Mission
Statement
Why use Millennium Dollars™?
What is Virtualmoney.com?
The Licensed Technology
The Affiliates
The Business Model
The Benefits
How to Participate in Viral Network Marketing
The Public Corporation
The Transparency Policy
The Investment Policy
The Currency Reconciliation
Corporate Management
The Technology Manager
Customer Service
The mission of Virtualmoney, Inc. (the Company) is to issue an asset-backed private currency, that will fulfill the social contract of money; such that, it will be worth as much tomorrow as it is today. Concurrent with issuing the private currency; the Company will also provide the monetary conversion, transfer and accounting services, that will be required for the use of the private currency in the marketplace. The success of the private currency will allow consumers, businesses and the government to substantially protect themselves from the destructive effects of inflation and deflation.
It has been said; that the flutter of butterfly wings in Brazil, can set off a tornado in Texas. In recent decades, scientists have developed the new sciences of Chaos and Complexity. These sciences deal with systems that can be viewed as chaotic, or complex; often referring to the weather, or the economy, as examples. One thing, that both Chaos and Complexity agree upon, is that very small events can lead to major consequences.
We are reminded of this, every time someone asks, "Why should we use your private currency? After all, the inflation rate is low, and the impact of inflation from day to day is minuscule." While this is a valid question; our life spans are not measured in days alone, but in weeks, months and years. While we are conscious in the present moment, we live in and through Einstein's space-time continuum. As such, a relatively small event occurring on one day, and then being repeated day after day; can have an enormous cumulative effect on our well-being, as we move through our lives.
Our economy is a complex system. Our money supply is the life-blood that nourishes our economy, by circulating money through our monetary system. Small events can have major consequences for our monetary system. By designing the private currency, so that it is self-adjusting for inflation and deflation; we can initiate major changes in our economy; which is to say, that our economy will become healthier and more robust.
But every journey begins with a single step. By using a private currency, that is self-adjusting for inflation and deflation; we can see each adjustment ripple through our marketplaces, through our financial contracts, through our wages and savings, through the assets held by our financial institutions, through every facet of our monetary system; thereby converting our economy into a complex adapting system. By becoming a complex adapting system, our economy will be less prone to financial disruptions. The science of complexity tells us that all of this is possible. Nonetheless, to achieve all of this; we must first begin to use this new currency, one day at a time.
Virtualmoney.com is the d/b/a for Virtualmoney, Inc., as well as the domain name for its Web site. The Company was incorporated in the State of Minnesota on January 10, 2000 for the expressed purpose of issuing the private currency. On January 18, 2000 the Company obtained an exclusive license to use certain technology from Real Monetary Systems, Inc. (RMSI) for the issuance of an asset-backed real monetary equivalent. On July 13, 2000, the Company filed a Form 10SB pursuant to the 1934 Securities Act. Sixty days later, the Company became a reporting (public) company. Then, in May, 2001, the Company made economic history by offering the Millennium Dollar™. The Company began to solicit market-makers for posting the Company's stock on the NASDAQ OTC shortly thereafter.
The licensed technology is the subject matter of a 1,891-page patent filed on October 6, 1999 for a number of processes collectively referred to as the Real Monetization™ process. The purpose of the Real Monetization™ process is to correct certain problems associated with the introduction of real financial instruments (mortgages, bonds, etc.) into our nominal monetary system. The Real Monetization™ process will be carried out by Real Monetary Software™. The purpose of this software is to create a conceptual bridge, so that participants in the marketplace can understand the benefits of using real financial instruments in the nominal terms they understand.
The Company's mission sometimes requires that we discuss other types of real financial instruments, which will play a role in the Company's development. For instance, it is the Company's intent over time to substantially back the private currency with securitized Real Mortgages™. However, the Company's license with RMSI is limited to using the technology for the issuance of a an asset-backed real monetary equivalent (i.e. the private currency) which is indexed to the U.S. Dollar. The Company is not licensed to originate or securitize Real Mortgages™.
