In the years since Bitcoin’s birth, cryptocurrencies have morphed from something only cryptographers and tech geeks cared about into a new version of the internet that’s now attracting governments and the world’s largest corporations.
In that span of years, the world has changed dramatically in ways that reflect the worries that Bitcoin’s founder, Satoshi Nakamoto, hinted at when he mined the first Bitcoin block with a message to humanity: “The Times 03/Jan/2009 Chancellor on brink of second bailout for banks.”
The message referenced the ongoing fallout from the Global Financial Crisis. Satoshi was telegraphing to ordinary citizens their need to prepare for what was coming—a global financial crisis at the hands of profligate Western governments, one that would rob people of wealth as government mandarins institute policies to save the government from its own failures over the last four decades.
Today, Satoshi’s warning is coming true. Western debt has grown even larger since the Global Financial Crisis. It now surpasses $226 trillion, more than two times larger than the entire global economy. By comparison, total world debt in 2007, before the Global Financial Crisis arose, government debt was about 70% of the world economy.
All of this debt creates a problem that has no solution: How to manage debt-repayment costs? For 15 years, interest rates were effectively 0% as central banks globally sliced rates to the bone to save economies from collapsing into stagnation or deflation. That made expanding debts relatively affordable.
Now, however, interest rates are at 5% and above across much of the world, and governments’ debt-repayment costs have soared. In the U.S. alone, the world’s largest economy paid more than $700 billion in interest payments in 2023, a record amount and nearly double the $400 million the White House originally expected to pay. That number will only grow larger in 2024.
It’s unsustainable and leading the world toward another Great Depression, though possibly worse.
The primary downside for humanity is that governments must destroy the value of local currencies to save themselves. By dramatically devaluing the dollar, the euro, the yen, etc., governments will be able to pay down their extreme debts with currencies that aren’t worth less. Every government in history has done this when faced with the consequences of relying heavily on debt to run the nation, afford wars, and buy the people’s votes.
Satoshi knew this history when he built Bitcoin. He knew history always repeats and that Western governments would do what every other government has always done—kill the currency.
So, it is that one of the primary traits Satoshi built into Bitcoin was decentralization. No one should control a currency, Satoshi reasoned, because control means one group can design changes into the currency that benefit that group over others.
Yet more than a decade after Bitcoin’s birth, crypto risks violating the primary principle of decentralization. Blockchain builders are chasing speed and security at the cost of decentralization.
Certainly, speed and security are crucial to the long-term success of blockchain adoption. But without decentralization, crypto technology is at risk of losing the very reason it exists – a way to prevent a central power from corrupting a currency to its own benefit and to the detriment of its users.
To that end, Fushuma is recommitting ourselves to the core values Satoshi laid out when he built Bitcoin as a replacement for the corruption of fiat currencies. We’ve built a blueprint we call the “Philosophy of Decentralization” that articulates why decentralization is more important now than ever.
Fushuma’s Seven Axes of Decentralization
As we noted, modern blockchain development is increasingly focused on speed and security while downplaying decentralization. Two prime examples of this are BNB Chain’s centralization and Ethereum’s staking pools. Both are emblematic of this shift away from Satoshi’s core tenet of decentralization.
This deviation from crypto’s original ethos poses vast risks for the entire crypto ecosystem and threatens mass adoption. Centralized control introduces the opportunity for malevolent actors to erase transparency and create opaque blockchains that allow for unseen manipulations and biases in rules and decision-making.
If those concerns remain, or if those concerns manifest as real problems the media report on, mass adoption will fail. Consumers and businesses will rightly worry that their finances are at risk and will simply avoid blockchain services altogether.
Fushuma has addressed this concern by purposefully positioning itself as a decentralized alternative in a world of increasingly centralized blockchains.
Fushuma pursues true decentralization and focuses on security, innovation, and community engagement through a Proof-of-Stake approach (POS).
One challenge prevalent in many new PoS (Proof-of-Stake) projects is the risk of centralization, where a concentration of wealth leads to an imbalance in participation. In other words, those who own a significant amount of PoS coins will get more of it; everyone else will miss out, interfering with the network’s decentralization.
To address this, Fushuma draws inspiration from Satoshi Nakamoto’s original vision and advocates for a fairer distribution model. While acknowledging the merits of Proof of Work (PoW) in promoting initial decentralization, Fushuma is allocating a significant portion—24%—of its native token, $FUMA, to the Callisto Network community, from which Fushuma originates.
The Callisto Network coin was initially airdropped to the Ethereum Classic community, thereby establishing a broader user base rooted in decentralized origins.
By allocating an additional 6% of $FUMA tokens to the broader crypto community through an Airdrop, Fushuma ensures a diverse and inclusive user base from its inception. This approach means Fushuma will be decentralized from its birth—as from the beginning, 1/3 of the total circulation supply will be distributed to a large user base—controlled by a broad community rather than concentrating control in the hands of a few.
Today, we continue to hold true to Satoshi’s vision, even as much of the rest of the crypto world migrates away from decentralization.
Our Philosophy of Decentralization blueprint lays out the need for a genuinely decentralized platform in the current environment. We’ve built this blueprint around seven axes that should foresee the cryptosphere recommitting itself to the core values that made blockchain technology revolutionary.
I. Adherence to Core Values
The shift from decentralization to centralization is fundamentally at odds with crypto’s foundational principles. Centralized control can lead to a lack of transparency, increased manipulations, and potential biases in decision-making. Fushuma maintains a commitment to decentralization, unlike too many other platforms today.
II. Promote Integrity, Fairness, and Innovation
The concentration of staking power promotes centralized control, potentially leading to unequal influence and decision-making power, thereby challenging the democratic ethos of blockchain technology. Fushuma actively works to lower barriers to entry and ensures a stake-weighted mechanism, reflecting our commitment to true decentralization.
III. Community Empowerment
Fushuma will be decentralized by relying on an organic approach: Distributing 24% of FUMA coins in a migration process to the Callisto Network community and another 6% to the wider crypto community will allow Fushuma to grow through the support of its community. At launch, the Fushuma Treasury will hold 40% of the FUMA coins supply to fund community proposals. With the roll-out of the Fushuma DAO, the community will gain complete control over the Treasury.
IV. A Firm Commitment to Security
While scalability and speed are the end goals of many blockchains these days, decentralization should take precedence if crypto is to maintain its primary purpose of democratizing money and providing humanity with safety and security away from government intervention. Fushuma is leveraging its experience to drive blockchain adoption through security with advanced technologies and token standards that enhance safety and usability.
V. Innovative Scalability Emphasizing Security
Fushuma recognizes that crypto’s primary use cases will require scalable solutions. But the industry must remain committed to decentralization and security. The Fushuma Research Department is built on a fundamental commitment to decentralization, with security as its primary goal. We are adopting an innovative Proof of Stake protocol that embodies genuine decentralization, inclusive participation, and a transparent treasury.
VI. An Autonomous and Self-Sustaining Blockchain Ecosystem
Fushuma is set to launch with a definitive token supply of 21 billion $FUMA, ensuring no additional tokens will be created, reinforcing our ecosystem’s stability and predictability. Through transparent tokenomics, we are dedicated to preserving decentralization, supporting strategic projects, infrastructure development, collaboration initiatives, and a unique funding model to drive innovation and community empowerment.
VII. A Call for Decentralization
In a time marked by significant global shifts in wealth distribution and economic paradigms, Fushuma aligns its decentralized model with emerging societal needs. By addressing inflation concerns, fostering strong communities, and engaging with global trends, Fushuma manifests a vision for a more inclusive future.