Understanding that Uro’s utility is not affected by traders on exchanges

true-asset

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Uro: Backed by Millions of Tons of Urea Fertilizer

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Today at 12:14:40 AM
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The point is not to know if OP can be a horse behind a computer or not.I want to understand the idea behind the project.
I don’t see how the project is helping the farmers using urea.
Cryptocurency lead to massive pump and dump. How can we expect people to rely on it ?
What if millions of people lose all their wealth and are forced to starvation because of a dump from a nerd with a massive GPU farm ?
This is a caricature but do someone see the point ?

Uro’s utility to a farmer is not affected by the behaviour of traders on the exchanges: A farmer that holds Uro will get his/her Urea when he/she needs it – without having to worry about Urea or Uro price changes – because the Uro Protocol legally binds the NIERs to this commitment for the next ten years – with more NIERs joining the Foundation in the coming months. This commitment is just the beginning – because it currently only caters for whole ship orders of 12,500 MT – we are in ground-breaking discussions with Urea wholesalers right now to facilitate smaller orders. We invision that one day, 1 MT Urea purchases will be possible with Uro.

All of this is possible because of the Uro Protocol backing Uro to 1 MT of Urea. Its unique, its different – its not a backing to USD, its not a backing to any fiat currency or even any cryptocurrency. Uro is a different animal all together – a currency backed to a manufactured commodity – a commodity that is crucial to the upkeeping of civilization.

All that have ever been released upon this community in the past has been concentrated on getting a high BTC exchange rate, but BTC itself is volatile – and so is any other currency including fiat. Uro is the fresh approach – a backing to the real needs of the human race – the need to grow food.

Think about this – if a war breaks out and your life is in danger – what is a bank note? what is even a gold bar? The only thing that matters is safety and sustenance. Food and whatever is required to produce it are the only constants – the only things that are universally valued in the same way by every  person on earth – if fact – they are the only things universally valued by all life everywhere. It does not matter if its a plant, an animal, a human or an alien – all have to eat.

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Value can be placed on Urea because it does have value for everybody

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Today at 12:16:11 PM
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This is all very utopian and idealistic, but fundamentally in the real world in which we live right now, how are the producers going to get paid in order to even break even or profit from the sales of urea? It’s not like they can pay their utility bills with URO.

Wow… why do people that do not have a clue about how commodity- and stockmarkets work, trade cryptocurrencies…

Ok I shall change my education and career for this. Crypto is a hobby and interest for me, nothing more. I’d be interested if rather than putting me down you could explain it, otherwise I will attempt to educate myself.

In my narrow, limited world view, I just don’t understand how you can place a value on something that noone else can use as a unit of value?

Value can be place on Urea because it does have value for everybody – its what is growing half the food on the planet.

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The farmers need Uro to buy their Urea

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Today at 06:48:48 AM
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This is all very utopian and idealistic, but fundamentally in the real world in which we live right now, how are the producers going to get paid in order to even break even or profit from the sales of urea? It’s not like they can pay their utility bills with URO.

Basically I think it works like this. The farmers need Uro to buy their Urea. Before Urea ranged from 200-600 dollars a MT. They buy Uro from miners and trade it for goods. So in theory the price of Uro will go up leading up to July 9th when this is supposed to take effect. Then these companies sell back the Uro’s to other farmers/miners/investors and it just goes in circulation like that. Thats my simple explanation. So right now the people dumping at the current price in theory would be missing out. The way I see it is the price will steady climb the rest of this month up to a certain value maybe not the current price of Urea but to a certain value. Then once people see that this is or isnt a scam the price will shoot up to that value if its legit.(then the Urea producers sell and get their money) I dont see miners selling something for dirt cheap when it has a value to someone else thats alot higher. Of course this is speculation but as is all crypto is speculation. Bitcoin is valued at 660ish currently but tomorrow it could dive to 400 or climb up to 1000. However if this is legit and their is an actual commodity backing the coin then it will have an almost definitive value.

 

Why has the NIERs not bought up all the Uro on the market

From: https://bitcointalk.org/index.php?topic=600639.msg7242744#msg7242744

The question “Why has the NIERs not bought up all the Uro on the market?” has been asked many times. We are pleased to be able to publish an answer now.