As such, current plans call for RMSI to grant licenses to other Affiliates for the introduction of other types of real financial products and services. It is expected that RMSI will retain the right to use the technology for the origination and securitization of Real Mortgages™, since that was the original purpose for which RMSI was funded. While Virtualmoney, Inc. is the first of these affiliates to offer real financial products and services; nonetheless, the success of the Company will lead to the development of a financial community; that supports and encourages the success of these companies, as well as their products and services.
See: Affiliates
The business model is very simple. It assumes that people will do what is in their own best financial interest. This means that consumers, businesses and governments should embrace an asset-backed private currency, which substantially holds its value; since it will allow them to substantially protect themselves against the destructive effects of inflation and deflation over time.
The Company will begin by offering its private currency at the real par value of the Millennium Dollar™ over the Internet in exchange for U.S. Dollars (USD). The Company has committed to use the USD sales proceeds to back the purchasing power of the private currency. Then, the Company will stand ready to repurchase the private currency for U.S. Dollars, less reasonable fees for its services. (For consumers the expense should be less than traditional financial services. For merchants, these fees will be less than typical charges in the credit card industry.) The private currency will also begin to ensure the integrity of transactions in the marketplace, by being worth as much tomorrow as it is today.
To accomplish these goals; the Company will offer the monetary conversion, transfer and accounting services necessary for the private currency to function in the marketplace. The Company will generate income, and eventually earnings, by charging fees for these services and by earning interest on the currency float after the inflationary adjustment. After establishing the viability of the private currency on a retail basis with consumers and merchants, the Company will begin to work with and through the banking system to provide other financial products and services defined in Millennium Dollars™. To achieve this goal, the Company will begin to deposit Millennium Dollars™ with participating FDIC-insured banks & thrifts and SIPC-insured broker/dealer firms offering suitable financial products and services defined in Millennium Dollars™. This will allow these participating financial institutions to offer real financial products and services to the general public.
The Company will use viral network marketing to promote its product and services. This is a combination of viral marketing and network marketing, which are each very powerful in their own right. If properly implemented, viral network marketing should provide substantial demand for the Company's product and services. Nonetheless, the Company is also relying on Thomas Gresham's Law and Adam Smith's Invisible Hand. Collectively, these economic laws, among the oldest ever recorded; suggest that participants in the marketplace will do what is in their own best financial interest. The Company believes that using the Company's products and services will be in the best interests of those who participate in the marketplace. The combination of these powerful marketing concepts, and economic laws, should create substantial demand for the Millennium Dollars™.
Finally, the Company's business model is substantially different than most Internet companies for three reasons:
Instead the Company has:
Concurrently, the Company is encouraging its Members to become entrepreneurs by becoming our business partners, which is discussed in the next section on benefits.
See: Gresham's Law
See: Adam Smith's Invisible Hand
The primary benefit for individual Members, as well as society at large, is the ability to use a private currency; that will fulfill the social contract of money, by being worth as much tomorrow as it is today. This will ensure the integrity of transactions in the marketplace, thereby restoring the primary uses of money as a medium of exchange, a unit of account and as a store of value. For those who use the private currency, it will be like living in a world with virtually no inflation or deflation. If the U.S. economy thrived in the 1990s, which it certainly did; it was due to the lower rates of inflation. The economy will work best, as inflation and deflation move to zero. For this benefit alone, people should use the private currency.
However, the Company's introduction of a private currency, defined in real terms, into a nominal monetary marketplace; will provide a number of other incentives for its use. Simply stated, the successful introduction of a private currency can be very profitable for all concerned. The Company has elected to share a portion of these benefits with its Members.
Members may benefit:
a. by participating in our Viral Network Marketing Program, that will be run by our subsidiary Real Money Network, Inc.; and then,
b. by having the opportunity to purchase the Company's publicly tradable common stock at affordable prices; and
c. by earning a priority preference for a Real Mortgage™, pursuant to the terms of the Company's Real Mortgage Purchasing Policy; and finally
By taking advantage of these incentive programs that participants can earn distributions of Millennium Dollars, have the opportunity to invest in a start-up company before the venture capitalists and an expensive stock offering and earn a Real Mortgage™ purchasing preference number.
