View source for CU (Capital Unit)

== Overview ==
The CU (Capital Unit) is the primary currency used on Vex. It operates on a fully decentralized, market-driven system and exists purely as a digital entry on the **Consolidated Asset Grid (CAG)**. The CU has no physical form and is not subject to government control. It is a perfect, fungible, and universally recognized currency on the planet, with all transactions being logged and traced in the CAG.

== Features ==

{| class="wikitable"
|+ CU Characteristics
|-
| '''Feature''' || '''Details'''
|-
| '''Ownership''' || Absolute. CU is the property of the holder. Not revocable, not leased. If you have it, it is legally and structurally yours.
|-
| '''Physical Form''' || None. CU exists purely as ledger-encoded, Tier-indexed digital entries. No offline storage, no tokens, no hardware wallets.
|-
| '''Fungibility''' || Perfect. 1 CU = 1 CU anywhere on Vex. All units are equivalent regardless of transaction history, region, or origin.
|-
| '''Anonymity''' || None. Every CU unit is hard-linked to identity strata, behavioral profile, and transaction lineage. No transaction is untraceable.
|-
| '''Liquidity''' || Universal and instant. Anyone, anywhere, can use CU. There are no friction zones, no conversion barriers.
|-
| '''Decay Rate''' || None. CU never expires. Hoarding is not punished. In fact, hoarding is culturally respected—capital accumulation is the highest form of prestige.
|-
| '''Transfer Risk Profile''' || None. All transactions are valid by design. The system does not enforce ethics, only records behavior.
|-
| '''Sovereign Override Hooks''' || Impossible. No government exists. CU is structurally incorruptible, by ideological design.
|-
| '''Reclamation Protocol''' || None. Upon death, CU is transferred according to contract. In absence of a contract, it defaults to market seizure.
|-
| '''Recognition''' || Universal.
|-
| '''Inflation''' || There is no issuer authority. The ledger expands only as value is proven and finalized (contract resolution).
|-
| '''Issuers''' || No centralized issuers. CU can be minted by recognized entities completing ledger-validated value generation.
|-
| '''Divisibility''' || Infinite within reason. CU is decimalized to 18 places. Micropayments are common and tied to consumption units (data seconds, air minutes, etc).
|-
| '''Valuation''' || Fully market-determined. Prices are set by pure supply and demand. No ceilings or enforcement.
|}

== Capital Issuance ==

> [!INFO] Capital issuance must emerge from the market itself—not from authority.

Vex relies on a system of protocolized, contract-triggered issuance, monitored by a non-governing infrastructural ledger, called the **CAG (Consolidated Asset Grid)**.

=== Issuance Process ===
# Entities (individuals, corporations, syndicates, AI clusters) register work or value-creation contracts into the CAG.
# The contract specifies:
  * What will be delivered
  * When
  * To whom
  * At what agreed CU valuation
# Upon verification of delivery, the CAG automatically triggers CU issuance to counterparties based on terms.

=== Who Can Register Contracts? ===
Anyone. However, the contract's creditworthiness determines how much CU the market will agree to lock against it (prepaid) or release upon completion (settlement).

{| class="wikitable"
|+ Contract Registration Classifications
|-
| '''Class''' || '''Description'''
|-
| **Primary Entities** || Megacorps, planetary infrastructure firms, orbital logistics networks — highly trusted, mint in large volumes.
|-
| **Secondary Entities** || High-Tier individuals, AI collectives, niche coalitions with proven delivery records.
|-
| **Open Market Entities** || Anyone with a wallet and a ledger-recognized identity — can mint CU upon proven completion of contract-based value.
|}

=== Stabilizing CU Without a Central Bank ===

Vex's CU system is stabilized without the need for a central authority. The system relies on:
* Market trust in contract enforcement
* CAG’s absolute neutrality
* Perfect ledger history
* No state-level manipulation
* No lender of last resort — bankruptcy is terminal
* Every transaction has a timestamp and immutable context

> [!Principles]
> If you fail to deliver value, you do not receive CU.  
> If you destroy value, you cannot retrieve CU.  
> If you manipulate value, the market remembers.

There is no lender, no money printer, no inflation lever, no bailouts, no bond-buying programs.

The “central bank” has been replaced by an autonomous marketplace that mints capital in direct response to delivered reality.

== Debt ==

Debt on Vex operates within the boundaries of a contract, and is issued based on CU already held within the system. Debt cannot be created without collateral. The process is irreversible, and all transactions are logged in the CAG.

=== Debt Principles ===
* Debt is a voluntary contract for future CU exchange.
* CU must exist somewhere in the system to collateralize the debt.
* Debt does not expire; it concludes through one of the following means:
  * Fulfillment
  * Absorption
  * Enforcement
  * Conversion into property forfeiture, Tier degradation, or contract slavery
* There is no “default” on Vex—failure to meet a contract triggers a contract mutation, where the lender's rights convert into direct access to your asset base or personhood.

=== Debt Issuance ===
Debt is issued by CU holders (individuals, collectives, corporations). There are no consumer protections or regulations, and borrowers must fully understand the terms of the agreement.

> [!quote]
> On Vex, debt is never forgiven. It is resolved—by contract, by claw, or by collapse.

== Lending ==

Any CU holder can issue a Debt Offer Contract to any counterparty. All Debt Offers are logged in the CAG.

=== Lending Principles ===
* There are no restrictions on lending.
* Lending is simply logged, with no regulators or licenses.
* Lenders are ranked by the Credit Source Matrix (CSM), which reflects their transaction history and reputation.

{| class="wikitable"
|+ Credit Source Matrix (CSM) Factors
|-
| '''Factor''' || '''Description'''
|-
| **Ledger Transaction History** || Total CU issued as loans; repayment success rates; contract term precision; historical performance.
|-
| **Tier** || Higher-tier lenders receive better loan demand, not by rule, but by perception of stability and enforcement muscle.
|-
| **Enforcement Capability** || Lenders with robust collection mechanisms (milcorp affiliations, Tier-3 contract claws, data leverage) are more trusted.
|-
| **Market Reach** || How broad is their counterparty network? Do their offers show up in public contract pools across multiple zones?
|-
| **Settlement Velocity** || Do they pay out fast? Do they delay issuance? Speed creates trust.
|-
| **Reputation Nodes** || Lenders may have “trust anchors” (other powerful entities vouching for them). Endorsements from known names (e.g., Korm) skyrocket demand.
|-
| **Conversion Record** || How many debts they’ve _resolved_ via liquidation versus mutual payoff. Too aggressive? They become feared. Too passive? Undervalued.
|}

== Taxes ==

Vex operates on a unique taxation system, focusing on territory, contracts, and access.

{| class="wikitable"
|+ Tax Types
|-
| '''Type''' || '''Description'''
|-
| **Territorial Extraction** || Operating on someone else's property, whether physical (Velv, a data pipe, an orbital corridor) or digital (a comms grid, AI framework). You pay a **cut of your CU** to the owner.
|-
| **Contractual Commissioning** || Executing a contract using a megacorp's infrastructure. You owe **commission fees**, encoded into the ledger contract automatically.
|-
| **Access Fees** || Operating within a Tier or district controlled by a corporation, paying for CU-based residency, water, air, compute cycles, or physical protection.
|}