No. 14 of 15Answers
Questions, answered
Plain answers, each tied to its source.
- Each answer is the one its page gives, with the page linked.
Short answers to the questions people ask first, each linked to the page that carries it.
What is VP2.0?
A velocity currency described in a patent application by Gavin Robert McGowen: spending earns a reward, an unspent balance pays a holding fee at a set interval, and a fund built from the fees pays for work and other approved initiatives.
Why does the speed of money matter?
Because spending is money times its speed: Fisher defined velocity as a year’s “total money payments for goods” divided by “the average amount of money in circulation”, so the same money, spent more often, makes more payments.
What is a velocity currency?
Money governed by its speed rather than its quantity: it charges money that sits, rewards money that moves, and tunes both within set limits by measuring how its money moves. VP2.0 is one: claim 2 is a network “configured to perform autonomous velocity-governing operations”.
How is VP2.0 different from stamp scrip?
Stamp scrip was charged with paper stamps at one price, sold by the town. VP2.0 deducts its holding fee itself, tunes its rates under an authorized transition rule (its transaction fee, in the example, between about 0.5% and 2%), pays a spending reward, and lets holders vote at a cost that rises with the square of their votes.
Who benefits from VP2.0?
In the design, the people who keep money moving: the spender earns a spending reward, the shop makes the sale, and a fund built from the fees pays eligible workers and societal initiatives. Money left idle pays a holding fee in proportion to the idle balance, and quadratic voting makes each added vote on a ballot cost more than the last.
How is a holding fee different from inflation?
A holding fee is stated in advance, with its interval, its base and its rate; inflation, in Keynes’s words, takes wealth “secretly and unobserved”.
How does money move through VP2.0?
In an eight-step cycle: a purchase pays a fee, the fee feeds a rewards pool and an economic-stimulation fund, an idle balance pays a holding fee, the fund pays eligible workers, and they spend again.
Can the VP2.0 fund run out?
Not below its floor: before any payment, the treasury checks the balance the payment would leave, and pays only if it stays at or above a reserve floor set from its average payouts (claims 11 and 12). Its income is a share of money moving and money sitting, so it is fed either way.
Does the VP2.0 fund need outside money to keep paying out?
No. In the design the fund runs on its own fees: the fund sustains its reinvestment with “a transaction-derived fee rather than an externally administered subsidy”, in a cycle “operating without a central administrator or external subsidy”.
Where does a VP2.0 transaction fee go?
In the specification’s examples, to user rewards, system operations and an economic-stimulation fund (FIG. 4); or half to rewards and half to the fund, which sends a tenth to a liquidity assurance pool and the rest to societal initiatives (FIG. 26).
Who sets the fees in VP2.0?
The network itself, within set limits: it measures its own operation, proposes a paired update, bounds it by an authorized transition rule, and activates it on every node at the same ledger interval (claim 2); holders may also vote to set or adjust the rates.
How are decisions made in VP2.0?
By quadratic voting: casting a number of votes costs that number squared in tokens (claim 10); a proposal passes on a quorum with more yes votes than no; and the fund pays out only if its balance after the payment would stay at or above a reserve floor (claims 11 and 12).
How does VP2.0 guard against quantum computers and fraud?
Each parameter update carries a post-quantum signature (claim 5), each transaction is scored on weighted factors tied to its jurisdiction (claim 13), and private conditions are proved without revealing private data, with a nullifier against reuse (claim 17).
Has money with a holding fee been tried before?
Yes: Wörgl, Austria, issued stamp scrip on August 1, 1932, with stamps at 1 percent a month, and its mayor reported the first wages paid returning to the town 20 times a month; Hawarden, Iowa, issued scrip stamped on each transfer in October 1932.
What do the VP2.0 drawings show?
The operating environment (FIG. 1), the architecture (FIG. 3), one transaction and its fee (FIG. 4), the quadratic vote (FIG. 6), the split of a pool of fees (FIG. 26), the control cycle (FIG. 28) and more, each with the specification’s own description.