How to Participate in Viral Network Marketing:
Participating in the Viral Network Marketing Program is easy. All Members have to do is learn how to use the private currency, and then teach others. The key is getting your friends, relatives and business associates to come to the Virtualmoney.com Web site, where they can do their own due diligence. Assuming they like what they see; just remind them to name you as their "referrer," by putting your e-mail address in the appropriate slot on the application form.
An easy way to enroll people is to send them a Millennium Dollar™ via e-mail. Upon accepting your money, and entering your e-mail address; you will have added another person to your down line. If you wish to contact a lot of people, and this appears to be an expensive undertaking; then ask them to return your Millennium Dollar™ to test the system. Early-on Members should purchase a modest amount of Millennium Dollars™, until they have had the opportunity to test the system, and find the e-mail addresses of their creditors. If you are the first to introduce a merchant to the private currency, be sure to ask them to name you as their referrer.
The Company has devised this business model, so that it could share the wealth being developed by the issuance of the private currency with its Members. Our condolences to the venture capitalists, the investment bankers and those with easy access to the IPO stock; but this one is for the rest of us.
The Company has elected to make its Members its business partners. In order to achieve this goal, the Company has filed a Form 10SB with the Securities and Exchange Commission. The effect of this filing is to make the Company a reporting (public) company. As such, the Company has foregone the opportunity of doing an initial public offering (IPO). Nonetheless, publicly tradable stock will become available, since the Company's early investors will be able to remove the restriction on their stock certificates after a one year holding period. At the appropriate time, the Company will consider one, or more, secondary stock offerings, which will ultimately be necessary to properly fund the Company.
The Company is also committed to keep the price of the Company's stock affordable for its Members. As such, the Board of Directors has committed to undertake whatever stock splits as are necessary to achieve this goal. This will allow most Members the opportunity to purchase the Company's stock, and thereby to share in the entrepreneurial effort at creating wealth enhancement. The Company's first 2:1 stock split was effective on the day the Company began to sell Millennium Dollars™ to the general public. This was a significant step, since it meant that the Company was moving from a development stage company into a revenue generating company. The Company's stock was expected to begin trading shortly afterward.
See Virtualmoney at: www.Freeedgar.com
The Company's business is to issue a private currency, along with the related services required to use this currency in the marketplace. In order to succeed in this business, the Company must establish a high degree of trust with its Members. This trust begins with the Company following through on its commitments, which can best be demonstrated by establishing a Transparency Policy. The Company will provide the Members with the maximum degree of transparency it deems feasible, subject only to protecting the Members' capital and private information. Inasmuch as implementing such a policy is new to us, we will not formally define the Transparency Policy at this time; except to say, that we will do our best to keep our Members fully informed. For now, this can be achieved by posting our (a) Investment Policy, (b) Currency Reconciliation, (c) Key Statistics and finally (d) by our corporate reports and audits filed with the Securities and Exchange Commission.
When the Company sells Millennium Dollars™, the USD proceeds are the property of the Company. Nonetheless, the Company will use 100% of these funds to back the private currency. As such, the Members of the private currency should be concerned how these funds will be invested. To this end, the Company will establish and post its Investment Policy.
Upon the sale of the private currency, the Company will own the USD sales proceeds, just as the Members will then own the private currency. Nonetheless, the Company will use the proceeds from the sale of the Millennium Dollars™ to back the redemption of the private currency. These funds will be invested, thereby generating sufficient income to cover the inflationary adjustment and a real rate of interest. The funds used to cover the inflationary adjustment will be allocated to the holders of the private currency, but the real yield will be retained by the Company. The allocation of the inflationary adjustment to the Members will occur daily, as the Company posts the revised Real Par Value for each successive day. This means that the volume of Millennium Dollars™ (MR$) outstanding times the Inflationary Adjustment Factor (IAF) should equal the book value of the assets (in USD) being held to back the currency.
