A Metric Economic Unit (MEU) is a universal standard for ensuring price stability through a simple, and well understood money supply. It enhances economic confidence and trust in any currency that is based on it. Money supply based on MEU is fixed to the number of participants in an economy and nothing else.
MEUs stabilize money using money supply
Like Dollars and Euros, MEUs are a measure of economic potential capacity and allow people to transact with each other with minimal friction and no transaction costs. Where these currencies differ is in the fact that MEUs are always fixed to participants.
1 MEU is equal to the total economic potential of a single verified participant.
For example, if your economy consists of 1,000,000 people, the money supply is capped at 1,000,000 MEUs, or in other words, 1 MEU per person.
MEUs are to money what micrometers are to meters; 1 million micrometers are equal to 1 meter, and 1 million MicroMEUs are equal to the total economic potential of any person, or 1 MEU. Although the economic value of an MEU is free to change over time, the basis on which it’s supply is created remains fixed and predictable so that prices remain stable.
MEUs can be created in advance and distributed to participants, or can be created over time and introduced in to a system slowly. The only requirement is that the total money supply is capped at 1 MEU per participant.
They are infinitely divisible, with a MircoMEU representing 1/1,000,000 of an MEU.
The fair value of an MEU
MEUs need not define a specific value-per-unit, because free markets discover their relative value. This is the purpose of price discovery, to find out what the relative value is between participants and to cause prices of goods and services to adjust.
Money supply based on MEUs can be more democratic in that they offer a simple basis to help to prevent manipulation of a currency’s value. Often times when governments introduce new money and therefore debase existing money, the new money disproportionately advantages asset holders, as the relative value of assets go up, but the relative influence of labor on prices tends to remain the same.
A money supply that is pegged to MEUs (rather than gold, GDP, inflation, and various other schemes) allows participants to instinctively understand the underlying value of the currency as some fraction of economic potential that they will produce or consume.
In adopting MEUs as the basis of a currency, a number of manipulation factors are removed. Money supply that cannot exceed one-million times the number of participants need not experience runaway inflation where prices need to be continually adjusted, and existing currency debased.
Governments tracking statistics using MEUs can look at data that has a consistent relational value over time, rather than needing to be adjusted for price changes due to monetary policy.
Currencies based on MEUs can be used globally or nationally, but with confidence and stability in their exchange value. After all, if one nation’s currency is based on the same underlying mechanism as another’s, you can exchange from one to another with the same understanding of value, as the currencies differ only in name and jurisdiction.
The Metric Digital Currency
The Metric DC is a central bank issued global digital currency that is implemented using MEUs. When a new and unique participant verifies their identity, the money supply limit increases upward to accommodate the new participant, although the actual money supply only increases slowly to approach the new set limit. This is done by spending new money in to the system, as a direct payment to participants on a daily basis, and also on the expenses of maintaining the Metric DC infrastructure.