There are so many reasons why the members of the Foundation has not chosen to go down this path, and here are just a few:

  1. Sustainability: The need for the Uro community to prove itself as a long term, sustainable crowd business model: The Foundation wants to see Uro grow organically on its own, with its own proud tradition. Uro needs to be convincing to the general public as represented by the community here. Uro needs to stand alone on its own principles and economic foundations. A few companies buying up all the currency supply does nothing to achieve this.
  2. Ethics: it is just plain wrong for the Foundation members to manipulate the market by hoarding all the Uro supply. In the share market – this would be considered some form of insider trading and definitely breaks a number of laws. Just because the cryptocurrency space is unregulated by the government doesn’t mean that we should not hold ourselves to high moral and ethical standards. Having a few parties with a majority stake in the currency supply simply breeds opportunities for market manipulation that benefits almost no one.
  3. Market creation and growth via “Earned Distribution”: to have a market – you need mass participation. What is the point of Uro if – when it reaches its proper value – that only a few hold it? There will be no point to such a currency – currency is something that is useful for exchange between people – especially strangers. The bigger the market the better – and we believe that the best way to create a large market is through what we call “Earned Distribution”: everyone that is holding Uro have earned them – by mining to keep the network operating, by contributing to the community via posting new information to strengthen its value, by buying some Uro. This is the free market at its best – mass participation with no freeloaders.
  4. Policies in Philanthropy: For the NIERs – Uro is not a sale, Uro is not something that fits the metrics of what that the Urea trading firms will pay for as an expense or an investment. for the NIERs – the best category for Uro to fit in is as part of the philanthropic and R&D activities these companies get involved in. Over the years – the NIERs have learned that handing out cash usually ends up with corrupt officials and middlemen absorbing the majority of the donations or funding – so the NIERs now have a policy: No cash handouts. This policy is the result of tens if not hundreds of millions of dollars in hard lessons learned from past charitable and R&D activities. The NIERs are fine with providing millions of tonnes of Urea knowing that it will go towards planting something that will help feed people in need, but not okay with providing funds so that Uro can be temporarily and artificially inflated in value on a currency exchange just so that a few early adopters can cash out.

Taking a risk for long term goals

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June 10, 2014, 09:35:49 PM
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Its always the same with coin trading. I invest in coins with longterm goals, not shortterm technology.

Uro has a longterm goal, thats attractive as there will remain to be a reason to invest in it.

My potential loss would be 100%, my potential gains is far bigger than 100%, especially with a current market cap of just 28k…

I’m taking the risk.

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Buying Uro and Urea – now and the future

true-asset

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June 10, 2014, 06:45:50 PM
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Quote
Goals
a. To setup a Distributed Urea Exchange for the efficient international trade of the world’s most important fertilizer for food production: Urea (http://en.wikipedia.org/wiki/Urea [Domain=en.wikipedia.org] )
b. To provide a medium of exchange stabilized via backing to the true and undeniable international value of Urea, the world’s most important fertilizer commodity that is responsible for 50%+ of total world food production.

Wait…
Why do you need to do a copycoin to make an exchange ?
Wait…
How do you backup the coin exactly ?

Q: Why do you need to do a cryptocurrency to make an exchange ?
A: The concept here is unique – the Uro network is a UREA exchange – not a BTC exchange. There was no way to achieve a decentralized Urea exchange as cleanly and as elegantly as Uro has done it. With Uro – you do not need a website to run the exchange – the Uro network itself trades Uro futures natively via the wallet. This means no downtime and no risk of fraud.

How do you exchange USD <-> URO ?

At the moment, you can purchase Bitcoins from your local country, then buy Uro on Bittrex and other upcoming exchanges.

In the future, you will be able to collect Uro (instead of Urea straight away) when buying Urea from participating wholesalers (Uro are effectively Urea futures). This way – farmers can easily mitigate the risk of Urea price volatility in the future by holding Uro when the going is good and exchanging it for Urea when they really need to.

Only a few nations officially use USD anyway – so even if we had a USD/URO exchange it would not be that useful for the parts of the world Uro will benefit the most (developing nations with a shortage of fertilizer).

 
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Examining the Uro Protcol

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June 09, 2014, 11:14:04 AM
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Hi Dev,

I have gone through the protocol. I have a few queries and clarifications about the same.  I would appreciate if you could answer all of them for my benefit and others in the thread.

