Pluvo: Decentralization Through Distribution

Abstract

This paper introduces a new method for cryptocurrency distribution, Pluvo. Unlike traditional cryptocurrency networks, which typically only charge fees to currency spenders, Pluvo charges fees to currency holders. The proceeds of the fees are shared equally by all unique human members of the network. The result encourages use, discourages hoarding, heals ownership imbalances over time, and maximizes ownership decentralization. Pluvo serves as a template for all cryptocurrencies in which the health of the ecosystem relies on the ability of all members to maintain ownership of the currency and in which the utility of the network suffers in the face of extreme ownership concentration. It also serves as a model distribution mechanism for monetary authorities experimenting with new forms of digital money.