Frequently asked questions

Is there an ICO?

FREEOS is not pre-mined/pre-minted. It is created solely by the efforts of the community through voting or the AirClaim mechanism prior to launch. The founders do not hold any FREEOS tokens prior and therefore cannot send/sell any tokens.

Is it true that all you need to do is vote to obtain the FREEOS rewards?

Mostly yes. As long the participant's subscription is active, then all the participant needs to do is answer a few survey questions and then vote on the the economic controls. Once those controls are ratified by the community through the voting process, then each active participant gets rewarded in FREEOS for their part.

How do I purchase FREEOS tokens as an investment?

FREEOS is not designed to be an investment. It is designed to be a currency issued by a economic system by the people, and for the people at a grassroutes level. It is also designed to be fairly distributed, as decentralised as possible from the start. If you are an aligned investor/philanthropist and would like to support the efforts of FreeDAO, however please contact us here.

How to join Freeos?

There are 3 main ways.

  1. The first way—open to those that decide to join and participate prior to launch—is the AirClaim. This is a type of "airdrop" that is available to those that engage with our AirClaim pre-launch procedure. This is limited to 15 claims, 1 per week, prior to launch. To sign up for the AirClaim, please join here.
  2. The second way is to pay the annual subscription fees. These are designed so that the cost (in FREEOS) is later recouped in merely a fraction of a year's time.
  3. The third way is to obtain a "Voucher". These Vouchers are a type of digital crypto-asset that have a year-long expiry. These will be primarily received and distributed by either the FreeDAO group, or a trusted partner at a later date, post-launch.

How does the FREEOS token have value?

  • Imagine a government wanted to issue its own cryptocurrency (let's call it GOVT). Why would any people or business accept it? Creating demand for any token is the most critical challenge of every crypto project. Luckily for this imaginary government, it needs to do is decide that all the taxes must be paid in the GOVT token. All aspects of society will now rush to obtain GOVT to pay their taxes or they are fined, their assets liquidated or they are jailed. Demand for this new currency is now sorted.
  • So, now the government can issue tokens into the economy. People and businesses accept payments in GOVT because they know there a base demand for it—and that base demand means this token has a base value. When the taxes are paid back to the government, imagine these tokens are burned (destroyed) instead of simply going to the government coffers. This offers a deflationary mechanism to the economy each time the tokens are burned (destroyed).
  • As long as the demand for tokens is equal or higher than the supply, the government can issue more tokens without the price of the token going down (devaluating). The initial demand is a (complex) function of tax obligations and the velocity of the token (propensity to either spend or store).
  • It is also reasonable to assume that people and businesses will hold a balance of GOVT in their accounts and might also use it for payments, as not all the GOVT will be used for paying taxes immediately. These additional payments further increases the demand and further increases the value and also results in a positive (greater than zero) circulating GOVT supply.
  • Now imagine that—instead of a centralised government issuing the token—the people of the economy vote directly on the inflation rate. And imagine that the same people can vote on the tax rate (in the case of Freeos, this is substituted by the subscription fees). And then—instead of the government minting tokens for itself and to lend to banks that then finally lend to the people—the government IS the people? Directly and freely voting and minting their own resources into existence. Then individuals can trade their way by providing goods and services to increase their wealth from this base. This is essentially the Freeos concept.

What is an AirClaim? And how do I join?

  • The AirClaim is a way to distribute FREEOS tokens to the first participants. Many other cryptocurrencies deliver tokens freely in what is often called an "airdrop". This is usually only done once. For Freeos the AirClaim is a type of continuous airdrop that is claimed by active participants once a week over a fifteen week period. Each week increases the ammount of FREEOS tokens that can be received with the end goal of having twice as much FREEOS as necessary to join the FREEOS economy. To accomplish this, each participant needs to keep half of the previous week's AirClaim reward in order to receive the next week's dividends.
  • To operate the AirClaim, you will first need to have an EOSIO-based account. Once you have an account, you can find the instructions (here).

Why do the AirClaim rewards increase every week?

  • The AirClaim is designed to kick-start the economy and to ensure that fiscally responsible individuals are amongst the first members.
  • The increased rewards gives an incentive to come back next week—just like the upcoming voting of the main FREEOS sytem.

Why do I need to hold on to half of my AirClaim rewards each week?

