Description of Energy Money (EM)

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v. 1.10 (01/02/2019 - 19/01/2026, 21:50)

1. Introduction: Philosophy and Goals

Energy Money (EM) is a macroeconomic financial system developed as an integral part of the economic model of the Society of the Future (Axionomics). Its main goal is to restore money to its original, true meaning, making it a direct, stable, and honest equivalent of human labor. The EM system is designed to eliminate the fundamental defects of the modern financial system: inflation, debt slavery, and speculation.

The primary function of money is to serve as a universal and, crucially, stable equivalent of goods and services. Modern fiat money, by its nature, lacks the characteristic of stability, meaning it is not money in essence, but merely a simulacrum of it, a tool for redistributing wealth in favor of emission centers. EM solves this problem by tying value to an unchanging, fundamental quantity – the energy expended by a person in the process of creative labor.

The philosophical basis of EM is the principle that only labor possesses true value. Natural resources are the property of Nature and cannot be private property. Humans own not a material object, but only the creative energy invested in it.

The monetary unit of the system – "tavro" (Ŧ) – is a universal, stable, and backed medium of exchange.

2. Key Principles

2.1. Digital Format

Money primarily exists in digital form within a single Operating System, which reduces costs and makes transactions transparent.

2.2. Personalization and Transparency

Unlike impersonal fiat currencies, Tavro is a personalized digital entity. Each unit of currency carries information about its origin.

Bill Passport and Unique Code. Each digital bill has a unique serial number (cryptographic identifier). This makes counterfeiting impossible.
Theft Protection: Thanks to the unique code, all money is "registered" when it is in the owner's wallet. It is impossible to steal: in case of unauthorized transfer, the transaction is easily traceable, and stolen bills are blocked and returned to the owner. Theft loses its economic meaning.
Origin History ("Bill Memoirs"). The system stores a complete history of each bill's life cycle based on NooN technology.
Who emitted: The bill's code forever embeds information about who created it (a specific person or enterprise) and for the production of which specific good or service it was issued.
Path of Circulation: A user can view the "memoirs" of their money – whose hands it passed through before reaching them. This creates a new level of social connectivity and trust.

2.3. Denominations and Structure

For convenience of calculations, a decimal system for dividing Tavro has been introduced:

1 Tavro (Ŧ) – Base unit.
1 Rez = 1/10 Tavro (0.1 Ŧ).
1 Yon = 1/100 Tavro (0.01 Ŧ).
1 Bit = 1/1000 Tavro (0.001 Ŧ).
Range of digital bill denominations: 1, 2, 5, 10, 20, 50, 100, 200, 500, 1000 Tavro, etc.

2.4. Smart Splitting

For convenience of calculations, a decimal system for dividing Tavro has been introduced:

When making a purchase for an amount not divisible by the existing denominations, the system performs automatic splitting and re-issuance.

Example: If you have a 100 Tavro bill and you pay 45, the system automatically cancels the 100 bill and instantly issues change for you (50+5) and the payment to the seller (20+20+5).

Important: New bills inherit historical data (issuer ID and history) from the "parent" bill, maintaining data chain continuity.

2.4. Emission Mechanism

Commodity Backing. EM emission is strictly decentralized and tied to real production. Money is not printed by a Central Bank "out of thin air"; it is created by the producer at the moment of creating a socially useful product.

Standard Emission (Upon production). When an enterprise or artisan produces a good, this good undergoes evaluation and enters the OS catalog. At this moment, the producer's account is credited with an EM sum equal to the approved value of the good.

Formula: Product in stock = Money in account.

Backing: Every Tavro in circulation is backed by a specific good awaiting a consumer.

Credit Emission (Advancing). Interest-free lending is used to launch new productions or major purchases (housing). Credit is society's trust in the borrower's future labor. The source of credit is the accumulated savings of other citizens ("Savings Cloud").

2.5. Labor Backing

1 "tavro" is equivalent to 1 hour of labor of the lowest qualification. This ensures absolute currency stability, as its value does not depend on volatile material assets or speculative markets.

2.6. Zero Inflation

In the EM system, inflation is technically impossible. The money supply is always strictly equal to the total value of all available assets. If a good is consumed, spoiled, or disposed of, the corresponding amount of money is withdrawn from circulation (burned) through the depreciation mechanism. It is impossible to earn income from usury.

