The Anvóy Asset: Acre

Anvóy America’s new Medium of Exchange: the “Acre”

One of the most promising ways to build a better world is by leveraging the power of our purchases.  In order to support each other better (especially our vulnerable small businesses and ministries), we have created type of digital currency that can only be used in Anvóy America.  It is called Acre, which is short for milli-acre, or one-thousandth of an acre.  One Acre is currently worth about 7 US dollars.  So a dollar would be worth about 0.14 Acre.  You can send your funds to any other participating individual or organization with your own Anvóy Acre Account instantly and free of charge.  It works like other digital wallets or online accounts such as PayPal, but with some important differences and advantages.

Acre’s Value is Designed to be Stable

A major concern for any currency these days is stability.  The value of some digital currencies such as bitcoin has varied so much that many people find it too risky.  Others worry about the long term stability of the US dollar because of the massive debt and deficit spending of the US Federal government.  Since the dollar is no longer backed by gold or any other real asset, it could quickly lose much of it’s value due to inflation caused by the government printing or creating too many dollars.  The same type of devaluation is possible for bitcoin or other assets that are not backed by anything real or productive.

In order to overcome this risk and uncertainty, we have invented a new, patent-pending type of local currency that is owned and controlled by you and the other people who use it.  Anvóy America founders and settlers have agreed to create the Acre, a new medium of exchange which is based on the value of farmland in the US Midwest.  Anvoy Inc. has agreed to develop the software needed to enable them to exchange their Acre funds and maintain their account balances.

A medium of exchange is an intermediary instrument or system used to facilitate the sale, purchase, or trade of goods between parties.  –Investopedia.com

Acre’s Value is tied to the Value of Food-Producing Farmland

The value of the Acre is specifically and mutually agreed upon by everyone who buys and sells it and can never change.  One thousand Acre will always be worth the same as one “real acre” of farmland in the US Midwest.  Currently the average price of 1 acre of land is US$7,000.  That is why the Acre (which really means 1/1000th or an acre) is worth US$7,000 / 1,000 or about US$7.  Since a real acre of land is about 44,000 square feet, 1 Anvóy Acre equals about 44 square feet of land, which is the same surface area as a king-sized bed.  When you think about how much food you could grow in a garden that size for $7, farmland seems to be undervalued. 

If the price of farmland would double over time to US$14,000 per acre, then the value of the Acre would increase with respect to the dollar to US$14, but the real value of it or farm ground probably would not change.  This scenario would probably indicate that the dollar lost half of it’s value.  In other words, people with US$7,000 would lose half of their purchasing power, while a person with 1,000 Acres would not lose anything.  

We feel that farmland is one of the safest assets because it’s quantity is limited and it is used to produce food, which is one of our most basic needs.

No Interest / No Usury

The charging of interest used to be illegal because it was looked upon as an unethical way for the wealthy to exploit the poor in order to gain even more wealth and power over them.  Unfortunately “interest” and inflation are key aspects of the US banking system, which allows banks and lenders to charge interest in order to cover bank operation costs.  The goal of the Acre is to eliminate “interest” and usury.  Account owner who have a positive balance will be encouraged to offer zero or no-interest micro-loans to people they know and trust.  This will create a fluid supply of funds that individuals and organizations can use to manage their cash flow.  This is a key way that those blessed with more and help those with less.

Acre Is Backed by Your Closest Connections

Most of us grew up knowing that the US dollar is “legal tender” and backed by “the full faith and credit” of the US government.  Unfortunately, that doesn’t sound as safe and secure as it did in the past. 

Many citizens have lost confidence in a federal government because it has become so corrupt.  Throughout history we have seen all governments become corrupt and eventually fail.  When they do, their currencies become worthless.  We hope that our government can be reformed and our Constitution honored and obeyed so that our dollar can continue to be a standard, but we should not put “all of our eggs in that one basket.”  It is wise to diversify, be prepared and have at least one viable option in the unfortunate event that we need it.

Unlike the dollar, bitcoin or other currencies that are not backed by anything, the Acre is backed by something very solid.  It is backed by many good faith promises made between many close, trusted friends.  Let’s explore how it works. 

A New, IOU-based Medium of Exchange

We have invented a new type of “IOU-based currency” as the result of the need to solve a problem.  The problem was, “where to put the money.”  If we would sell a new currency, we would need to store the dollars somewhere safe, so that we could buy the currency back at a later date if the buyer no longer wanted it.  The question was, where could we store the money?  If we put it in the bank as dollars, it could become devalued.  The only asset we wanted to trust was farmland, but the cost to legally buy and sell land was too high, especially for small transaction amounts.  Finally we found a solution.  We would not take money in exchange for the Acre.  We would take an IOU or voucher instead. 

All participants start with a zero balance.  When one person sends 1 Acre to another person, their balance goes to -1 and the recipient +1.  A person can continue to pay or send Acre even though their account has a negative balance as long as they have enough Connections to cover the negative amount.

Connections and Liability Amounts

Participants make mutual promises to insure a small portion of each others negative balance, or liability amount.  We call these agreements Connections.  For example, assume that you have make 5 connections.  That means that you have 5 close friends who you trust and who trust you.  You mutually agreed to back each other up in the rare event that you can’t pay your liability amount.  You agree to pay up to a maximum amount, say 20 Acre or US$140 for each of your connections.  They do the same for you.  The sum of these vouchers would be 100 Acre or US$700.  That is the maximum amount that your account can go negative.  If you gain more connections over time your spendable balance can grow into the thousands.

There is no maximum amount that your account can go positive, but as funds add up, the account may want to convert the Acre back into dollars or some other asset.  In order to sell Acres for dollars, one or more accounts with a negative balance will need to buy it.  All account holders agree to cooperate in this manner in order to maintain the zero sum status of the total account.  Participants that desire to purchase Acre will enter requests into the system.  Those who wish to sell Acre will do the same.  If these desires to trade equal then everyone is perfectly happy.  But it the amounts don’t zero out, then account holders will be encouraged and/or offered incentives to buy or sell.  In the rare event that this is not sufficient, a few participants with either the largest positive or negative balances will be forced to trade some amount, usually less than what would zero out their accounts.  These transactions will be processed using current US$ to Acre exchange rates.

What is the Business Model?

We need to generate revenue in order to cover the cost of developing and maintaining the system and supporting all of its users.  This revenue will be provided in the traditional way via small currency exchange fees built into the difference or spread in the cost to buy and sell Acre.

Acre is a Local Institution You Can Own

The Acre currency is owned and controlled by your Anvóy America State.  Since you and people you know can become owner of the State, you can also own part of the Acre Currency Institution.  It is a key part of the whole Anvóy America vision.  It helps tie us together with meaningful Connections based on mutual trust.  Having many Connections is a good indicator of trustworthiness and this assurance can help participants qualify for many other opportunities.

We envision more useful addition in the future, such as Local Ledger backups and savings and investment accounts.  So we encourage you to start using your Acre Account today and join us as we sail on this voyage.  All you need to get started is a few Connections.

Your Anvóy Acre Account