May 4, 2021
Dear CENTUS Community,
It has been 2 years since we started creating the CENTUS monetary system, which was distinguished not only by a stable token price, but also brought its holders a regular basic income based on seigniorage. We confidently walked towards our goal with the support of all members of our community and were confident that this goal was achievable.
All this time, we had been successfully creating the value of CENTUS, maintaining its stable value, raising the project capitalization higher and higher by creating and distributing this value among the project participants, practically avoiding platform failures. CENTUS remained stable thanks to a well-thought-out incentive system to ensure that participants buy and sell tokens in response to changes in demand and seigniorage accrual. These incentives have worked successfully for a long time, creating a uniform CENTUS supply on the market.
Since the CENTUS monetary model is based on a variable reserve and it took some time for the CENTUS ecosystem to develop, we knew we would need an initial capital investment of our own. That is why we have indicated in our White Paper that CENTUS is fully backed by reserves within the first 100 million tokens. As the issuance of CENTUS increased, the reserve ratio gradually decreased, reflecting the increasing market confidence in CENTUS.
This allowed us to launch the system and attract new participants, which also contributed to the increased value of the project. Then we put together a team of partners and planned to launch the platform with full functionality.
Unfortunately, the March hack of CENTUS wallets had a serious negative impact on our ability to maintain CENTUS price stability.
We considered various alternative ways of working that would allow us to continue to promote the project, while maintaining the attractiveness and competitiveness of our product, including various marketing options. As a result, we came to the conclusion that none of the development paths we have considered is sufficiently consistent with our vision and is not attractive enough for our users.
As the sale of tokens on the exchange increased, creating a negative cash flow in the system, we continued to channel resources into reserves for the buyback of CENTUS, but gradually came to a consensus that we would not be able to avoid a fall in the price of CENTUS by such methods.
We also considered the issue of directing all remaining reserve funds to buy out CENTUS and held a vote to find out the opinion of our members. As you know, more than 99% of the voting DBC token holders voted against this option.
Therefore, in order to ultimately preserve the stability of our system, we are launching BILLEX auctions to convert CENTUS. If this is not done, the CENTUS price will continue to remain unstable for an indefinite period.
Please note that the fewer holders participate in BILLEX auctions, the longer it will take to stabilize CENTUS, which at this stage will make the token less attractive to users. Therefore, we ask you to take an active part in the auction.
Yours sincerely,
Alexander Egorov, CENTUS co-founder
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To stabilize the CENTUS price, the following changes are made after the news is published:
1. The auction for the conversion of CENTUS to BILLEX* is announced.
2. The 5% withdrawals from the security deposits are suspended.
3. Basic income and seigniorage are accrued only to the CENTUS term deposits (for 3 months or more)* holders: The basic income is accrued in BINCOME tokens in the amount of 2%, the seigniorage is accrued in USD** tokens in the amount of 0.52% + additional deposit rate.
4. The seigniorage to DBC holders is accrued in USD tokens: 10% of the seigniorage amount credited to the term deposit holders is distributed among the DBC holders proportionally to DBC amount on the participants’ Stellar addresses.
5. Senior partners receive commissions for junior partners purchases in USD tokens in the amount of:
- for new purchases: 50% of their first level partners’ seigniorage and 10% of their second line partners’ seigniorage. These commissions are accrued to their regular wallets.
- for other purchases: 20% of the first level partners’ seignorage and 5% of the seigniorage of their second-level partners seigniorage. These commissions are accrued to their security deposit wallets.
These clauses can be supplemented, canceled or changed at any time in order to stabilize the value of the CENTUS token and to facilitate the successful development of the project as a whole.
CENTUS / BILLEX Discount auction
When converting CENTUS to BILLEX with a discount, you get income when you redeem BILLEX
CONDITIONS:
Auction start: 06.05.2021 at 11.00 UTC
Asset code: BILLEX
Issuer address: GBILKAL6TH56OTUIWRVUCUGTV22NHLH5QFWBHCUPVHBX6B5FVJYSSIBD
Auction limit: 100,000,000 BILLEX
Bidding deadline: 72 hours
Auction address for sending CENTUS: GCBB7VTRUMKUZAVD6NRZJNP5BWTWKRBJ4NCLXKNKRUYQDOJG5WPFFYNH
(the offer is considered accepted from the moment of its creation and signing by the participant. If you have a multisig address, you should not cancel the transaction until it is signed by other co-signers).
Minimum bid: 100 CENTUS
Maximum discount: 90%
Auction address: http://bit.ly/2P6XXNR
The bidding process, participants’ proposals for prices and a number of CENTUS can be observed online HERE.
You can read more about how the BILLEX auction works HERE.
BILLEX auctions will be held regularly until a sufficient CENTUS amount has been converted.
*Participation in the auction is voluntary. If you do not want to convert CENTUS, you can create a term deposit for a period of at least 3 months and receive income on it, or leave CENTUS at the current address until the price stabilizes (seigniorage and basic income will not be accrued to such addresses).
IMPORTANT: The term deposit must be placed at the newly created Stellar address, which was not previously used in the project.
**USD seigniorage is paid within the limits of available reserves, CENTUS does not issue them and, accordingly, cannot increase their supply.
