I’m currently developing a cryptocurrency model from scratch that explores a unique economic structure inspired by monetary theories (Austrian School, Milton Friedman, and beyond). The coin isn’t listed yet — this post is for discussion purposes only.

The design includes:

• Planned yearly supply growth of 0.5% to support liquidity and avoid market freezes
• Gradual block reward decay every 4 months, creating an internal rarity curve
• Hard divisibility limit, encouraging perception of scarcity
• Two-layer governance system:
  • One chamber for long-term coin holders (stake-based)
  • One chamber for large stakers with exponentially weighted voting power

I’d appreciate your thoughts on this economic model — where do you see strengths or potential flaws?

You can read the full whitepaper here:

1. General Architecture

• Hybrid PoW + PoS. Miners use SHA-256; the block winner is chosen by the total Points score (see section 3).
• Node. Any participant can run a node from the unitedStates_storage repo. The node collects block candidates, recalculates Points about every 100 seconds, and finalises the candidate with the highest score.
• Time rule. block.timestamp must be at least prevBlock.timestamp + 100 seconds and must not be ahead of the node’s local UTC time. Otherwise the block is rejected.
• Fork resolution. When chains compete, nodes follow the branch with the highest total Points.
• No checkpoints are used. Every node validates the entire chain from genesis and rejects non-conforming blocks.

2. Reward Formula and Monetary Policy

Reward = Result × Multiplier, where Result = (3 + Activity + DifficultyBonus) × 1.005^years 

• Activity is 0.75 if the new block has more unique senders and greater total volume than the previous block; otherwise 0.
• DifficultyBonus = max((Difficulty − 22) / 4, 0), compensating high difficulty.
• years = (currentBlock − 133 750) / (432 × 360); the accounting year is 360 days, 432 blocks per day.
• Multiplier started at 35 and decreases by 1 every 51 840 blocks (≈120 days).
• At block 398 923 (Multiplier 30) the minimum reward equals 90 CITU.
• The annual +0.5 % increment follows Milton Friedman’s rule and the historical gold-supply growth.
• Dev Fund 10 %. An extra 10 % of each reward is minted to the founder’s address for exchanges, development and marketing.
• Planned PoW cap 226 million CITU; actual circulation may exceed it due to the Dev Fund and the 60 million premine.

3. Points Rating (Block Selection)

Points = Complexity + Staking + Transactions + Randomness 

• Complexity = chosenDifficulty × 15, where chosenDifficulty ranges from 17 to 100.
• StakingPoints follow a geometric scale: 1.1 CITU → 1 pt, 2.1 → 2 pts, 4.1 → 3 pts, up to 30 pts.
• TransactionPoints use the same scale ×0.1 and never exceed StakingPoints.
• Randomness ranges from 0 to 170 and is derived from the block hash.

The mechanism acts like an automatic central bank: higher demand raises difficulty and supply, while staking removes excess coins during downturns.

4. PoW Validity

• The SHA-256 hash is treated as a 256-bit number; the count of 1-bits is taken.
• targetBits = 100 − chosenDifficulty.
• A block is valid if hashBits ≤ targetBits.

5. Network Parameters

|| || |Block interval at least 100 seconds and not beyond current UTC time| |Default block size 1 MB, adjustable by governance| |Minimum fee 0 CITU; transactions are free and miners gain ActivityPoints| |Divisibility 0.01 CITU; transactions with more than two decimals are rejected| |Addresses use ECDSA secp256k1, Base58 format|

6. Infrastructure and Tools

• Repo unitedStates_storage contains the node code and a zero-fee Stratum pool
• Repo unitedStates_final provides GUI and CLI wallets
• API endpoints: https://citucorp.com/wallet_and_node_url
• Governance guide: https://citucorp.com/how_to_vote_and_what_voting_types_are_there

Pool payout: weight = 2^(blockDifficulty − 17); payout = (weight / Σweights) × (blockReward − poolCommission)

7. Economic Problem Addressed by Citu

In classical monetary theory, crypto-assets fall into three common models; each one solves a problem yet creates another.