2.7. Circulation Stimulation

A special fee is applied to funds lying idle beyond a reasonably necessary amount. This encourages the transfer of capital into the real economy through public Mutual Aid Funds.

2.8. Depreciation

System Cleanup. Depreciation is a mechanism for the gradual withdrawal of excess money supply, corresponding to the natural aging and wear and tear of goods.

2.9. Demurrage

Money must work. If funds remain in an account without movement beyond the established savings limit, a negative interest rate (depreciation fee) is applied. This encourages investing funds in economic development or spending them, supporting demand.

2.10. Burning Algorithm (FIFO Method).

When repaying loans or writing off depreciation, the "First In, First Out" (FIFO) algorithm is applied.

The digital bills that were issued earliest are the first to be withdrawn (burned) from circulation.
This ensures a constant renewal of the money supply and guarantees that "fresh" money, backed by current goods, is in circulation.

2.11. Interest-Free Lending

In the SoF, there are no commercial banks. The Operating System performs their function. Any loan is issued at 0%. The borrower returns exactly the amount they borrowed.

Section 3. Basic System Architecture

3.1. Types of Labor and Products

Socially Useful Labor (SUL): Labor whose results (goods or services) are in demand and can be exchanged for money. Only SUL creates value in Axionomics.
Socially Useless Labor (SUL): Labor whose results are not currently in demand (e.g., overproduced goods or overpriced goods).
Gross EM Mass (GEMM): The total residual value of all fit-for-use products created by productive socially useful labor. The value of services is not included in GEMM, as a service has no lifespan and is illiquid.

3.2. Separation of Concepts "Value" and "Price"

The EM system introduces a clear distinction between objective value and market price:

Labor Value (LV): Basic term. This is the objective, measured quantity of socially useful labor (in "tavro") expended in creating a product. It is a calculated value, the foundation of the economy.
Final Product Value (FPV): The final product value is the sum of the values of resources and labor invested at all stages of production (raw material extraction, semi-finished product manufacturing, assembly). This is the cost price of the product.
Retail Product Price (RPP): A market, contractual value. This is the final amount in "tavro" that the end buyer pays for the product. It is formed based on FPV but includes markups (profit) and logistics costs.
Residual Product Value (RPV): A calculated value reflecting the portion of FPV that has been preserved in the product, taking into account its wear and tear and obsolescence.
Liquid Product Price (LPP): A market value. This is the real price at which a good can be immediately sold. Used to calculate the credit limit.
"Shrinkage Coefficient": The percentage by which the value of a good falls immediately after purchase. It is embedded in the product's unique identifier to correctly reflect its RPV after it leaves the store, as the price included profit, retail seller services, and other markups that are not part of the product's labor value itself.

3.3. Subject Accounts

For each subject — natural person (NP) or legal entity (LE) — the system creates two types of accounts:

Operational Account (OA): For daily settlements, income receipt, and expenditures; for legal entities, it also serves as a place for storing working capital.
Savings Cloud (SC): A virtual account, the sum of which is equal to the total residual value (RPV) of all declared assets of the subject. It serves as a source for interest-free auto-lending.

3.4. Mutual Aid Funds (MAF)

These are decentralized public funds at the cluster, regional, or industry level. Their functions:

Depositing: Storing surplus funds from operational accounts to protect them from passive capital fees.
Investing: Financing expert-approved startups and large infrastructure projects.
Insurance: Holding insurance and pension contributions for subsequent payouts.

4. Emission, Circulation and Depreciation

The life cycle of money in the EM system is fully transparent and tied to real assets.

Emission by Producer: New money is emitted not by a central bank, but by the producer themselves at the moment of creating a new, socially useful product. At the moment a new product is registered in the OS, an amount equal to the FPV is credited to the producer's Savings Cloud.
Withdrawal via Depreciation: Money is automatically and weekly withdrawn from circulation. Every Sunday at 3:00 AM, the OS re-evaluates (depreciates) all assets in the system. The amount by which the residual value of assets has decreased is automatically debited from the corresponding Savings Clouds. Thus, the total money supply is always equal to the total residual value of all material and intellectual goods.

5. Financial Operations

5.1. Lending

Auto-loan (loan from one's own Savings Cloud)

Any subject can instantly and interest-free lend to themselves by transferring funds from their Savings Cloud to their Operational Account, collateralized by their own property.

Base Limit: The loan amount is limited by the liquid price (LPP) of the assets in the Cloud (usually up to 60% of the RPV).
Repayment: The loan is repaid with amounts sufficient to compensate for the regular depreciation of the savings cloud, which occurs every Sunday at 03:00, as the credit limit decreases at that moment.