1.   Article-1: Each member will be backing only an amount of 12,500 MT of Urea. As per the ANN post and website there are only 4 members. Which means there is only 50,000 MT of Urea backed against the current >150,000 supply of UROs.
2.   Article-5: All the instruments of ratification will be deposited with URO foundation. Will these instruments be held by you or in the office of URO foundation of locker of a bank? If yes, where will be the office of URO foundation located or in which country’s bank and in which bank’s locker these ratifications will be deposited for safe custody.
3.   Article-6: This protocol will not be in force until 4 members have approved and ratified this protocol. What if one of the four members you mentioned in the announcement post do not agree to this proposal. This protocol will never come into effect and nobody can use UROs for buying Urea ever. After all the 4 of them have signed, it will take one month for this protocol to be effective, i.e. no one can buy Urea before 9the of July. Please clarify.
4.   Why are names and addresses of any of any member not mentioned in the protocol? After page 2 there is contract of sale directly.
5.   What will be the minimum quantity that a farmer/anyone holding UROs buy? In protocol it is mentioned as 12,500 MT. If a farmer does not need 12,500 MT of urea, why will he buy such a quantity?
6.   Presently, URO can be exchanged for Urea only in the countries where there is a member. People from other countries can only mine and trade URO but cannot exchange the same of Urea. Please clarify.
7.   Arbitration will be done by ICC: Does ICC consider URO as a mode of payment or currency of payment. If not, it will not be possible to seek arbitrage from such organization in the event of dispute. Please clarify.
8.   Article-22: Banking Information: What are the banking charges being discussed here? It looks like a copy paste mistake. What are the confirmation charges. I believe this is used in case of LCs. There is no LC involved here if I am not wrong. Then why the use of banking information here?

There are many tiny other details I have queries for but for now I do not have patience to type so much.

I would appreciate if you could clarify on the above queries and I hope this will answer the queries of many other fellow community members.

Regards,
Change is permanent.

Q & A –

1.   Article-1: Each member will be backing only an amount of 12,500 MT of Urea. [/b]As per the ANN post and website there are only 4 members. Which means there is only 50,000 MT of Urea backed against the current >150,000 supply of UROs.

Actually there is no legal limit to the amount of Urea backing (although a practical limit is imposed by the fact that the supply of Uro is limited – hopefully this gives you a better idea of why we went with 1 million Uro in the first 6 months then 100K per year – it is to allow management of the Urea purchase growth). Article 1 states the Member will supply 12,500 MT Urea to “any”(understand as each if that makes things clearer for you) purchaser. There is no limit to the amount of Urea available. If you have 1 Million Uro then you can purchase 1 Million MT Urea by making 80 separate purchase orders (which conveniently fits on 80 ships – more on this below).

2.   Article-5: All the instruments of ratification will be deposited with URO foundation. Will these instruments be held by you or in the office of URO foundation of locker of a bank? If yes, where will be the office of URO foundation located or in which country’s bank and in which bank’s locker these ratifications will be deposited for safe custody.

The signed instruments of ratification will be electronically published to the public for all to see and make copies of. The hash values of the these electronic instruments will be timestamp verified on to the Bitcoin blockchain viahttp://www.proofofexistence.com/ (a service we are porting to the Uro blockchain as well – and of course the first application would be to store hashes of these documents).

The electronic instruments will be backed up on 10 different cloud storage services and physical media including services operated by Google, Microsoft, Amazon, Digital Ocean, Backblaze, Ninefold, MEGA, Apple, Firedrive and most of these backups will be publicly available. The actual paper originals will be stored securely but we do not have permission from the Foundation board to reveal any more details regarding the physical storage at this time.

Once the Protocol is ratified by a Member, there is no way (under the terms of the protocol) for the Member to leave without a full public announcement by the Foundation via twitter and on the official website – and that will only take effect after 60 days at least (because that is how long it takes to amend the protocol to allow for this – without an amendment the Uro Protocol currently requires Members to stay ratified for the next 10 years).

3.   Article-6: This protocol will not be in force until 4 members have approved and ratified this protocol. What if one of the four members you mentioned in the announcement post do not agree to this proposal. This protocol will never come into effect and nobody can use UROs for buying Urea ever. After all the 4 of them have signed, it will take one month for this protocol to be effective, i.e. no one can buy Urea before 9the of July. Please clarify.

The four members that will be signing have already been named. The Foundation had a meeting with all members attending on Friday and confirmed all 4 members are signing. You would just have to wait for the instruments to be published – speculation of whether it will happen or not is a waste of time and energy. Regarding the 30 days before the protocol comes into effect – as you one can imagine, it takes time for things to happen in large corporations – staff needs to be trained, procedures put in place, infrastructure setup – these things cannot happen overnight. 30 days is a very reasonable amount of time to setup a business to accept form of payment that operates using completely different software then the existing SWIFT system.

4.   Why are names and addresses of any of any member not mentioned in the protocol? After page 2 there is contract of sale directly.

The Uro Protocol is open to signing by all NIERs that join the Foundation – so it would not be appropriate to put any company details on there. The instruments of ratification are what binds companies to the protocol.

