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Crypto Pump Control – DirtiCoin Value

crypto pump control dirti coin value

My “Balancing the Barbell” blog post was published back in February 2022. 

At the time, Crypto currencies were flying high and flush with liquidity. I had several polymaths explain to me why I was wrong about Crypto and just didn’t understand algorithmic liquidity protocols.   

In October 2022, things looked a little different. I was right, Bitcoin is just like gold, and Ethereum’s utility value is limited to its use, both have constrained liquidity. All other crypto currencies are irrelevant in comparison. I invite you to take the opportunity to read my article, “Balancing the Barbell.”  

Others are recognizing the liquidity problem too. Here is a real-world project called DirtiCoin. They’re doing exactly what I described by creating a 3rd balance sheet to manage liquidity and value between crypto (digital) and fiat (analog) currencies. I hope you enjoy the read: 

Crypto Pump Control – DirtiCoin Value 

Crypto Pump Control – Scarcity is one of the determining factors of value for any medium of exchange, especially currency. The scarcity, or abundance, of a currency is referred to as the monetary supply. When the amount of currency in circulation goes down, the relative value of each unit of currency goes up. When the amount in circulation goes up, the value of each unit of currency goes down. This is true except when the value of the currency is tied to some asset like gold, silver, or in the case of DirtiCoin tied to real estate assets. 

Monetary Supply 

The monetary supply of US Dollars is managed by the Federal Reserve Bank of the United States acting under limits set by the US Government. The monetary supply of DirtiCoin is managed by DirtiCoinMinting, LLC (the Company) acting under limits set by the DirtiCoinDAO (the DAO). You, the buyers of DirtiCoin are the DAO. 

The DAO has exclusive control over the key variables directly affecting the DirtiCoin monetary supply. These controls are the Coin Cap and and the authority to destroy (burn) currency. These controls provide stability to the value of DirtiCoin as a currency and a path of growth for the DAO. Putting these controls into the hands of the DAO lets DirtiCoin buyers control over the most important variables to prevent inflation of the currency. 

The Coin Cap 

The Coin Cap is the total amount of DirtiCoin which can be put into circulation (minted). It is an outer boundary for the Company, not a mandated goal. The Coin Cap was set when DirtiCoin was created. The Company has no authority to unilaterally alter the Coin Cap.  

Setting a limit on the supply and placing control of that number into your hands gives you control over inflation relative to DirtiCoin. When conditions are right, the Company will propose an increase or decrease in the Coin Cap. No one cares more about your wealth than you do. No one should have more control over your wealth than you.  

Not a Mandate 

The Company’s current financial model is built on the assumption that a Coin Cap of 500 million DirtiDollars (DiD) (see DirtiCoin Denominations for an explanation of the DiD denomination) is sufficient for the first 5 to 10 years. Before hitting that Coin Cap the Company will put its expansion plans in front of you along with a proposal to increase the Coin Cap to support those plans. All the Company’s plans are designed to make the benefits of DirtiCoin available to more and more people while protecting their wealth against inflation and volatility. 

As mentioned, the Coin Cap is not a mandate to automatically mint 500 million. 

To sustain the value of DirtiCoin the Company must acquire real estate. That takes time. Accordingly, the Company has created a schedule for the incremental minting of DirtiCoin over time in modest amounts. The initial minting in 2022 is planned for 15 million DiD. 

The Model 

A 500 million DiD Coin Cap may seem large. However, It should be viewed in the context of an eventual global reach of DirtiCoin. Initial models indicate that 500 million DiD will require five to ten years to fully deploy in USA markets. Out initial model absorbs less than 300 million DiD in the five-year startup period.  

Comparing the DiD Coin Cap with other cryptocurrencies and share offerings of some major corporations demonstrates the reasonableness of the Coin Cap and the initial minting volume. 

Table 0-1 Market Cap Comparisons 

DirtiCoin (DID)  15 million  ~ $100 USD  $1.5 billion 
Ethereum (ETH)  119.2 million  ~ $2,000   $221.2 billion 
Bitcoin (BTC)  18.9 million  ~ $30,000   $561.4 billion 
IBM  899.4 million shares outstanding  $137  $123.3 billion 
Wells Fargo  3.89 billion shares outstanding  $45   $172 billion 
Zions Bank  151.4 million shares outstanding  $56  $8.5 billion 
Citigroup  1.9 billion shares outstanding  $54  $105 billion 

No More No Money Blues 

Every time more DiD is minted it has a modest inflationary impact on your wealth. However, the impact is both modest and temporary. 

The impact is modest because the subsequent sales of new DiD adds liquid assets to the Ledger, supporting the value of your DiD. 

The impact is temporary because as the Company uses those liquid assets to buy real estate assets so the overall value of the Ledger increases. 

Who Controls the Monetary Supply 

The DAO is the only authority which can approve increasing or decreasing the supply of DirtiCoin. However, the Company is the only entity authorized to mint DirtiCoin. DirtiCoin is a smart contract based on the ERC-20 Ethereum protocol. The smart contract contains the mechanisms that carry out the actions of the DAO (for more on this see DirtiCoin Technical Specifications). 