What does the VP2.0 application claim?
Twenty claims: a digital currency ecosystem (claim 1); a ledger network that governs its own velocity through a measured, bounded, authenticated control cycle (claim 2), with sixteen claims that add detail to it; and the same cycle as stored instructions (claim 19) and as a method (claim 20).
What are the main criticisms of VP2.0, and how does it answer them?
That faster money raises prices, that people will move to other money, that governments banned stamp scrip, that an AI should not set fees, that quantum computers or cheating validators could break it, and that a reward bigger than the fee runs the fund dry. The application answers each: bounded rates with an inflation input and feedback, a reward for choosing it, compliance checks on every transaction, a clamp and rollback on the AI, recomputation by a quorum of nodes, post-quantum signatures, slashing, and rewards paid from a pool the fees fill, under a floor.
Where do the quotations on this site come from?
From the patent application itself, and from Fisher, Keynes, Smith, Gesell and the Federal Reserve, each read at its source and listed on this page with its address and the date it was read.
Is VP2.0 a coin I can buy?
No. VP2.0 is described in a patent application; this site offers no token, security or investment.
The sources in fullevery quotation on this page, where it stands
How it is read each answer on this page is an answer from the page it links to, carried by that page’s receipts.
How it is read the answers are drawn from the pages, not written apart from them.
“AI-Driven and Quantum-Resistant Digital Currency Ecosystem with Decentralized Governance and Economic Stimulation CROSS-REFERENCE TO RELATED APPLICATIONS This application is a continuation-in-part and claims the benefit of U.S. Application Serial No. 19/170,008, filed April 3, 2025 by Gavin Robert McGowen and titled “System and Method for an AI-Driven, Quantum-Resistant Digital Currency Ecosystem with Decentralized Governance and Economic Stimulation,” which application claims the benefit of U.S. Provisional Application Serial No. 63/779,204, filed Mar. 27, 2025 by Gavin Robert McGowen and titled “System and Method for Economic Stimulation via Self-Sustaining Digital Currency with Spending Rewards, Holdings Fees, and Job Creation Funding.” The entire contents of each of the foregoing applications, including any appendices, are incorporated herein by reference.”
VP2.0 specification
“Continuing the illustrative eight-operation economic cycle, a network participant 110 may transfer value to a merchant participant, a transaction fee may be deducted and directed to economic-stimulation fund 400, economic-stimulation fund 400 may allocate a portion of the received fee to a rewards pool, the rewards pool may credit a spending reward to the transacting network participant 110, a holding fee may be periodically deducted from an unspent wallet balance and directed to economic-stimulation fund 400, economic-stimulation fund 400 may allocate a further portion to reinvestment and participation support 170, reinvestment and participation support 170 may pay an eligible worker or other approved recipient for an eligible activity, and the recipient may spend the received value with a merchant participant, thereby returning transaction-derived value to transaction activity and circulation 120.”
VP2.0 specification
“The holding-fee mechanism may, for example, periodically deduct a portion of the unspent balance at a defined interval, such as a monthly interval.”
VP2.0 specification
“Societal initiatives 3708 may fund a job-creation program using an amount received from economic-stimulation fund 400.”
VP2.0 specification
How it is read claim 2 names the network by what it governs, its velocity: it is “configured to perform autonomous velocity-governing operations”. A velocity currency, in this site’s words, is a currency governed by the speed of its money rather than by its quantity.
“The important magnitude, called the velocity of circulation, or rapidity of turnover, is simply the quotient obtained by dividing the total money payments for goods in the course of a year by the average amount of money in circulation by which those payments are effected.”
Fisher, The Purchasing Power of Money (2d ed. 1922), ch. II
How it is read payments = money × velocity.