The contract of sale has gaps that are to be filled in when the actual order is placed. These gaps are filled with the correct values for each specific order

5.   What will be the minimum quantity that a farmer/anyone holding UROs buy? In protocol it is mentioned as 12,500 MT. If a farmer does not need 12,500 MT of urea, why will he buy such a quantity?

The reason that there is a minimum order of 12,500 MT from the Members is that this is the amount which fills a typical cargo ship – because the Urea is to be delivered in bulk form (i.e. poured straight into the cavity of the ship) this is the only economical way to do it – any amount less and the purchaser will just be wasting their transport capabilities – which is not environmentally friendly. Another reason is that, in international Urea trading – nobody does deals less then 12,500 MT.

Understand that the Uro Protocol is the baseline that underpins Uro’s refence value – it is not (by itself) the ultimate end solution – The Foundation will setting infrastructure with local wholesalers (already under negotiation) so that smaller quantities of Urea can be purchased with Uro – in this case it will be the wholesalers not the NIERs supplying Urea to the purchaser – obviously the wholesaler still has to obtain their Urea supply from an international trader – likely a NIER – and here is where the solution comes full circle.

With the wholesalers – we know that some will be accepting orders in the 200 MT range – and we striving to find new partners that will supply even lower quantities – there is much to be done in the coming months – there is a 1 year plan we have in place and a 3 year plan is already in draft form.

6.   Presently, URO can be exchanged for Urea only in the countries where there is a member. People from other countries can only mine and trade URO but cannot exchange the same of Urea. Please clarify.

This is not true – nothing stops any individual or company from ordering from overseas suppliers – its just convenient to have someone to contact in your home nation – but not necessary. Plus, more members will come on board in the coming months – many Urea traders will understand the benefits of Uro once they see it – we will seek nations that do not yet have representation aggressively

7.   Arbitration will be done by ICC: Does ICC consider URO as a mode of payment or currency of payment. If not, it will not be possible to seek arbitrage from such organization in the event of dispute. Please clarify.

The ICC does arbitration – which is to do with getting both parties to agree on something via a set of mediation rules and procedures. The ICC does not need its own opinions and regulations on what are valid currencies. Because Uro does not suffer from bank delays or blockages, any issues that arise therefore will be to do with delivery or product specifications – which again the ICC are not experts in either – the ICC court is just their to make rulings on what are fair solutions to problems – the parties to the contract have to suggest and compromise on each other solutions together with the ICC arbitrator.

8.   Article-22: Banking Information: What are the banking charges being discussed here? It looks like a copy paste mistake. What are the confirmation charges. I believe this is used in case of LCs. There is no LC involved here if I am not wrong. Then why the use of banking information here?

As far as a Uro transaction goes, there are no expected banking charges. However. if either party decides to use a future payment processor to obtain fiat currencies – this clause protects both parties by making sure the banking charges stay where they belong and do not “bleed” unfairly on to the other party.

Another case where there can be banking charges is when the purchaser wants to order greater quantities – paying part LC and part Uro.

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The Main reason URO will be a big hit with any trading companies all around the world

June 09, 2014, 10:01:20 PM
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The Main reason URO will be a big hit with any trading companies all around the world  – currently the only safe payment option available is LC (Letter of Credit) to send out an LC fees cost in fees and charges   over $100K – these are just banking plus the delay in time, it takes over 3-4days for a banker to confirm they received the LC, if there are any changes to the format of the LC then it goes back and forth.. each time 3-4days by bank swift.  The buyer of the UREA will pay the fees (100K plus) to send out an LC  – then the seller also pays large amounts of banking fees to clear the LC or transfer the LC to third party. ….Anyone ever imported using LC will be able to confirm.

Why do you need to do a cryptocurrency to make an exchange?

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June 09, 2014, 09:39:08 PM
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Quote
Goals

a. To setup a Distributed Urea Exchange for the efficient international trade of the world’s most important fertilizer for food production: Urea (http://en.wikipedia.org/wiki/Urea [Domain=en.wikipedia.org] )

b. To provide a medium of exchange stabilized via backing to the true and undeniable international value of Urea, the world’s most important fertilizer commodity that is responsible for 50%+ of total world food production.

Wait…

Why do you need to do a copycoin to make an exchange ?

Wait…

How do you backup the coin exactly ?

Q: Why do you need to do a cryptocurrency to make an exchange ?
A: The concept here is unique – the Uro network is a UREA exchange – not a BTC exchange. There was no way to achieve a decentralized Urea exchange as cleanly and as elegantly as Uro has done it. With Uro – you do not need a website to run the exchange – the Uro network itself trades Uro futures natively via the wallet. This means no downtime and no risk of fraud.

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