Moribund Assets

We define moribund assets as inventory that’s overstocked, time sensitive, perishable, decaying, low velocity or subject to oversupply or other inefficiencies. These conditions decrease the probability of converting a seller’s assets into liquidity. Standard responses to these conditions is for vendors to discount by some means (including reward/loyalty mechanisms), thus closing the gap between an ideal market price and a sale price. Every business or enterprise contains inefficiencies that create enormous economic wastage. This wastage is created by the natural unwillingness of people to exchange liquidity (cash) for sub-optimal goods or services (moribund assets) within standard market price ranges whereby a merchant can generate a profit.

Assets & Liquidity

The UBU is a mechanism whereby businesses (UBUvendors) can monetise moribund assets (goods or services) by trading them for UBUs (liquidity). By collecting UBUs in volume, vendors can in turn exchange them for goods & services back up the supply chain, or exchange them for UBX tokens which they can hold or exchange for other liquid assets.

Inflationary controls

The UBUsphere is specifically designed to be anti-inflationary for a number of reasons. A freely issued unit of exchange would soon crash its value due to oversupply. Hence we created a dissipation mechanism whereby the e-wallet that holds UBUs effectively removes 1% of the sum of tokens per day on an algorithmic basis. This discourages hoarding and encourages trading velocity - both of which are critical to the sustainability of the UBUsphere.

UBU equals

• Cheaply available liquidity

• Creates economic resilience by altering the risk profile for illiquid assets

• UBU has an algorithmically controlled money supply while all fiat currencies are variable and subject to human intervention

A dual currency system = greater economic resilience

Economic resilience is the project’s end goal. It is in every human being’s interest to have a more stable and sustainable economic ecosystem. Restricted resource access is the cause of the overwhelming majority of the world’s problems, the root cause of social, political and economic instability. Access to the economy not only increases resilience, but will also grow the global economy at an unprecedented rate. It’s a win-win for every human, business, government or other institution.

Network effects in layman’s terms

A product or system displays positive network effects when more usage of the product by any user increases the product’s value for other users, and sometimes all users. Network effects can be two-sided: increases in usage by one set of users increases the value of a complementary product to another distinct set of users, and vice versa. This is the type of network effect that defines marketplaces such as Airbnb and Uber. More riders does not necessarily improve the Uber experience but it does attract more drivers, which improves Uber for the user. In the case of projectUBU, more citizens attracts more vendors and vice versa. Additionally, the network growth means greater velocity of UBUs which means greater adoption and a corresponding increase in value. As the UBX is mathematically linked to the UBU, any increase in the value of the UBU has a corresponding increase in the value of the UBX.

Impact of the UBU (Random walker)