Global Reserve System - GitHub Pages · withheld bythe system and can subsequentlybe : (a) burnt (default option), (b) transferred to the Charity Fund of the GLOB Reserve System,

White PaperVersion 2.1

http://globreserve.com/

Global Reserve System

You Never Lose

1. Global Reserve System 3

1.1. Problems of the modern economy 3

1.2. Alternative economy 4

1.3. The GLOB ecosystem: your money comes back to you

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2. How It Works 6

2.1. The GLOB cryptocurrency 6

2.2. The Proof of Transaction mining protocol 6

2.3. The PoT transfer 7

2.4. The Total Mining Mechanism 9

2.5. User benefits 9

2.6. Glob Ecosystem Benefits 10

2.7. Supply control mechanism and protection of coin holder interests

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2.8. Conditions, required for the project success and the overall GLOB growth potential

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2.9 Other Benefits 15

3. Project Roadmap 16

4. Project Team 17

5. GLOB Glossary 18

6. Legalities & Terms 20

7. Project source code 24

8. References 25

Table of Contents

The shortcomings of the existingfinancial and economic modelshave resulted in a decline inentrepreneurial activity in realeconomy segments, economiccrises, wars, poverty, inequality,environmental pollution and socialproblems that literally paralyzehuman progress.Below are some examples:

• Continuously slowingeconomic growth on a globalscale

• Ever-growing debt

• Insufficient financing forsocial and scientific researchprojects as they are deemednot profitable

• Lack of access to liquidity forpopulations in developingcountries

• A considerable percentage ofthe unbanked populationaround the world

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1. Global Reserve System

• Small and medium-sizedbusinesses are struggling tomake profits or obtainliquidity required for theirdevelopment. 90% of privatebusinesses go bankrupt in thefirst year of operation

• Heavy centralization offinancial institutions, lengthy,hard to access and paper-heavy processes resulting inloss of time and resources

• Suffering real economysectors, declinedentrepreneurial activity

• Risk of failed investments,losses or failure to fulfilfinancial obligations.

• Lack of effective protectiontools against commercial risksas well as compensationmechanisms for situationsinvolving fraud or theft.

1.1. Problems of the modern economy

The Global Reserve System is anethical solution for the aboveproblems that implements thealternative - socially oriented andsustainable - economy.

The alternative economy isimplemented through thedecentralized emission of digitalassets on the blockchain and therevolutionary Proof of Transactionprotocol.

Main principles:

• Mutual settlements do notresult in a loss of funds byone of the parties

• No need for speculation forprofits

• Elimination of financial risks• Removal of toxic debt

problems – loans must beissued with no risk of non-repayment

• Ability to turn every project onthe Planet into a profitableone

• Ethical distribution of wealth• Solutions to social problems

and a holistic approach tonatural resources

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• Easy funding for scientificresearch and technologydevelopment

• Donations to anyone on thePlanet made possible withoutbudget loss

• Passive income ensured bythe total mining mechanism

• Limited token supply andgradual token burning

• Enabling of efficient use ofboth fiat and digitalcurrencies, as GLOB allowsthe financial institutions toplan and manage theirprofitability

• Elimination of debt-basedconsumption stimulation inthe economy in favour ofconsumption increased basedon prosperity growth

• Interest rates to become fixedwith no negative effect on thereal sectors of the economy

• All loans to become profitableand businesses allowed toflourish. No need for thebanks to speculate with debtand instruments in order tocover their losses. Low risk ofmajor market crashes like thatof 2008.

1.2. Alternative economy

Global Reserve System usesGLOB cryptocurrency tokens,which are minted by Ethereumsmart contracts. In the GLOBecosystem, the users arerewarded for making paymentsvia the system by way of miningnew coins each time a transactionis concluded. Hence, notransaction on the system resultsin a loss.

With every transaction, thesystem’s smart contract conductsa decentralized emission of GLOBcryptocurrency over a period ofthe next 365 days.

Due to the immutable nature ofblockchain, the smart contractcannot be tempered with andensures that the senders receiveback 100% of the amounts theysend upon the lapse of 365 daysmining period, and the recipientsreceive a 100% reward on theamounts received. the solidity ofthe system and high liquidity areensured by the systemmechanisms, described below.