  • Holding half of your rewards gives you just enough to pay for the first subscription fees to enter FREEOS. But since half can be kept, given or sold, it provides other benefits—including ways for other latecomers to enter the FREEOS ecosystem.
  • Latecomers may wish to come in part way through the AirClaim process, but as each week's rewards increase, requiring half of the previous week's rewards meaning latecomers will have to buy their way in. And since each week will cost more to buy in, this will increase the urgency to act.
  • It is hoped that this dynamic will both give a starting price to the FREEOS token, and a viral marketing buzz to onboard enough users to create a vibrant and dedicated starting community.

How do I pay the annual subscription fees to enter Freeos?

  • First you will need to have an EOSIO-based account. This can be obtained through a number of sources.
  • Then you will need to go to a supporting exchange to purchase FREEOS, or one of the supporting subscription coins, for the subscription fee. (Supporting Exchange list upcoming)
  • Once you have the total required for the subscription fee in your account, you can access the Freeos Governance dApp. Here you can pay your subscription fee which will allow you to access and engage in the next voting iteration—and all others for an entire year.

How does Freeos indefinitely pay for itself? Is it a Ponzi-Scheme?

  • Freeos has the potential to indefinitely pay for itself through a system of inflationary, and deflationary controls—as well as providing an entry cost into the system that creates a base value. Additionally, a system that emulates a "foreign reserve pool" helps the community with a growing pool of stable cryptocurrencies that can be traded for open-market FREEOS tokens. These mechanisms are designed to parallel existing economic systems—only controled by the people, not a central banking authority.
  • Ponzi-Schemes—and pyramid schemes—require an influx of new particiapants to pay to the existing members until there are no longer new participants—and the scheme collapses. Freeos does not depend on new participants to pay any exisiting members to enter. In fact,the community may vote on indirect ways to discourage new members from easily entering—and this may be economically sensible at times.

Why does FREEOS have subscription fees? Shouldn't FREEOS be "free"?

  • FREEOS requires membership fees in the same way Bitcoin miners require continuous investments into new ASIC mining equipment, or how Proof-of-Stake coins require coins to be "locked up" to provide a type of "stake" in the system and to ensure automated bots do not take over (Sybil Attacks). Additionally, having a membership fee provides a base value cost. Just as the cost of mining equipment and electricity costs create a base value in Bitcoin or Ethereum. This base cost ensures that there is a net value—incentivising participation in the network.
  • FREEOS also is structured so that the membership costs are recouped (in the value of FREEOS) through only a portion of a year's rewards.

What do voters vote on?

Economic controls for the Freeos economy such as the weeky inflation rate, the subcription cost (in FREEOS tokens) to enter the community, triggering a trade of the reserve pool in exchange for open-market FREEOS, distribution of the influencer and charity pools.

Why wouldn't the voters always vote the inflation rate to the maximum value? Like 100%, 200%, 5000%?

  1. Voters will have strong limits on the inflation rate each week that are set by the immutable blockchain code of the smart contracts of the system. There will be rules that increase the inflation cap, depending on growth into the community, but there will always be a conservative upper cap.
  2. Additionally, some of the survey questions are designed to ask the community's opinion on the price trajectory and is reflected back to the community. This way to inform the voters before they vote helps each participant know what is widely perceived as being healthy for the economy. Since the final vote needs to be ratified by the collective, it is hoped that rampant inflation will be discouraged by an informed group—especially if the FREEOS token's value is falling.

If FREEOS is minted every week, how can it be deflationary?

There are a number of deflationary mechanisms that the voters can employ.

  • The subscription cost (in FREEOS) is controlled by the community. Lowering the cost encourages more people to enter (as they hope to receive rewards). These subscription fees are paid in FREEOS—but these FREEOS tokens are destroyed as soon as the new user pays.
  • The community can also trigger the reserve pool to get traded on the open market in exchange for FREEOS tokens held by traders. Not only does this signal buying (which may further signal traders to buy for any upswing), it results in the purchase of large quantites of FREEOS. These FREEOS tokens are then also destroyed to add an additional deflationary aspect.
  • Ideally, these two deflationary mechanisms increase the price of the FREEOS token on the open market, attracting new members to join to obtain this rising token, with those new members further triggering the automated destruction of these new tokens used to pay the subscription fees.

What if FREEOS becomes too deflationary and the subscription fee rises out of reach for most?

  • Since new members can pay for entry in either FREEOS tokens, or in other EOSIO-based stablecoins (that are pegged to existing fiat currencies), there is a choice in how to pay. If the cost of FREEOS gets too high, users may wish to pay in stablecoins. This has the additional benefit of growing the reserve pool—useful for times when the price of the FREEOS token is dropping.
  • Additionally the FreeDAO group has the ability to receive Vouchers (conditional on new users joining via the FREEOS token method). These Vouchers can be given away, or bundled in workshops designed to teach people how to use cryptocurrencies and the FREEOS system.