Real
Par Value = MR$ x IAF = USD*
*assets at book value
As a matter of transparency, the Company will provide a reconciliation of the private currency versus the book value of the assets in USD. The Company will also provide a periodic statement from each of the financial institutions holding the assets, which can be accessed from the Currency Reconciliation page.
Finally, it is expected that the Company will have to mark the assets to the market pursuant to applicable accounting rules. The results will be included in the Company's periodic filings with the Securities and Exchange Commission. The results of marking the assets to the market may be materially different from the book value. Members are urged to periodically review both the book value, and the results of marking the assets to the market. The results can be seen at www.Freeedgar.com, where the Company is listed as Virtualmoney.
See: The Currency Reconciliation
Key Statistics:
The introduction of the private currency will begin to create a real monetary system, which will allow the Millennium Dollars™ to circulate in the marketplace. The real monetary system is a network that connects all those who wish to use the private currency. According to Metcalf's Law, the utility of any network is equal to the number of user's squared. This can be expressed as:
Metcalf's
Law:
Utility
of any Network = (Number of Users)2
When there was only one facsimile machine in the world, it had little utility. Today, the number of Fax machines must be measured in the millions around the world. This creates a very valuable network for the dissemination of information.
Monetary systems also distribute information to buyers and producers of goods and services. When fiat currencies (issued at-will) are used in the marketplace, they are subject to inflationary and deflationary forces. These forces are the result of the fiat currencies violating the concept of whole numbers, which states that each and every integer must represent one whole unit. Money is supposed to represent purchasing power. But fiat currencies violate the concept of whole numbers, such that money will not have the same value tomorrow as it does today. Which is to say, that by violating the concept of whole numbers, the fiat currency also fails to perform the social contract implied by money.
When fiat currencies violate the concept of whole numbers, they create inflation and/or deflation; whereby, we begin to lose the ability to count, as we move through Einstein's space-time continuum. This disrupts the quality of the pricing information passing through our monetary system, which causes buyers and producers to misinterpret supply and demand implications. The resulting economic turbulence can be avoided; if money simply obeys the concept of whole numbers, thereby fulfilling the social contract of money. The private currency, and the real monetary system, will substantially fulfill this goal.
As a network the key thing to watch is not the current size of any new network, but rather the rate of growth. For every network begins with a single user, including Microsoft's Windows, AOL, Yahoo and the Internet itself. Successful networks have historically grown at rates that have compounded every week or month. If we were to plot the compounded growth of such a network, we would see a curve that looks like a hockey stick. At the elbow of the hockey stick, the curve tends to turn almost vertical; for at that point the growth of the network becomes exponential.
We encourage our Members, and other interested people, to follow the rate of growth of the Company very closely. For this reason, the Company will release certain key statistics (the Key Statistics) weekly, along with the rates of increase. As the utility of the resulting real monetary system increases, the capitalized value of the Company should increase accordingly.
See: Key Statistics
See: The Concept of Whole Numbers
The Company is pleased with the diversity of talent that makes up its officers and directors. Resumes can be found in the corporate filings with the Securities and Exchange Commission.
Officers and Directors:
Thomas W. Tripp,
CEO, President, Director
Robert E. Nisen, CFO, Secretary & Treasurer, Director
Constance Stack, COO, Director
Michael W. (Mac) McNeely, V.P. of Viral Network Marketing, Director
Outside Directors:
Reese Doffing, Director
Charles Kulas, Director
Kathryn Newby, Director
Michael Newby,
Director
Richard Parry, Director
Management may be contacted via e-mail at: Service@Virtualmoney.com
See Virtualmoney at: www.Freeedgar.com
For customer service, please:
See: Help
E-mail us at: Service@Virtualmoney.com
Or, post your question at the Forum
The Company can also be contacted via the U.S. Post Office addressed to:
Virtualmoney, Inc.
16910 45th Avenue North
Plymouth, Minnesota 55446