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The 365 days period is utilized formining the exact quantity ofGLOB coins required to pay theparties. The mining speed isincreased twice in every 72days, and by day 365 the sufficient amount of newly minedcoins is reached, enough to paythe rewards to the parties.

In order to exclude marketoversaturation, limit theemissions, form the project Fundsand cover the mining costs, 20%of each transaction’s amount iswithheld by the system and cansubsequently be:

(a) burnt (default option),(b) transferred to the CharityFund of the GLOB ReserveSystem,(c) transferred to the ProjectDevelopment Fund,(d) gifted to the developers.

The system is fully operational,the smart contract source code isopen, verified and published onthe Etherscan website.

1.3. The GLOB ecosystem: your money comes back to you

GLOB cryptocurrency is a limitedsupply ERC20 token that utilizesthe Proof of Transaction (PoT)innovative decentralized emissionprotocol.The token is designed as apayment vehicle in the GlobalReserve System and serves as aprofit management instrument forall types of projects. It is notsuitable/made for crypto marketspeculations and is less profitablewhen used as a value storage.

Each token is divisible to smallerbits, 0.000000000000000001being the smallest portion.There are only two ways ofemissions of GLOB tokens:

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2. How it works

(a) by conducting send/receivetransactions on the system and(b) by initiating of total miningtransaction.

The initial emission of GLOB is 10million tokens (tokens havealready been minted), and thenewly mined transaction tokensare added to the total supply onlyonce they have been withdrawnby the recipient after mining.GLOB WALLET, a decentralizedweb application has beendeveloped for GLOBcryptocurrency settlements thatutilize PoT mining and otherfeatures of the system.

2.1. The GLOB cryptocurrency

2.2. The Proof of Transaction mining protocol

Proof of Transaction (PoT) is analternative to the widely spreadProof of Work and Proof of Stakeprotocols used for transactionverification and mining.GLOB implements thisrevolutionary protocol by means

of a smart contract in theEthereum blockchain, accordingto which a transaction registeredin the system by a reserve fund(user) is the basis for theemission (mining) of GLOBcryptocurrency.

• Transferring cryptocurrencyfrom one reserve fund toanother using the PoTprotocol is called PoT transfer.

• Reserve funds are theregistered users of thesystem.

• Transactions are conductedbetween the users of thesystem.

• If the recipient of the PoTtransfer is not a registeredreserve fund, then he isautomatically registered asthe sender’s sponsor. It entailsconducting a reservetransaction that would mineGLOB cryptocurrency for 365days from the date oftransaction.

• Once mined, the senderreceives a reward equal to100% of the amount sent,and the recipient receives a100% reward of the amountreceived.

• All PoT transfers areirreversible and createtransactions that conductGLOB mining for the next 365days unless otherwisewithdrawn by the user earlier.If necessary, one maywithdraw coins pre-term, i.e.

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prior to the completion ofmining of the full rewardamount but will only obtainthe coins mined to date.Thus, the remaining amountthat was expected to bemined in the remaining dayswill not be mined.

• The mining is conducted onlyif the transfers happen withinthe GLOB ecosystem. Thestandard ERC 20 transfermethod is provided in order tointeract with multi-wallets,exchanges’ smart contractsand decentralized exchangesthat cannot use PoT miningmethods.

• The system withholds 20% ofthe transaction amount tocover mining costs/creation ofa reserve transaction for thedistribution of created assets,both of which are mandatory.

• Compensation for allexpenses can be obtainedwhen making purchases bothonline and offline. The onlyprerequisite is an Ethereumaccount with a minimumbalance to pay for transactioncosts (gas).

2.3. The PoT transfer

Example:

Each completed transactionautomatically initiates the mining ofnew coins for its parties. If a sender issending $100 worth of GLOB tokens toa receiver, $80 is sent and $20burnt/donated to the project funds ordevelopers, at the sender’s discretion.

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The mining is initiated by the smartcontract and upon the lapse of the 365calendar days, the sender receives$100 back and the receiver gets 80$ ontop of the initially received amount of$80. Thus, total emission is $180, or180% of the initial transaction thattook place a year ago. Everyone wins.