“a telemetry subsystem configured to obtain ledger-operation telemetry representing at least transaction activity, network participation, economic operation, validation operation, governance operation, value-allocation operation, and ledger formation;”
VP2.0 · Claim 2
“a parameter-transition control mechanism configured to constrain the parameter-state update according to an authorized transition rule;”
VP2.0 · Claim 2
“A distributed digital-currency ledger network configured to perform autonomous velocity-governing operations, the network comprising:”
VP2.0 · Claim 2
“There was to be no final redemption; and the stamps, at 1 per cent per month, were to be sold by the town, and the proceeds used, not for propagating the idea but for the enlargement of the town’s welfare work.”
Fisher, Stamp Scrip (1933), ch. IV
“The stamps alone are the guaranty, and they are sold by the town at 3 cents per dollar of scrip, which is redeemable whenever 36 stamps (aggregating $1.08) have been affixed.”
Fisher, Stamp Scrip (1933), ch. V
“The authorized range applied to dynamic fee 1300 may, for example, extend from approximately 0.5% to approximately 2% of a transaction amount.”
VP2.0 specification
“the nonlinear function is equal to a square of the number of votes cast in the vote; the governance subsystem is configured to determine that the proposal has passed responsive to a participation rate meeting or exceeding a governance quorum and a total number of yes votes exceeding a total number of no votes; and”
VP2.0 · Claim 10
“A fourth share allocated to societal initiatives 3708 may, for example, equal approximately ninety percent of an amount received by economic-stimulation fund 400 in the same illustrative configuration.”
VP2.0 specification
How it is read a fee that is a share of a balance grows in step with the balance.
“each validation node is configured to verify the parameter-state package, activate the constrained parameter-state update as an activated parameter state at the effective ledger interval responsive to the verification, and apply the activated parameter state during ledger operation to control transaction admission, validation operation, and ledger-record formation, and”
VP2.0 · Claim 2
“An illustrative, non-limiting holding-fee rate may fall within a range of approximately 0.5% to 2% of the unspent balance per interval, while an illustrative, non-limiting spending-reward rate credited to a network participant 110 responsive to a transaction may fall within a range of approximately 5% to 10% of the transaction value.”
VP2.0 specification
“By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some.”
Keynes, The Economic Consequences of the Peace (1919), ch. VI
“determine, for a proposed disbursement from the treasury, whether a balance of the treasury after the proposed disbursement would remain at or above a reserve floor, and”
VP2.0 · Claim 11
“the reserve floor is calculated from an average disbursement from the treasury over a trailing plurality of ledger intervals, and”
VP2.0 · Claim 12
“Applying a holding-fee mechanism together with a spending-reward mechanism may, for example, advantageously enable the system to autonomously discourage indefinite accumulation of an unspent balance while continuing to fund reinvestment and participation support 170, without depending on continued transaction activity alone.”
VP2.0 specification
“AI-driven dynamic adjustment mechanism 101 and economic-stimulation fund 400 may sustain a reinvestment mechanism using a transaction-derived fee rather than an externally administered subsidy.”
VP2.0 specification
“Autonomous velocity-governing operations may, for example, be implemented via the recurring, self-sustaining transaction-activity-and-circulation cycle described with reference to FIG. 1, operating without a central administrator or external subsidy.”
VP2.0 specification
FIG. 4: “Fig. 4 is a flowchart depicting an example transaction-flow method for processing a value transfer and allocating a resulting transaction fee.”
FIG. 26: “Fig. 26 is a block diagram depicting an example mechanism for allocating a collected transaction fee among multiple funding destinations.”
“A first share and a second share allocated by liquidity-pool funding mechanism 3700 may, for example, each equal approximately fifty percent of transaction fees 3702 in one illustrative configuration.”
VP2.0 specification
“A third share allocated to liquidity assurance pool 3706 may, for example, equal approximately ten percent of an amount received by economic-stimulation fund 400 in one illustrative configuration.”
VP2.0 specification
“The spending reward, the holding fee, and the transaction fee, and/or the allocations derived therefrom, may be (e.g., each) fixed, may be adjusted through a governance authorization committed by DAO governance module 300, and/or may be adjusted through a parameter-state update generated by AI-driven dynamic adjustment mechanism 101 and constrained by bounded-transition processing module 270.”