What is FreeDAO and how is it involved?

  • DAO is concept in the blockchain world known as a "Decentralised Autonomous Organisation" with its rules of operation built on immutable smart-contracts. FreeDAO is the organisation that is building, operating, maintaining and extending the FREEOS system. This organisation exists to build collaborative tools that engender greater freedoms in human society. We exist to create digital "commons" that can be utlised by as many people as possible to enrich human life in greater ways.
  • DAOs exist on the blockchain, and as such, have no centralised base of operations. They are not registered in any country or jurisdiction (at the present moment), and represent a non-local association of individuals that hold certain digital assets related to FreeDAO. These assets allow the members to vote on decisions and to get compensated towards a living wage to help "free" up their efforts to further create more tools for humanity.

Is FreeDAO a charity?

  • FreeDAO is not a registered charity, but it is a charitable DAO. FreeDAO may receive economic benefits from the FREEOS system, but these are not intended to make the organisation—or any individuals part of it—rich. Just free to dedicate their time to contribute.
  • FreeDAO members are intending to get paid by our efforts, but that depends on the value we bring to the community. Essentially, the systems we build are designed to only bring FreeDAO value if they bring value to others.

Can I join FreeDAO?

  • Currently, FreeDAO is only for active contributors to the FREEOS system. We do encourage anyone that has skills in blockchain development, marketing, economics, or even those who wish to asssit financially, to query us here.
  • Future development of FreeDAO will allow for conditional—but fair—ways to onboard qualified contributors into FreeDAO.

What can you use the FREEOS token for?

  • Initially, it is used for entry to the FREEOS system. As it also may have value on exchanges, it may be used to trade for other cryptocurrencies, some that have mutually perceived value on a worldwide scale. This tends, however, to be very speculative and can be dependant on a number of uncontrolable factors.
  • FreeDAO believes that the subscription fee payments, and market speculation is just the beginning of providing value to FREEOS. FreeDAO is dedicated to encouraging the FREEOS token to be used in many other ways to purchase physical and digital goods, as well as education and will be using any proceeds to develop and encourage more real-world use cases. As a token that can be freely spent and a high-transaction speed, it is hoped that wide adoption can be encouraged through clever means.

Why EOSIO and not Ethereum, or any other blockchain platform?

We are not dear to any particular platform, but chose EOSIO for the speed, relative ease-of-use, and free transactions. We believe that these qualities are required to onboard new members into using the blockchain—and therefor FREEOS.

You mention EOSIO, but there are many chains. Which chain are you targeting (EOS, WAX, Worbli, TELOS, BOS etc.)?

  • We have not decided (yet), and are looking into a number of factors before deciding. As mentioned above, we are not dear to any particular platform and are looking at what would be best for our users based on a number of criteria.
  • If you belong to any of these organisations, and wish to reach out, please query us here.

When do you launch?

  • We are intending to launch the AirClaim in the final months of 2020. The vast majority of our code is complete for this system and is nearly ready. Any potential delays are related to testing as we want as secure and robust of a system as possible for launch.
  • The Governance dApp is intended to launch 15 weeks after the AirClaim. Most of the main systems have also been developed and are also requiring further testing, and some minor tweaking.
  • If you are a developer and/or have experience auditing smart-contracts (ideally EOSIO) and wish to get involved, please contact us here.
  • If you wish to contribute financially, please contact us here.
  • Contributions—of either time or money—will help speed up, and strengthen the development process and would be greatly appreciated.

Is Freeos rooted in Modern Monetary Theory (MMT) or Austrian Economics?

Both. Neither.

  • Freeos has some similarities with Modern Monetary Theory but flips the script on a number of concepts. Instead of a government being a monopoly that forces taxes to provide value to the currency, Freeos makes a case for incentives driving the demand into the system. Instead of the current MMT "stick", Freeos proposes a "carrot". Instead of a government, there is the FreeDAO group that is incentivised to encourage development, service the community & increase involvement in order to receive funds and therefore exist.
  • Unlike some of those who adhere to Austrian Economics, fixed resourced based currencies are not proposed with Freeos, although it is not FreeDAO's opinion that the government (or FreeDAO) should not hold a monopoly on the matter of currency supply. It is agreed that the data indicators (such as price, inflation rates) that can provide knowledge surrogates to further inform the entire community. These indicators will be reflected to the Freeos community through the Dashboard in the Governance dApp—in addition to the data provided from the survey questions that give knowledge about consensual intent.

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We thank you for your support in any contributions  towards the development and distribution of FREEOS.