Intelligent Creditworthiness Analysis

In addition to collateral security, the Operating System (OS) conducts an intelligent analysis of the borrower's creditworthiness to minimize risks.

For natural persons: The system automatically calculates and displays in the user interface the recommended and maximum auto-loan limit. This limit considers not only the liquid price of assets but also the dynamics of income and expenses over the past few years. To assess default risks, the algorithm also analyzes the total income of the family cluster, its composition, and financial burden, relating all this to the living optimum. Based on this data, the system may offer a limit below the collateral value if it sees potential risks to the citizen's financial stability, thereby protecting them from excessive debt burden.
For legal entities: A similar multi-factor analysis is applied to organizations. The OS evaluates financial flows, income stability, operating expenses, debt burden, and business reputation history. Based on this comprehensive data, the system forms a dynamic credit rating and determines the optimal auto-lending limit, which balances business development needs with minimizing risks for the entire economic system.

In case of detection of property fraud (absence of declared property in the actual use of the owner), the debtor faces an investigation with forced compensation of the shortfall.

Loan from a Mutual Aid Fund (MAF)

Used to attract investment in startups when own funds are insufficient. Conditions: no active auto-loans and approval of the business project by an expert commission of the cluster. For large projects, using a joint-stock company is recommended.

5.2. Investing and Storing Funds

Depositing in MAF: Transferring funds from an operational account to an MAF for a specified period to protect against passive capital fees and for targeted savings. Early withdrawal is subject to a penalty fee.
Investments in Startups/JSCs: Purchasing shares in new enterprises through an MAF or a stock exchange.
Investments in one's own business.
Asset Investments: Purchasing real estate, antiques, etc. This method has a progressive luxury tax as a limiter.

6. System of Public Contributions and Fees

Payments in the SoF are transparent, targeted, and automatically collected via the OS.

Public Contribution: A basic payment on added value (the difference between selling price and residual value). It has a progressive rate and goes to support common institutions (science, education, administration).
Passive Capital Fee: Levied on surplus funds in operational accounts exceeding the "living optimum" for 3 months. Goes to support the security system.
Luxury Tax: A weekly fee on owning luxury items.
Educational Contribution: A weekly contribution from parents for the upkeep of the preschool and school education system.
Cluster Membership Fee: A contribution from cluster members for its development, science, and administration.
Other Fees: Transport (infrastructure), excise, resource.

7. Ownership and Natural Resources

Principle of Nature's Supremacy: All natural resources (land, water, minerals) cannot be anyone's property. The SoF exercises responsible use.
Ownership of Invested Labor: Ownership rights arise only for products created by humans and extend only to the energy costs (labor) invested in their creation. Instead of the label "Price," the product will have the label "Energy Expended," which gradually changes society's worldview.

8. Pension Provision

Main System: A solidarity family system where adult children support their incapacitated parents. This stimulates birth rates and responsible upbringing.
Additional System: Voluntary pension savings in a Mutual Aid Fund. This is the main tool for childless citizens.

9. Transition Period: Step-by-Step Launch Plan

The transition to the EM system is a complex, managed process consisting of clear, sequential stages.

Step 1: Total Inventory and Valuation

The first step is a complete inventory and valuation of all material, intellectual, and cultural assets owned by citizens and organizations.

Valuation Mechanism: Initial asset valuation is performed considering their wear and tear, based on their market price in the obsolete financial system, which is then converted into a labor cost equivalent ("tavro").
Entry into OS: All valued assets are entered into the Operating System and form the initial content of the "Savings Clouds" (SC) for each subject.
Inventory and Cadaster: A full inventory of all land plots, water resources, and deposits is carried out. All natural resources are declared protected property of the SoF.
Responsible Use Agreements: Instead of ownership rights, agreements are concluded with end-users, specifying terms and clear obligations.
Succession Rules: Direct heirs, in case of the current user's death, have a preferential right to conclude a new agreement.
Public Control: Control over the targeted use of resources is carried out by managers elected by the population.

Step 2: Conversion and Account Activation

Currency Conversion: Existing fiat currencies in accounts and in cash are converted into "tavro" and credited to the "Operational Accounts" (OA) of citizens and organizations.
Start of Circulation: From this moment, both types of accounts begin to fully function in the SoF economy, and all operations are conducted in "tavro."