VP2.0 specification
“The distributed digital-currency ledger network of claim 2, wherein the authentication data comprises a digital signature generated using a post-quantum digital signature scheme that is distinct from a key-encapsulation mechanism used by the distributed digital-currency ledger network for confidentiality.”
VP2.0 · Claim 5
“determine a jurisdiction associated with a transaction admitted under the activated parameter state; calculate a compliance risk score for the transaction from a plurality of weighted factors associated with the jurisdiction, and”
VP2.0 · Claim 13
“record a nullifier associated with the proof; and reject a subsequent transaction associated with a nullifier matching the recorded nullifier,”
VP2.0 · Claim 17
“According to plan, on August 1, 1932, 32,000 Schillings’ worth of the scrip (equivalent to about $4500) was issued”
Fisher, Stamp Scrip (1933), ch. IV
“As to the rate of turnover, the mayor reports that the amount of the first wages paid has returned to the city 20 times a month.”
Fisher, Stamp Scrip (1933), ch. IV
“in October 1932, upon petition, the town decided to issue $300 in Stamp Scrip”
Fisher, Stamp Scrip (1933), ch. V
“one stamp is to be affixed with each transfer of the scrip”
Fisher, Stamp Scrip (1933), ch. V
FIG. 1: “Fig. 1 is a block diagram depicting an operating environment for a distributed digital-currency economic system in an illustrative use case scenario.”
FIG. 3: “Fig. 3 is a block diagram depicting an architecture in which an AI-driven dynamic adjustment mechanism, a quantum-resistant blockchain, a DAO governance module, an economic-stimulation fund, and a user interface cooperate.”
FIG. 6: “Fig. 6 is a flowchart depicting an example governance method for evaluating a proposal using quadratic voting.”
FIG. 28: “Fig. 28 is a flowchart depicting an example computer-implemented method for coordinating a recurring control cycle across the economic system.”
“A digital currency ecosystem comprising:”
VP2.0 · Claim 1
“A non-transitory computer-readable medium storing instructions that, when executed by one or more processors coupled to a memory storing the instructions, cause the one or more processors to perform operations comprising:”
VP2.0 · Claim 19
“A computer-implemented method for controlling operation of a distributed digital-currency ledger network, the method comprising:”
VP2.0 · Claim 20
“Economic data feed 102 may, in some examples, include an inflation-rate measure obtained from a third-party data source.”
VP2.0 specification
“Transaction initiation 600 may supply a transaction request to KYC/AML (know your customer / anti-money laundering) check 3802.”
VP2.0 specification
“Clamping dynamic fee 1300 independently of an output produced by deep Q-network 1200 may reduce a likelihood that an anomalous model output produces a fee value falling outside the authorized range.”
VP2.0 specification
“In some embodiments, rather than requiring every validator node of validator nodes 1900-1909 to re-execute the forward pass of deep Q-network 1200, a defined subset of validator nodes 1900-1909 (e.g., a subset satisfying a committed quorum fraction) may independently re-execute the forward pass and attest to a matching result, so that quantum consensus engine 1805 may accept a resulting parameter-state update responsive to the attesting subset satisfying the committed quorum fraction, reducing a computational burden otherwise associated with requiring re-execution at every validator node while still providing a cross-validator consistency check.”
VP2.0 specification
“Self-healing architecture 2500 may, by contrast, slash a staked token amount associated with a validator node responsive to a verifiable fault determination for that validator node, such as a determination that the validator node produced two conflicting signed ledger-block proposals for a common block height (e.g., a double-signing fault), and/or responsive to a supermajority attestation among validator nodes 1900-1909 that the validator node engaged in a defined fault condition.”
VP2.0 specification
“disburse the proposed disbursement to a recipient responsive to the balance remaining at or above the reserve floor and the recipient satisfying a committed eligibility criterion.”
VP2.0 · Claim 11
How it is read the list is the bank’s own, printed.
How it is read the site is the author’s description of his application.