An inflation and deflation protected currency token with unlimited issuance, constrained only by zero inflation and zero deflation. Ducat is used for daily transactions without the need of conversion to US dollar, functioning as a store of value, a unit of account and a medium of exchange. Ducat comes from “Swiss Ducat,” prescribed by F. A. Hayek (Nobel Laureate 1974) in Chapter “VIII. Putting Private Token Money into Circulation,” Denationalization of Money, page 46, 1976.
Interest payment to Ducat holders, payment to merchants for covering transaction costs of merchants’ own crypto vendors (3%), and purchase rewards to both consumers (5.5%-10%) and merchants (1%-4%) are the primary methodologies for Ducat supply, other than conversion from US dollar (USD pegged stablecoins) to Ducat. Therefore, Ducat supply depends on and is endogenous to the process in which consumers use Ducat for purchases and hold Ducat for saving. This endogenous process sets Ducat apart from these cryptocurrencies (such as BTC, ETH, XRP, Doge, Sol, etc.) whose supplies are irrelevant and exogenous to consumers’ purchase at merchants.
A governance token with a maximum authorized finite number of 10 trillion. Locke is used to participate in governance by holders. The name Locke is derived from John Locke who defined money from the perspective of mutual consent, enunciating the spirit of American CryptoFed DAO, “And thus came in the use of money; some lasting thing that men might keep without spoiling, and that, by mutual consent, men would take in exchange for the truly useful but perishable supports of life.” Two Treatises of Government, page 125, 1689.
Pursuant to CryptoFed Constitution, Locke will be distributed, free of charge, to contributors who may sell the Locke on open crypto markets for their own interest, leading to an independent formation of a secondary market for Locke. When consumers purchase Ducat with USD pegged stablecoins from CryptoFed on open crypto markets, the proceeds of USD pegged stablecoins can only be used to buy back Locke from open crypto markets for burning (destroying). Under the restriction of finite number of 10 trillion, new Locke can also be issued to buy back Ducat from open crypto markets for burning (destroying). Thus, Locke can not only absorb the value inflow from US dollar economy but also stabilize Ducat economy.