The sole purpose of Perpetual Coin is to become a new “value unit” for the Credit Coin system.
It is NOT to create a “single uniform commodity in limited supply”, the value of which is dependent on its scarcity.
My original proposal was to create this new unit by selling tradable “Perpetual Coins” for national currencies. Community currencies do this now. They sell community dollars for national legal tender dollars which are held in trust for redemption. The community currency does this so that “dollars” have a circulation restricted to the community.
My purpose was simply to give the tradable token redemption value in national currency, and, within the system, a different trading value applied in Perpetual Coin. This value would be established by pricing new Perpetual Coin according to a formula derived from national currencies, designed to be both a smooth curve and not follow the general devaluation of fiat currencies.
The design of the formula is a matter of choice as to what we wish to achieve. Those who use the Perpetual Coin unit do so by agreement, because they understand that this is a viable mathematical, logical and equitable exit from the current system and its failing currencies.
The important point to avoid getting confused about, is that Perpetual Coin is NOT like gold, a “single uniform commodity in limited supply”. Nor is it a “reserve” of any sort. It is just an attempt to create a new unit for “value”, when the ONLY value units people currently comprehend are their own national currencies.
Ultimately it need not exist as a tradable item at all, just a formula.
So what sort of formula? The original proposal was to use currencies alone in the formula and allow the new unit to devalue, but much less and much more smoothly than most national currencies. Lately I have been persuaded to explore defining the Perpetual Coin by a commodity index such as Rogers International, (RICI). This idea of pegging the value unit to a broad basket of necessary commodities is very simply done. Below is an email discussion I had regarding the issue. I believe it will be useful in clarifying the difficult idea of value itself, something I consider to be always subjective and variable, and the practical need for a common value unit to use in trade.