Sender Receiver

Smart contract initiates mining for 365 days

1 year later

Sender Receiver

- $100 ($80 To Sender,

$20 = Fees)

Gets $80

$100 transaction

+ $100 + $80

No loss Total received: $160

The Total Mining in the GLOBecosystem is a unique passiveincome vehicle by which a specialtype of transaction is initiated.The vehicle eliminates the needfor any speculative actions aimedat achieving profits.Total mining transaction results inan indefinite number of PoT

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transactions between variouswallets of the transaction initiatorand keeps on going until themining fee amount is exhausted.As we already know, eachtransaction initiates the mining ofnew GLOB coins.

2.4. The Total Mining mechanism

2.5. User benefits

The GLOB users benefit fromholding the tokens whichinevitably will increase in priceand also from performingtransactions that emit new coins.Purchases of goods and serviceswith GLOB result in the return of100% of the spent amounts.

In addition, there are variousreward scenarios, i.e. referral feesfor inviting friends and familymembers, airdrops etc.

The dynamic equilibrium of theexisting GLOB coins and new coinmining transactions in the userwallets ensures a stable marketsupply of the coins and their highliquidity. Highly liquid digitalassets are perfect for hedgingany fiat investments in the realeconomy.

Example 1:

a GLOB user has purchased a mobilephone for an amount equivalent to$1000. If the purchase is made withthe use of fiat currency, the user gets amobile phone but loses the $1000.

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This enables the economy as awhole as well as any of its usersto finance any initiativesregardless of their profitability, asthe profitability now can bemanaged via the use of GLOB.Any purchase of goods orservices is now a profitableinvestment.

2.6. GLOB Ecosystem benefits

Buyer SellerPays $1000

Never gets it back

Sends the phone

Fiat payment for a $1000 purchase (mobile phone)

If the purchase was paid for in GLOBtokens, he would have received themobile phone and the $1000 back infull upon the lapse of the 365 daysmining period.

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The seller would need to adjust theprice to $800 at the time of the sale,but after 1 year he would receiveanother $800 for the same transaction,thus making $600 in addition to the$1000 price of the phone.

GLOB payment

Buyer Seller

Seller gets $800,send the phone to the Buyer

Pays $1000($800 to Seller

$200 mining fee)

Smart contract initiates mining for 365 days

1 year later

Buyer Seller

+ $1000,still has the phone

+ $800,total received: $1600

instead of $1000

Example 2:

If the mobile phone sale is to beconcluded with the use of fiat, theprofitability can be ensured by GLOBhedging in the following manner:

(a) the price paid for the mobile phoneis $1000(b) a GLOB total mining transaction isinitiated for an amount equal to $200(c) the total amount spent is $1200,and due to the total mining transaction,in a year from the phone purchasedate, the user will be able to

withdraw 1800$ equivalent in GLOBtokens generated via the total miningmechanism, thus gaining $600 on topof his $1200, which is also returnedback to him.

Hence, the use of GLOB as aprofitability management instrumentcan cover any expenses or losses in thereal world transactions for individualsand business alike.

GLOB hedging

Buyer Seller$1000 for the phone

GLOB total mining

1 year later

Buyer GLOB total mining$1800

still has the phone,still has $1000

returned $200 mining fee + $600 profit

$200 for total mining

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According to the PoT protocol,the number of available coins incirculation is constantly reduceddue to the cost of mining/tokenburning. At the same time,transactions are the only way tomine GLOB cryptocurrency, andthe more transactions are made,the lower number of availabletokens remain in circulation atany given time.

The reducing number of coinsleads to lower market supply,whereas the high profitability ofmining ensures stable demand,all of which contribute to thetoken price growth.

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The dynamic equilibrium ofcryptocurrency assets (thenumber of GLOB-producingtransactions to the balance ofavailable coins ratio), combinedwith high demand and limitedsupply, ensures the high liquidityof GLOB cryptocurrency. Thus,the possibility of speculativemanipulation of the GLOB marketrate is eliminated, and theinterests of all coin holders areprotected.

