Gini Stakeholder Distributions
The following pie charts illustrate a common money supply distribution used by many other cryptocurrencies today compared to Gini's money supply.
Existing Cryptocurrencies Do Not Produce Equitable Wealth Distributions. In the left-side pie chart above, notice the “Remaining for Mining” piece of the pie. In most cryptocurrencies, most of that portion actually goes to a tiny number of founders, early investors, and wealthy technology experts over time because their systems are designed to distribute the block creation rewards based on the distribution of wealth (stake) or hashing power (mining power). For Bitcoin and most other cryptocurrencies today, a tiny number of entities control over 90% of their mining power; and over 70% of their money supply (stake) is owned by a tiny cartel of founders, early investors, and miners. That means the actual amount of crypto wealth available to the general public over time will be significantly less than 25%. And without any ecosystem stability mechanisms, their distributions will inevitably become more concentrated over time. This makes them far worse than the economic tyranny in any fiat economy today.
Gini’s Money Supply Produces an Equitable Wealth Distribution. In contrast to other cryptocurrencies, the Gini pie chart above illustrates how a far greater portion of the initial Gini money supply is allocated to the general public. Additionally, Gini’s Ecosystem Stability Mechanism (ESM) guarantees that the long-run money supply available to the general public and used for the general public increases to greater than 90% over time. (The actual amount will likely be closer to 95%.) This is true for three reasons:
- Gini’s Community Rewards System and corresponding Value Streams automatically flow equitably and sustainably throughout the Gini ecosystem.
- The portion of the money supply owned and controlled by Gini’s early founders/investors, ecosystem partners, and non-founding team shrinks as a percentage of the total money supply as the supply naturally and sustainably grows to the 10 billion maximum over a 10-year period.
- A substantial amount of the Community Pool funds is distributed to worthwhile projects that benefit the entire Gini ecosystem, not only a tiny number of miners, investors, and founders.
Gini Stakeholder Distributions. Each piece of the Gini distribution pie is explained as follows:
- General Public (75%). This piece of the pie represents the portion of the Gini money supply that is initially allocated to the general public. “General public” means all stakeholders that are not founders/investors, Gini Foundation employees, or formal ecosystem partners. The ESM is specifically designed to ensure that the portion of the money supply allocated to the general public increases to at least 90% over time.
- Ecosystem Partners (10%). This piece of the pie represents thousands of third-party technical developers, nonprofit organizations (universities, colleges, research centers, think-tanks, etc.), and complementary organizations that contribute to the Gini ecosystem in meaningful ways. These Gini funds are specifically allocated to important technology, public relations, and legal defense projects that benefit the entire Gini ecosystem by building valuable services, tools, features, and legal defense strategies to improve the Gini ecosystem and protect the Gini Foundation from malicious attacks by banks and governments. Collectively, Gini’s Ecosystem Partners are crucial to the long-term success of Gini, which is why a meaningful portion of the initial money supply is allocated to this piece of the pie.
- Non-Founder Team Pool (5%). This piece of the pie represents the portion of the initial money supply allocated to the non-founder employees, independent contractors of the Gini Foundation, and general organizational operations. Like any other nonprofit organization, Gini must be able to attract talented employees and contractors; so, this portion of the initial money supply is dedicated to compensating all the employees and contractors who are necessary to manage Gini’s infrastructure and operations.
- Founders/Investors (10%). This piece of the pie is allocated to Gini’s founding team and early investors to compensate them for the tremendous financial and personal risks they are taking to build the Gini ecosystem. Given the status quo-resistant nature of the Gini Foundation, we are risking our careers, our existing incomes, and even our personal safety. Thus, we hope readers appreciate the sacrifices we are making and agree that we deserve some compensation for all these risks. Also keep in mind that 10% is a much smaller portion of the pie than other crypto projects allocate to their founders/investors; so, we believe this allocation achieves a healthy balance and aligns the interests of the Gini founders/investors with the best interests of the entire Gini ecosystem.
Gini’s Ecosystem Stability Mechanism. Recall that many other crypto project teams confuse per-capita wealth with median wealth, which means their claims that wealth and power concentration in their networks will decrease over time are not credible. Additionally, the monetary policies, systems, and blockchain protocol design of other cryptocurrency networks guarantees that the wealth and power in their ecosystems will become more concentrated over time. In contrast, Gini’s Community-Driven Value Injection Process (CVIP), Community Rewards System, and Value Streams guarantee at the blockchain protocol level that the concentration of wealth and power throughout the Gini ecosystem will decrease systematically and predictably. Collectively, we refer to all of these features as Gini’s Ecosystem Stability Mechanism (ESM).
To visualize how the ESM causes the Gini money supply and wealth concentration to change over time, the following chart illustrates the estimated Gini money supply distribution in the year 2030.
A Guaranteed Equitable Wealth Distribution. The two Gini money supply scenarios illustrated above are guaranteed based on the automated ESM; so, there can be no favoritism or backdoors for a tiny number of whales or special interest groups to concentrate their wealth and power and take control of the Gini ecosystem. In contrast to the 80%-plus Gini Indexes of all major cryptocurrencies today, the ESM guarantees that the Gini ecosystem will never have a Gini Index that exceeds 25% after all Gini currency units have been distributed. This is the optimal distribution of wealth throughout a population based on the highest quality of governance and quality of life outcomes achieved by the most politically stable and egalitarian countries on Earth today.
The Gini Difference. No other cryptocurrency has been created with as much careful attention to detail regarding the distribution of wealth and power within their ecosystems. Additionally, all the ecosystem benefits discussed throughout this website and the Gini book are achieved while simultaneously preserving all the benefits of free-market capitalism because nothing in the logic of the Gini Platform prevents any stakeholder from engaging in any volume of free-market commercial exchange. In fact, anybody can earn a Gini fortune if they achieve the pinnacle of success by creating great products/services and selling them to millions of other Gini stakeholders within the Gini ecosystem.
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