DeFi of debt currency by the three-sukumi system
― Redesign of the supporting structure of the credit value of currency -
⸻
Summary
This proposal redefines the structure that supports the legitimacy of the value of debt currency and shows an institutional design that converts the traditional centralized finance (CeFi) into decentralized finance (DeFi) by distributing its proof function into three subjects.
In the traditional monetary system, the legitimacy of credit is concentrated in specific institutions. On the other hand, the three-point system in this proposal builds a more stable and structured credit system by decentralizing the proof of value.
⸻
■ 2. Problem setting
What is the value of the currency supported by?
In this paper, the value of the currency is regarded as a “proof of legitimacy”.
Debt currency is established by the following three proofs.
• Work (labor and production)
• Stake (collateral and holding)
• Lend (time value and interest rate)
⸻
■ 3. The legitimacy of the value of debt currency
■ 1 Work (labor and production)
Economic activities create value and eventually collect it as a tax. This is a substantial support for currency.
⸻
■ 2 Stake (collateral and preparation)
Central bank reserves and financial assets maintain the stable value of the currency. This is responsible for the function of preserving value.
⸻
■ 3 Lend (time value and interest rate)
Through interest rates, the value of time is adjusted. This controls the liquidity and circulation of the currency.
⸻
■ Summary
Debt currency is a credit system that is justified by the three elements of Work, Stake, and Lend.
⸻
■ 4. CeFi and DeFi
■ CeFi (Centralized Finance)
A state in which the proof of the legitimacy of value is concentrated in the government and central banks.
⸻
■ DeFi (decentralized finance)
A state in which the proof of the legitimacy of value is distributed to multiple subjects or structures.
⸻
■ 5. The structure of the three-sukumi system
The three-sukumi system corresponds to three subjects with three proofs.
⸻
■ Correspondence relationship
• Government → Work (labor and production) → Government coins and government bonds
• Central bank → Lend (time value) → Central bank notes and interest rates
• Sovereign (people and market) → Stake (collateral and holding) → Fund tokens and stable coins
⸻
■ 6. The essence of the structure
The Sansukumi system is a mechanism that transforms the credit structure of the currency from centralized to diversified by distributing the proof of the legitimacy of the value of debt currency to three institutions.
⸻
■ 7. Definition of DeFiization
DeFi in this proposal is not a technical dispersion,
Dispersion of the subject of proof of the legitimacy of value
It means.
⸻
■ 8. Comparative structure
An element Conventional (CeFi) Three-skumi system (DeFi)
Work Focus on the government Government
Lend Concentrate on the central bank A central bank
Stake Weak and indirect A sovereign
⸻
■ 9. Related structure (supplement)
■
Bitcoin
• Only Work is used (calculation resources)
• A single structure without other certifications
⸻
■
Ethereum
• Based on Stake and having a Lend element
• Intermediate structure
⸻
■ 10. Conclusion
The three-sukumi system eliminates the centralized structure of credit and redesigns the monetary system to be decentralized by distributing the three elements of debt currency (Work, Stake, and Lend) into three subjects.
⸻
■ Final definition (one line)
The three-sukumi system is a system that converts the CeFi credit structure into a DeFi structure by distributing the proof of the legitimacy of the value of debt currency into three subjects.
⸻
DeFiization of debt currency by the three-sukumi system
― Redesign of the supporting structure of the credit value of currency -
⸻
■ 1. A summary
This proposal redefines the structure that supports the legitimacy of the value of debt currency and shows an institutional design that converts the traditional centralized finance (CeFi) into decentralized finance (DeFi) by distributing its proof function into three subjects.
In the traditional monetary system, the legitimacy of credit is concentrated in specific institutions. On the other hand, the three-point system in this proposal builds a more stable and structured credit system by decentralizing the proof of value.
⸻
■ 2. Problem setting
What is the value of the currency supported by?
In this paper, the value of the currency is regarded as a “proof of legitimacy”.
Debt currency is established by the following three proofs.
Work (labor and production)
Stake (collateral and holding)
Lend (time value and interest rate)
⸻
■ 3. The legitimacy of the value of debt currency
■ 1 Work (labor and production)
Economic activities create value and eventually collect it as a tax. This is a substantial support for currency.
⸻
■ 2 Stake (collateral and preparation)
Central bank reserves and financial assets maintain the stable value of the currency. This is responsible for the function of preserving value.
⸻
■ 3 Lend (time value and interest rate)
Through interest rates, the value of time is adjusted. This controls the liquidity and circulation of the currency.
⸻
■ Summary
Debt currency is a credit system that is justified by the three elements of Work, Stake, and Lend.
⸻
■ 4. CeFi and DeFi
■ CeFi (Centralized Finance)
A state in which the proof of the legitimacy of value is concentrated in the government and central banks.
⸻
■ DeFi (decentralized finance)
A state in which the proof of the legitimacy of value is distributed to multiple subjects or structures.
⸻
■ 5. The structure of the three-sukumi system
The three-sukumi system corresponds to three subjects with three proofs.
⸻
■ Correspondence relationship
Government → Work (labor and production) → Government coins and government bonds
Central bank → Lend (time value) → Central bank notes and interest rates
Sovereign (people and market) → Stake (collateral and holding) → Fund tokens and stable coins
⸻
■ 6. The essence of the structure
The Sansukumi system is a mechanism that transforms the credit structure of the currency from centralized to diversified by distributing the proof of the legitimacy of the value of debt currency to three institutions.
⸻
■ 7. Definition of DeFiization
DeFi in this proposal is not a technical dispersion,
Dispersion of the subject of proof of the legitimacy of value
It means.
⸻
■ 8. Comparative structure
⸻
■ 9. Related structure (supplement)
■
Bitcoin
Only Work is used (calculation resources)
A single structure without other certifications
⸻
■
Ethereum
Based on Stake and having a Lend element
Intermediate structure
⸻
■ 10. Conclusion
The three-sukumi system eliminates the centralized structure of credit and redesigns the monetary system to be decentralized by distributing the three elements of debt currency (Work, Stake, and Lend) into three subjects.
⸻
■ Final definition (one line)
The three-sukumi system is a system that converts the CeFi credit structure into a DeFi structure by distributing the proof of the legitimacy of the value of debt currency into three subjects.
⸻