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Volunteer Enterprise Debt (VED)

Exharbor created the concept of Volunteer Enterprise Debt (VED) to help itself grow up. VED is a virtual currency in a form of Certification of Ownership (COO, or referred as IOU by Ripple) created within the Ripple payment network. The issuing of VED is one-time, non repeatable.

Here is how it works:

Let a comapny/orgnization be P:

  1. Generate a gateway account G and keep G's secret key unexposed to anyone
  2. Generate a normal account A
  3. G creates COO of an amount X in currency C to A;
  4. G destory its secret key so that
    • G can no longer creates more COO
    • A do not need to pay back to G to decrease or remove COO as no one will claim them
  5. Now A owns some 'money' that is free:
    • A can use them to pay people volunteerly work or invest for A
      • An investor can get some VED from A by donating to the company
      • A developer can get some VED by contribute wisdom or labor to the comapny
    • C issued by G serves as a form of debt and wealth at the same time for all the people trusts G
      • It is debt because originally owing to someone, the voluteer V
      • It is wealth beacuse V will never claim it as the secret key has been destoried
      • Based on the math algrithm, no one else can guess the secret key and claim it
    • All the VED holders share the debt/wealth of the company
      • Anyone holding VED can exchange them on the free market with whatever rate if accpted by both parties
      • VED holders can send payment to A in terms of A pays back compensation, which means VED has a face value
  6. A can set terms for accepting VED paybacks
    • The company/orgnization can set a start time, for example, 3 years, to start accept VED paybacks
    • P must pay back if someone sends VED to keep its trust
    • If by the start time to accept VED paybacks the company is still noe able to pay the compensation, then the project fails. People can still wait but the trust value of VED has been influenced
    • If by that time the company is already able to clear all the VED and has more wealth than the original amount of X
      • Now VED serves as a kind of shares
      • If people send VED back they are reasonable to claim higher value
      • Or they may exchange with other ones for higher value
      • If new people believe the company has a brilliant future they have to buy from existing holders and claim higher values that the company can pay