1. Deflationary coins. A hard supply cap or continuous burning. Great for long-term value storage, but they cause liquidity shortages and high volatility: the price whipsaws, making everyday commerce difficult. Halvings amplify the effect— to stay profitable, mining must see the price double or costs fall by half; when that fails, the post-spike crash often drops below fair value and mining pools go bankrupt.
2. Inflationary coins. A constant, rigid issuance schedule (classic example — Dogecoin: 10 000 DOGE per block). Liquidity is ample in calm markets, but during panics the unchanged emission deepens the fall: supply keeps rising while demand contracts.
3. Stablecoins. Strictly pegged to fiat or another asset. Convenient for payments, yet they inherit fiat-currency risks, centralisation and regulatory exposure.

Citu offers a fourth path — “crypto-gold with a fine-tuned regulator”.

• Difficulty ⇄ demand. Difficulty is an instant market gauge: in coin shortages miners raise difficulty, costs double and the protocol mints extra coins, restoring liquidity; when demand fades, high difficulty is unprofitable, the parameter drops and issuance returns to its minimum.
• Staking points. During sell-offs, participants buy coins to boost their staking score; the excess supply is locked as collateral, easing pressure on the price.
• Activity bonus. Triggers only when both active-address count and transfer volume rise, releasing additional coins precisely when turnover lacks funds. Transactions remain fee-less, stimulating network activity.
• Linear Multiplier. The block reward decreases by 1 every 51 840 blocks (≈120 days) instead of steep “halvings”, so miners avoid shock bankruptcies.
• 3 CITU floor. The reward never falls below this baseline, keeping PoW economically worthwhile decades into the future.

Friedman k-percent rule and its application in Citu

Milton Friedman in “A Monetary History of the United States” and “The Optimum Quantity of Money” formulated the k-percent rule: the central bank should set a constant annual growth rate of the money supply, aligned with the long-term potential of the economy, to avoid inflationary spikes and liquidity shortages.

• A steady growth rate instead of ad-hoc measures: reactive money-supply management “in response to circumstances” creates delays, amplifies economic cycles, and provokes new crises.
• Link to real output: the M rate should match potential GDP growth so that money supply increases in sync with the economy without diluting purchasing power.
• Elimination of the human factor: an automatic rule removes political, bureaucratic, and psychological distortions from committee decisions.

Instead of pegging to GDP, Citu anchors to the historical annual growth of global gold reserves (~0.05%/yr) as a “hard” emission benchmark.

The base block reward of 3 CITU is multiplied annually by 1.005^years (+0.5% per year), creating a smooth, predictable emission curve.

This does not preclude market fluctuations; other Citu mechanisms (Difficulty, Staking, Activity, Multiplier) work in concert to immediately adapt to demand changes and maintain price stability.

Empirical evidence. In the first months after launch, Citu showed a steady upward trend—at times rising by as much as 11 050 %. Corrections were mild and quickly smoothed out thanks to the Difficulty + Staking tandem. Bottom line: the algorithm auto-adjusts to any market shock, preserving liquidity balance and price stability.

In essence Citu functions as an automatic central bank without delay: Difficulty injects liquidity, Staking absorbs surplus, and Activity expands supply only when real economic activity grows. The algorithm reacts every new block (≈100 s), maintaining a stable, predictable upward trajectory without bubbles or trust-shattering crashes.

8. Security and Roadmap

• 51 % attack is mitigated by high energy cost plus DifficultyBonus
• PoS risks are neutralised by PoW; nothing-at-stake is unprofitable
• Slashing is not yet active but planned
• Bridges to Bitcoin/Ethereum and an EVM side-chain are in development
• CITU is listed on Dex-Trade, Bitstorage and Exbitron

9. Legal Status

The Dev Fund’s jurisdiction is not yet settled; the token is utility-based and confers no claim on the founding company

10. Summary

• Citu delivers market-driven emission, zero fees, a transparent 10 % Dev Fund, planned 0.5 % annual inflation and divisibility down to 0.01 CITU

With Multiplier 30 the base reward is 90 CITU; every 51 840 blocks the parameter drops, capping supply and reinforcing scarcity

official white paper https://citucorp.com/white_papper