Feature/Function;Libra Facebook Coin;ARCC;Benefits
Objective;Lowering transaction costs in remittance and used as e-wallet for transactions;Creating microasset for entrepreneurial investment for the urban working poor;ARCC is creating a new decentralized paradigm, while Libra is playing catch up to Wechat
Price Objective;Create a stable new value based on underlying assets.;Maximize the price based on the performance of currency reserve, underlying assets.;ARCC’s focus is on maximizing the value of ARCC by constantly increasing the value and fund inflow into the currency reserve and assets.
Currency Reserve;Basket of Major Fiat Currencies to provide base value of token and is subject to deflationary risk;Basket of USD, CHF, CAN, Gold and BTC to provide starting value of token and is subject to trading risk;All of ARCC’s currencies will be managed through high frequency market neutral trading funds and expected to return a minimum of 12% annually.
Underlying Assets;Assumed: Government Bonds ranging from 2.5% to Corporate Bonds up to 5% annual. Extremely liquid.;Social impact tech and infrastructure projects ranging from 16% to 20% annual. 3 to 10 years of holding.;Libra coin needs to be liquid to handle redemptions, whereas ARCC’s investments are never liquidated for redemptions.
Monetary Policy;None, completely dictated by the FX market and deposits into the exchange for growth. Interest from the reserve is used to pay for operations and nodes as their rewards. Libra coin’s value will be somewhere between the USD and the EUR effectively making it another global reserve currency like the USD. The focus is being an instant transactional currency.;50-year monetary policy of 8 years, 10 years, 22 years, and 10 years. The first 8 years is focused on increasing the currency reserve and fund inflow. Next 10 years focused on maximizing a stable price based on currency reserve amounts and fund inflow. The third phase of 22 years is focused on making it a transactional currency. ARCC’s objective is to be a high growth store of value in the first 18 years.;ARCC has an aggressive monetary policy to ensure ARCC’s token has growth. ARCC’s price in the first 8 years will be allowed to completely float on the secondary exchange markets and will exhibit a great deal of volatility and growth. In phase 2, ARCC’s value will be maximized through direct market intervention based on the size and health of ARCC’s currency reserve.
On boarding;Libra will only allow nodes to participate in the network with a minimum of $10,000,000. Access to Libra requires a deposit of local fiat currency.;ARCC is free to earn through participation in our ‘Social Proof of Work’ model and participation in governance is by member nomination and voting.;Libra is a top down organization which leverages their existing relationships through facebook and is not financially inclusive at the token participation level. ARCC takes a bottom up empowerment approach to open free access to the urban working poor.
Adoption;Libra to be adopted through Facebook’s digital platforms including Facebook, Whatsapp and Instagram.;ARCC to be adopted through ARCC’s fintech asset management platform where users earn ARCC for free and can manage it on the platform as an asset.;Libra’s adoption is simply another digital currency as it does not secure the integrity of a decentralized network, whereas ARCC’s adoption secures its decentralized information network as well as provides financial inclusion for their users.
Network Effects;Libra’s adoption does not add additional network effects to the social network, it only maximizes its potential profit and raises its barriers to entry.;ARCC will be the first decentralized distributed reserve structure for the stability and economic development of the individual in emerging failing markets.;The additional of Libra is simply a payment functionality for Facebook, but for ARCC it will act as a reserve currency to support local currencies at the individual level as they do not need to exchange local currency for ARCC.
Risks;Other than regulatory risks in becoming a corporate version of the US dollar, Libra has the same risks as every central bank.;ARCC has investment risk, but is aligned with the new decentralized economy and shares both the risks in volatility and gains in growth.;Libra has the same risks of any fiat currency and none of the gains of the new decentralized economy. ARCC has risks with its underlying assets in the centralized space, but offsets that with gains in the decentralized space and its associated volatility.
Price Discovery;Done on secondary markets. Libra may say it is not a stablecoin, but it is, except that instead of a peg, it will provide an equivalent value of its holdings in relation to fiat.;Done on secondary markets, but with active participation by ARCC according to its monetary policy.;Libra’s price is expected to be near to the value of its holdings and thus is expected to act as a corporate reserve and transactional currency. Whereas, ARCC’s price will be determined entirely by the secondary market with ARCC as a player in the secondary market.
Price Movement;It is expected that secondary market arbitrage will keep its price near its public declaration of underlying assets because Libra can be exchanged for the assets.;The price is expected in the long run to exceed the total underlying assets because the value will also be assets on its potential growth of those assets and investment alongside the growth of the asset management network.;Libra inherits whatever aggregated price movement from its underlying assets of fiat currencies, but ARCC is active as both a foreign currency reserve and fintech crypto growth stock in its movement.
Product;Libra may not be a pegged stablecoin, but it acts as reserve stablecoin in the the price is dictated by its reserve holdings only. This makes it a transactional currency which is fundamentally no different than a centralized digital currency which derives its value inverse of the liability it represents.;ARCC is a macroeconomic development coin whose value is not pegged or represented only in the reserve currency holdings, but how it reflects and contributes to production. ARCC is the token for a decentralized economic framework of a reserve structure, fintech asset management platform, social impact fund, and decentralized information network.;Libra is a centralized digital currency that can be traded on the secondary markets and has its value dictated by its holdings. Whereas ARCC is part of a complete decentralized framework for true structural financial inclusion and empowerment of the urban working poor through a microasset and public mandate.
Concluding Summary;Libra is an upgraded multi-corporate participatory top down digital currency that makes use of the distributed nature of cryptocurrencies, but little else. It is a solid function and necessary one for a platform like Facebook to compete with platforms like WeChat and Alipay. Because onboarding is done through the exchange of fiat currency, it does not promote financial inclusion other than through the accessibility of its vast platform but is still subject to all the regulatory e-money transmitter and e-money holding requirements.;ARCC is a decentralized economic system for structural financial inclusion which seeks to create a new paradigm in the area of microfinance, namely that of ‘microassets’. The value derived for ARCC is solely attributed to the distributed accessibility of debt free capital and as a social transparency network to give empowerment to the unbanked, undocumented and exploited urban working poor in Southeast and South Asia. The alpha value created is via the token economy that promotes on boarding, adoption, and long term asset development and entrepreneurial activity.;Libra is an exceptional step for mature companies looking towards a model which allows for an upgraded centralized digital currency to be widely adopted and have its price discovery on secondary markets. It makes a very clear case for a first step towards an independent reserve structure and thus an independent reserve currency. This is a major benefit for a project like ARCC which is a few steps further as a reserve currency that derives its value from being a part of a decentralized economic system and provides a point of education and articulation as to the logic and basis for ARCC as a world changing innovation.