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Kurt Wallace: This is Kurt Wallace and our guest today on Rare is Xavier Hawk, he is the founder of Permacredits and Xavier thanks for being with us today on Rare.
Xavier Hawk: Hey thanks Kurt, I really appreciate it.
Kurt Wallace: First off Permacredits is a kind of a crytpocurrency but its also involving permaculture and other types of communities. Could you give us an overview of what Permacredits is?
Xavier Hawk: Permacredits is a local currency for the global permaculture movement. And what that really means is that no longer are we delegated to our nation or our communities to be able to trade value any longer. Now we can do so globally. With the advent of Bitcoin we have the technology to be able to do instantaneous transfer of exchange or payments internationally at fractions of a second. With what we do with Permacredits is we make it so that everybody who have similar values, like regenerative enterprise, triple bottom line businesses, taking care of people, planet and the profits.
In my travels throughout the world I’ve found that most people are very much similar. They care about their families, they care about their children and permaculture is a way we as a civilization are going to move forward if we do so at all. So, it just made sense to me to create a currency that would espouse those values that we all share around the planet that would exchange value and create abundance and innovation in the fields of permaculture. So like sustainable development, clean energy and of course permaculture-agriculture.
Kurt Wallace: Now are Permacredits the same as Bitcoin, they’re just marketed towards these types of categories or is there a different angle on how its distributed or used or applied, that sort of thing?
Xavier Hawk: Right so its not a copycat of Bitcoin. In fact it is what’s called Bitcoin 2.0. When Satoshi Nakamoto first revealed Bitcoin or explained it to the world he said that this is something that will be able to do a great many more things than simply be a currency. But since people understand currency right now that’s the best way to develop it. But really there are a number are a number of options that Bitcoin is capable of doing that the code for Bitcoin does not. But there are platforms built on top of it such as Counter Party and Master Coin that open up these higher functions of the blockchain. Meaning you can create dividends, you can create callable assets, you can use them for voting and time stamping creating an open ledger and really the time stamping an open ledger aspects are the biggest thing that factor in our use of the blockchain. So, what we’ve created is a Bitcoin 2.0. It’s a digital asset or a digital token that gets its value from A asset back in the form of businesses and precious metals and a basket of currencies and commodities and it also provides a mechanism for people to do international and global exchange.
Kurt Wallace: How is it tied to a commodity or asset?
Xavier Hawk: There’s a number of phases in our roll out. But in the ultimate fruition of what things are going to look like is that people are going to purchase Permacredits with either fiat or Bitcoin. And that money that they spent to purchase those credits will go into a central what’s called a smart contract enabled wallet. So, it has to have specific functions fulfilled for the wallet to open. So, nobody has access to it. And what will end up happening is that pool of money that comes in from all the people that purchase Permacredits will get split up via a pie chart that everybody has decided on. Like 1/7th of the money goes to buying precious metals, 1/7th goes to buying commodities, 1/7th goes to buying a basket of currencies and 1/7th goes to donating to innovative businesses in the permaculture space.
Kurt Wallace: How does it sustain or keep it’s value at that point?
Xavier Hawk: Well, when you have a diversified portfolio of assets what ends up happening let’s say gold goes up and rice goes up a little bit but oil goes down. If you have a number of assets like spread across like twenty different things, the natural market you might have fluctuations in one aspect of the basket but it then gets split with 1/20th because there are 20 other things that are backing the asset. So, what ends up happening is you have a decentralized portfolio that does not suffer the same volatility as just one of those commodities or just like Bitcoin itself which is purely speculative.
Kurt Wallace: Now would Permacredits be considered somewhat like a stock? Are their potential dividends to Permacredits?
Xavier Hawk: Not at all. In fact 100% opposite the case. It’s not stock, it’s not a hedge fund, it’s nothing like that. It’s really the iteration of what we’ve all considered money in the past. It’s an exchange of value but the recognizance or recognition of the fact that when we take part in the system. Like the Federal Reserve Note for instance, when we take part in that system we’re trading our sweat, our equity, our calories, our passion, our hours for a token that’s a piece of paper that we trade to somebody else for something in return. Well, that act of trading that token, that federal reserve note really feeds the entire system. And therefore we have a stake in A what that system does, how long it stays, how much confidence we have in it. And currently many people around the planet are using systems that feed war, debt, death, debt and slavery, right? But now we’re given the opportunity to be our own federal reserve and having a monetary unit that we all collectively decide on through a self governance app. How it’s managed, what it funds, whose it lent out to or donated to. And how it develops. So, we really take the federal reserve system and make it open source and let everybody be a part of it.
Kurt Wallace: Now the federal reserve is actually a lender. It has the ability to inflate currency and also regulate interest rates. In terms of Permacredits you’re saying that when someone purchases a Permacredit, that purchase actually goes and is an investment in a variety of different areas. That there’s money that’s being put into business and commodities, is that correct?