2.7. Supply control mechanism and protection of the coin holder interests

The success of the modelrequires high liquidity of GLOBtokens. It is crucial to ensure theimpossibility of marketmanipulation with an aim to crashthe token price. The high liquidityis expected to be achieved by thenature of the project, its in-builtmechanisms and the way itbenefits both the users and theeconomy in general.

Currently, the total cryptocurrencymarket capitalization is$302,724,815,235 making theentire cryptocurrency marketsmaller than the world’s top 30companies, such as Microsoft,Apple, etc. After 12 years ofcryptos, we are still at the verybeginning stage of the cryptomarket development and thegrowth is inevitable. A new digitalasset that returns 100% or moreinvested in it and brings a varietyof benefits to the world economyas a whole could be thegamechanger for the entireindustry.It is nearly impossible to dump alarge number of GLOB coins atthe same time, as the majority ofthe users will have the ongoingmining and total miningtransactions with pending profits.

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The coins will not be just sittingin the wallets, they will beworking to make profits for theirholders - this is the main idea ofthe project and one of its safetymechanisms. In such conditions,it is nearly impossible to provokepanic in order to make theholders dump their coins.

Would the holders that receivetheir profits in a year from theirfirst investment sell all theirhighly profitable GLOBs at once?

It is highly unlikely. In fact, thedemand for GLOB will only growafter the first holders receive theirfirst profits.

Who would want to let go of anentire holding of an asset thatcan be exchanged for fiat,services and goods with 100%return in a year?

It is highly likely that the holderswill not be too keen to let go oftheir GLOB tokens and the GLOBtoken market supply will keep ondecreasing. Low supply wouldlead to increased demand and askyrocketing price.

2.8. Conditions, required for the project success and the overall GLOB growth potential

• Eliminated financial risks andsolid profitability ofcryptocurrency investmentswhen financing any projectsunder smart contractguarantees, even withoutdebt obligations or submittingother digital assets ascollateral.

• The limited token supply,token burning, increasingnumber of ongoingtransactions as well as thegrowing user base, will ensurethat rapid growth of the tokenprice.

• Since all transactions result ina return of money spent, weare expecting a lot of interestto the project. PoT transferallows purchases of goodsand services with a 100%cashback guaranteed by theblockchain within 365 daysfrom the date of payment,easy and secure GLOBtransfers, a full refund of thesent funds, loans withoutreturn obligations to return orrisk of non-re-payment, anddonations without budgetlosses.

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• The use of GLOBcryptocurrency by bothbusinesses and individualsprovides additional incomefrom PoT mining andnumerous competitiveadvantages, i.e., 100%cashback and the possibilityof lowering prices forconsumers due to asignificant profit of the sellersensured by GLOB

• The open-source systemprovides developers withunlimited opportunities forcreating innovative projectsand implementing uniqueideas.

2.9. Other benefits

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3. Project Roadmap

Exchange listings

Applications, exchangers for the simple purchase and sale of GLOB coins for fiat currencies and from a card

Partnerships with major market players

Creation of merchant platforms

Creation of wallets for all platforms with the possibility of easy PoT settlements by PoTvia QR code scan

Additional listing with exchangers

Global marketing campaign

Building infrastructures

Development and launch of a crowdfunding platform based on a charitable fund system, the competition of investment projects and decentralized voting

Global partnerships, advertising and more exchange listings

DEX platform for exchanging GLOB coins on ESCROW

Project launch & first token emission

Smart Contracts & Dapp wallet creation

Global POS terminal merchant system

February 2020

June 2021

March 2021

January 2021

December 2020

November 2020

September 2020

July 2020

June 2020

April 2020

March 2020

January 2020

December 2019

November 2019

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4. Project Team

Team GLOB consists ofexperienced blockchain industryveterans who have worked onnumerous projects around theworld.

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5. GLOB glossary

Global Reserve System:The Global Reserve System is adecentralized network of privatereserve funds connected bypartnerships and interacting inaccordance with the

Alternative Economy rules,implemented by means of GLOBcryptocurrency smart contracts onthe Ethereum blockchain. Thesource codes for smart contractsare open, verified and publishedon the Etherscan website.