Step 3: Management of External Currencies and the SoF International Monetary Fund

Establishment of SoF IMF: To manage the converted reserves of fiat currencies, a special institution is created – the International Monetary Fund of the Society of the Future.
Management Strategy: The task of the SoF IMF is not storage, but a balanced and strategically verified exchange of the old world's inflating currencies for real, non-inflationary assets: precious metals, technologies, cultural and archaeological values, promising patents.
Risk Minimization: The financial authorities of the Order are obliged to prevent situations where the reserves of old currencies in the SoF IMF exceed the real value of goods and assets remaining in the issuing countries. This protects the SoF economy from importing foreign inflation.

Principle of Voluntary Entry and Incentivization: A key condition for the transition to the EM system is its smooth and voluntary nature, based not on coercion but on incentives:

Voluntary Declaration: Declaring personal or corporate property in the OS for its valuation and the formation of a "Savings Cloud" is a personal choice for everyone.
Direct Incentive: Your credit limit for obtaining interest-free auto-loans directly depends on the volume of declared assets (i.e., the size of your Cloud). The system does not punish for refusal but generously rewards participation.
Mandatory at Maturity Stage: Upon reaching a critical mass of EM participants, doing business in the old paradigm becomes impossible. If one conducts business in the old money paradigm, then taxes will have to be paid to the old states, meaning we will be building new and feeding old. Therefore, the transition becomes an economically driven necessity for all participants in the SoF economy.

10. Principles of Pricing and Market Mechanisms

The Energy Money system, by linking emission to labor, does not abolish market pricing mechanisms, but makes them fairer and more transparent. Pricing occurs in the same way as in any healthy economy, but the key difference lies in the points of money emission and withdrawal.

Value Formation: The retail price of a product or service is formed based on the sum of all costs for its creation, including:

Direct labor costs: The value of labor invested at all stages of production (raw material extraction, processing, assembly, intellectual contribution).
Service costs: Costs for logistics, marketing, distribution, and other related services.
Producer and seller profit: A markup that the producer and seller include in the price for development, investment, and remuneration.

The fundamental difference from other developments of labor value of money is that only the creation of a new socially useful product (SUP) leads to the emission of money. The value of services and the profit embedded in a product do not create new money, but only redistribute existing money within society.* Valuation of Complex Labor: The valuation of intellectual, creative, or highly skilled labor is determined by market mechanisms through the competence coefficient (Ѧ) and the quality coefficient (Ѡ). An hour of work by a neurosurgeon or a brilliant programmer inherently costs more than an hour of unskilled labor. These coefficients are determined and confirmed through a licensing system in the OS and, more importantly, by market demand. If a high price is willingly paid for a service, it means society values this labor as more valuable. Thus, healthy competition and an incentive for skill development are maintained.

Price Stability: Special attention is given to the pricing of Goods for Constant Consumption (GCC), as their cost influences the calculation of citizens' minimum income. The system is designed so that market mechanisms regulate prices independently. In the event of producer collusion and unjustified price increases, a reduction in public demand will quickly return prices to an equilibrium state, as the first producer to restore a fair price will gain a competitive advantage. Intervention by the Council of Ministers to regulate prices is an extreme measure and is only possible in the event of a systemic crisis, which is unlikely in this model.

11. Economic Effects and Goals

The ED system creates several powerful incentives that change economic behavior:

Rapid Saturation Mechanism: By obtaining a loan against new property, a citizen can quickly acquire all necessary goods (housing, transport, appliances), fulfilling basic needs.
Incentive for Quality: Citizens benefit from buying the most durable and reliable goods, as they retain their residual value and credit potential longer.
Incentive for Producers: Demand for quality generates supply. Producers are forced to compete not on price, but on the reliability and lifespan of their products.
Reduced Consumerism: When basic needs are easily and durably met with quality items, the incentive for thoughtless consumption disappears, which lessens greed and envy.
Development of the Creative Economy: In a world of durable goods, demand for tuning, customization, and aesthetic updates grows, creating new jobs.

12. Economy at the Community and Cluster Level

The ED system is high-level but does not negate the right of communities and clusters to create their own internal accounting and motivation protocols.

Freedom of Choice: Each community can either use the basic ED system or implement its own detailed system for tracking contributions based on the tokenization of actions and reputation.
Synergy: Such a two-tier system allows combining macroeconomic stability (ED) with flexibility and ideological diversity at the micro-level.