Xavier Hawk: Yes, except for that fact that it’s not an investment. Because the people themselves do not get any, people don’t get dividends. You cannot use it as a speculative instruments because the price is stable and it’s designed to not increase or decrease in value. So, its not an investment because you’re not getting paid dividends for purchasing Permacredits. What you are getting is the ability to access the governance app and make decisions on how the foundations that runs the whole currency operates. And then also you’re getting an actionable asset or trading instrument.
Kurt Wallace: I see. And then the Permacredit is actually applied the purchase of the Permacredit is applied to different businesses? Do the businesses receive some investment money or some part of that Permacredit purchase? How does it actually translate to the businesses that are in the ecosystem?
Xavier Hawk: Right, so let’s say everybody decides the businesses that are seeking funding are going to comprise 1/7th of the backing of the Permacredits. What ends up happening is those business come through the kickstarter style presentation pitch. And they say you know this is the business plan, this is what we have yadda yadda. And then we also plan on donating back 10% of our profits into Permacredits. So, what then everybody in the ecosystem votes on each of those. And they do so with voting credits or voting token. And they decide which of those businesses are gonna get funding that round our that issuance. And so those businesses are then given a grant or donations to continue on or build that business or do whatever it is that they are seeking to do that the community has approved. There’s a vetting process that involves many steps and layers. But just to keep it simple now, so then they get those funds automatically given to them by the community. And then they begin operations and then we have also a number a mitigating risk factors that if they are failing or don’t succeed where we recoup the money that was donated.
But what ultimately happens is they become successful and then they start donating back into the Permacredits ecosystem. What we do, what makes us very unique is that we’re able to gage a persons merit in the system. Meaning let’s say you’re actively involved in the system you’re up voting things, you’re taking part in all the comments and conversations. You help bring people referrals and your friends rate you and you get a lot of merit ratings and merit points. And if you have a bunch of merit points but you’re not necessarily someone who holds a lot of credits you’d get voting tokens equal to your merit points. So, what this makes possible is someone having you know maybe 10 credits but a lot of merit they’re really involved, they get a lot more say, a lot more voting power than somebody who might have a million credits but doesn’t do anything. So, it’s really revolutionary in so far as we have created an algorithmic metric process that can determine a persons true value and merit in the system and reward them accordingly. So, it’s not what a call proof a stake or basically like I have this many dollars therefore I have more say.
Kurt Wallace: I see, okay. In terms of getting involved at this point are Permacredits available? Are there people in the system? And are there businesses applying to be part of the system?
Xavier Hawk: Right so we’ve got a number of business all like wow we can’t wait for this to happen. We’ve got a line of those. And we we’re at with development of the application is we are about to do what’s called a presale and sell what are called precredits and what those give you is the ability to come into the system, test it, work it out with us. Determine what consensus means. How much a quorum vote – how many people constitutes a quorum. Come into the system and help design with us and when we go live you will get Perma credits equal to your precredits one to one.
Kurt Wallace: When are you planning on doing this presale?
Xavier Hawk: We’re looking to have that be going in September for a month long.
Kurt Wallace: Okay great, how can someone apply to be a part of it then at this point?
Xavier Hawk: I would caution anybody who want to be a part of it to understand cryptocurrency first, very well. I do not want people entering into the system that don’t understand crypto and how it works. If they want to learn they can look up Bitcoin and start taking part in all the discussions that are happening in this space. But I would also say you know come to Permacredits.com and or .org and sign up on the email list. I put out messages maybe once or twice a month and kind of keeping everybody up to speed and where the progress is and what we’re going through. And then also on facebook and twitter finding us there.
Kurt Wallace: What industries are going to be involved in Permacredit as you see it at this point? What types of businesses and industries that real practical businesses?
Xavier Hawk: Yeah, we’ve got an app company that’s wanting to do a Permaculture app that’s sort of a gamified teaching tool and how to take cities and turn them into zero waste net plus cities. We’ve got Eco villages, we have land trust initiative. We’ve got a guy who does spin farming, which is basically taking people’s backyards and renting them out and turning them into production gardens. And then taking those organic vegetables and selling them to local restaurants. So, this is happening in like Toronto and L.A. big municipalities and civic centers and their making lots and lots of money doing this and it a very little investment. So, yeah we have a number projects that are seeking to do this. And also, projects in Africa and India and in Uruguay.
So, our big focus is the development world and being able to move quickly with new technologies and clean energies. And there’s another fella whose got a gasifyer company who wants to get funded through here. He creates portable gasifies that work much more efficiently. So, yeah the desire on the part of the businesses is there and what we get to do is market to users. Like hey this is a great new currency that you can use, here why you should be confident in it and here’s why it works and how easy it is. So, that’s really like our goals here.
Kurt Wallace: Xavier Hawk thanks for being with us today on Rare.
Xavier Hawk: Hey Kurt thank you it was a pleasure.