Alternative Economy:The system’s economic model,which implements the principle ofdecentralized emission wherenone of the parties to thetransaction can suffer a loss,excludes the possibility of assetaccumulation for speculativepurposes, ensures the fairdistribution of goods, services,wealth and prevents theemergence of toxic debt.

The alternative economy providesfinancial protection for parties totransactions by compensating forexpenditures and protectingagainst losses throughdecentralized GLOB emission.

Reserve funds:Private accounts of Ethereumblockchain users registered in theGlobal Reserve System, inpartnership with other reservefunds and interacting based onthe alternative economy rules.Each reserve fund has a uniquedigital identifier ID in the system.

Fund registration:Fund registration is theassignment of an Ethereum ID tothe user account ID and itsconnection to the address of thepartner fund account. The fundcan be registered independentlyin the GLOB WALLET applicationor automatically upon receipt of aPoT transfer or airdrop fromanother registered fund.

Reserve transaction:A special digital asset created atthe time of the Global Reservefund transactions, which minesand distributes GLOBcryptocurrency between the fundsof transaction participants/partners. Each ReserveTransaction contains a uniqueidentifier ID in the blockchain,addresses of the parties, type ofoperation, mining status, amountand date.

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GLOB mining:From the moment the transactionis completed, new GLOB coins arecreated for each party to thetransaction. Mining lasts for 365days. When a transaction isaccessed by any of itsparticipants, it is possible toreceive the number of coinsdetermined by the status of theparticipant, the amount of thetransaction and its term. Toreceive the mined coins, theparticipant needs to initiate themining method using the GLOBWALLET or by resorting to thecorresponding smart contractmethod.

GLOB wallet app:An open-source decentralizedapplication – an online wallet forGLOB cryptocurrency transfersand accounts, registration of newreserve funds, sending outairdrops to potential sponsors andGLOB mining.

6.1.1. GLOB cryptocurrency is nota security and does not entitle itsowner to dividends or privileges.GLOB coins do not belong to anycompany or person, are not/donot represent shares in anycompany and do not confer anyother corporate rights.

6.1.2. Buyers and users of GLOBcryptocurrency should be awarethat no national securities lawsand regulations to protectinvestors are applicable to GLOBcryptocurrency.

Cryptocurrency investment bearsa high risk of losses and all Usershereby agree that they are solelyresponsible for any outcome oftheir crypto transactions and/orinvestments.

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6. Legalities & Terms

6.1.3. Anyone who uses GLOBcryptocurrency for the purpose ofspeculation or investment clearlyacknowledges that they hadthoroughly examined theinformation presented herein andfully understands the risks, costsand benefits associated with thepurchase of GLOB.

6.1.4. A GLOB user must possessthe skills to safely use, transact,invest in and storecryptocurrency. The developersdo not bear any responsibility forthe loss of GLOB coins or loss ofaccess to any account as a resultof hacker attacks, user negligenceor the actions or a lack thereof byusers or third parties. The usersshould never give their accountdetails, wallet passwords to anythird parties and make sure thatall account information is storedsecurely.

6.1. General terms

GLOB cryptocurrency usershereby agree with the foregoingand guarantee that they:

(a) amiliarized themselves withthe provided document and agreewith its contents and legalobligations.

(b) have enough knowledge andexperience for the safe use,investment in, transacting withand storage of cryptocurrency

(c) have the legal right andauthority to use cryptocurrency inaccordance with the laws ofhis/her jurisdiction and are actingin accordance with the laws andregulations of the jurisdictionthey are in

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(d) do not intend to use GLOBcryptocurrency for any illegalactivity, including, but not limitedto, money laundering, funding ofterrorist activities, drugoperations, human trafficking orillegal weapon sales, financialfraud, sanctions evasion etc.

6.2. Terms of use

6.3.1 The acquisition and use ofGLOB cryptocurrency carry therisks common to allcryptocurrency: the influence ofinternational regulators thatimpede or explicitly prohibit theuse of cryptocurrency andpossible changes to ormalfunctions of the

Ethereum blockchain that impedethe functioning of GLOB and areoutside of the control of theGLOB developers.

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6.3.2 Before acquiring GLOBcoins, users should carefullyconsider the risks, costs andbenefits of such actions, and, ifnecessary, receive anindependent qualified advice onthis matter.

6.3.3. Any interested person whois unable to accept or understandthe above and any other risksassociated with the use ofcryptocurrency should notpurchase GLOB cryptocurrency.

6.3. Associated risks

6.4.1 This document should notand cannot be considered aninvitation to participate in aninvestment venture. It should notand cannot be regarded as anoffer of securities in anyjurisdiction, does not constitutesuch an offer and is not related toany such offers.

6.4.2 This document does notand cannot contain anyinformation or instructions thatcan be consideredrecommendations or used as thebasis for any investmentdecisions.

6.4.3 GLOB developers should notbe considered legal, tax, orfinancial advisers. All informationin this document is provided forinformational purposes only, doesnot constitute any guaranteesand is only reflecting thehypothetical views of thedevelopers. GLOB developers donot provide any guaranteesregarding the accuracy andcompleteness of this information.

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6.4.4 GLOB is an ethicalcryptocurrency and is aimed atimproving the world. We do notsupport and are not supported byand political parties,governments, lobby groups andhave conceived GLOB to be usedfor legal & ethical purposes only.Investigations or actions ofinternational regulatoryauthorities may affect GLOBcryptocurrency and hinder itsfuture development at any time.Any person who wishes to acquireand use GLOB should be awarethat this document or its termsare subject to change due to newregulatory requirements orrequirements to comply withrelevant laws in any jurisdiction.

6.4.5 Everyone planning topurchase and use GLOBcryptocurrency acknowledges andunderstands that the developersdo not bear any responsibility forany direct or indirect losses ordamage caused by such changes.

6.4. Disclaimers

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7. The Project source code

https://github.com/globreserve/globreserve.github.io

WALLET:

https://etherscan.io/address/0x6b2a9d9500645d51c5b1d87fc95ab56f429902e7

POOL:

https://etherscan.io/address/0xf1014e5cF27b9f56A66dd5acB2aF9F46dab42f00

AIRDROP:

https://etherscan.io/address/0xad54cdfcac45238a5d07bdf6f28e3fc974614a2e

TRANSFER:

https://etherscan.io/address/0x1e8cd1222d2d4bb34f0b3b0afcc978b825b65139

TOTAL:

https://etherscan.io/address/0xd32dfde762c329ee08f8ebce649a5e86f3fe5ac1

MINING:

https://etherscan.io/address/0xf84cc6a51c8c4bb5f2722a2ee7616bd168f45255

TRANSACTIONS:

https://etherscan.io/address/0x4ab5a8ee12e3d1b11a9541add1dd96c46f60da05

REGISTER:

https://etherscan.io/address/0xf43b86852796a7755089fff34ef94d36c0a9317f

ROUTER:

https://etherscan.io/address/0x45f2ab0ca2116b2e1a70bf5e13293947b25d0272

ROOT:

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8. References

8.1 Chen, Wenjie; Mrkaic, Mico; and Malhar Nabar, IMF Working Paper, “The Global Economic Recovery 10 Years After the 2008 Financial Crisis”, 2019

8.2 Deutsche Bank Corporate Research, “The Future Of Payments”, 2020

8.3 Demigunc-Kunt, Asli; Klapper, Leora; Singer, Dorothe; Ansar, Saniya; Hess, Jake, The World Bank Group, “The Global FindexDatabase 2017: Measuring Financial Inclusion and the Fintech Revolution”, 2017

8.4 Saez, Emmanuel; UC Berkeley, “Striking it Richer: The Evolution of Top Incomes in the United States”, 2018

8.5 IMF Policy Paper, “Macroeconomic Developments and Prospects in Low-Income Developing Countries”, 2019

8.6 US Wage Statistics for 2018, https://www.ssa.gov/cgi-bin/netcomp.cgi?year=2018

8.7 Global Debt Database, https://www.imf.org/external/datamapper/datasets/GDD

8.8 Startup Failure Rate, https://www.failory.com/blog/startup-failure-rate