Within the bounds of the Coin Cap, the Company will decide how many DirtiCoin will be minted and released for sale. This decision will be based on the ability of the Company to effectively and timely convert the wealth entrusted to DirtiCoin into real estate. 

Crypto Pump Control – Circulation 

Circulation is simply a statement of how much DirtiCoin has been minted by the Company. Circulation can never exceed the Coin Cap. As the Company mints additional DirtiCoin it will update the Circulation.  

The Asset Ledger 

The Asset Ledger is the key connection point between DirtiCoin and the Company. It is also a key connection point between the Company and the rest of the world. 

Updated monthly, the Asset Ledger (the Ledger) allows anyone to quickly and easily calculate the value of DirtiCoin. It shows the value of the assets the Company has pledged to support the value of DirtiCoin. Dividing the value of the Asset Ledger by the number of DiD in circulation demonstrates the real value of DirtiCoin, ending speculation. To further promote transparency and confidence, the Company will have outside auditors validate the Asset Ledger values every six to twelve months and publicly post the results along with the Asset Ledger. 

Asset Ledger States 

The valid states for the Asset Ledger are: 

  1. Initializing (State = 0) – this state is used immediately after the minting of DirtiCoin (either at startup or subsequently) until the real estate and liquid asset levels of the Asset Ledger can be brought into compliance with the predefined tolerances. 
  2. Balanced (State = 1) – this state indicates that the ratios of real estate and liquid assets are within acceptable tolerances. 
  3. Real Estate Out (State = 2) – this state indicates that less than 50% of the Asset Ledger assets are in real estate. 
  4. Liquid Out (State = 3) – this state indicates that less than 20% of the Asset Ledger assets are liquid. 

Asset Ledger Changes 

The Asset Ledger will receive periodic updates to the values of the assets supporting DirtiCoin and the volume of DirtiCoin in circulation. These changes in asset values or DirtiCoin in circulation will not trigger any actions by the DAO. These transactions will incur gas fees as the company updates the Asset Ledger in the blockchain. 

Changes to the DirtiCoin in Circulation occur as the Company mints and releases additional DirtiCoin within the Coin Cap limit. 

When the Company changes the State of the Asset Ledger to one of the out of balance states, other than “Initializing”, the Company will post a proposal in the Asset Ledger. The Asset Ledger will show the voting results. Based on the results, the Company will take the appropriate, DAO-approved actions to bring the Asset Ledger back into balance. 

Aside from the rare changes to the Coin Cap there are some routine changes that will occur in the Ledger. Routine actions which directly update the Asset Ledger include changing the Circulation, adding audit results, and changing the value of the assets in the Ledger. Changing those values will be a transaction requiring a gas fee but won’t incur action from DAO beyond the approval vote already delivered. 

Crypto Pump Control – Initializing and Deployment 

The Initializing state for the Asset Ledger occurs whenever there is a release of DirtiCoin by the Company. The Initializing state remains in effect until the Company has deployed the DirtiCoin in Circulation and assets levels are within tolerances. 

To change the state from Initializing to Balanced does not trigger a DAO vote. 

Changing the Ledger state from Balanced to either Out-of-Balance state will trigger a DAO vote. The internal Company Asset Ledger will alert the Company to an impending out-of-balance condition. When that happens, the Ledger will initiate a Request for Proposal to the Company. Once the proposal is submitted by the Company, the Asset Ledger will change the State to the appropriate out of balance indicator and submit the proposal to the DAO for a vote. 

The Asset Ledger will tally the votes received and post the results in the Asset Ledger and notify the Company of the results. 

DirtiCoin monitors the Asset Ledger. When the asset ratios are out of tolerances the smart contract will require a vote to either increase or decrease the supply of DirtiCoin. In most cases, Management of the Company will anticipate these conditions. They will proactively precipitate a vote aligned with a recommendation to increase the supply by a recommended amount.  

Voting Decisions 

Results of the vote will be provided to the Company. Depending upon the outcome the Company will either mint new DirtiCoin to increase the currency supply or buyback and burn DirtiCoin to decrease the currency supply. These are some of the most crucial steps in Crypto Pump Control. 

In order to support the initial value of DirtiCoin the Circulation will, for many years, be well below the Coin Cap. The portion of the Coin Cap minted by the Company in any release is based on the ability of the Company to convert the wealth invested into real estate in a reasonable amount of time, without incurring unreasonable risks by acting too hastily. 

As the use of DirtiCoin increases and opportunities to invest in real estate increase, the Company will periodically request permission from the DAO to increase the Coin Cap. 

Crypto Pump Control – Key Metrics in the Asset Ledger 

The Asset Ledger gives both the public at large and DirtiCoin buyers in particular, a line of sight to key information determining the true market value of DirtiCoin. Although there are a number of metrics shown in the Asset Ledger, the most important are the Ledger State, Coin Cap, Circulation, Total Assets Value, and DiD Value.  

Table 4 Projected Asset Ledger First 3 Years 

Asset Ledger State  Year 1  Year 2  Year 3 
CoinCap  500,000,000     500,000,000    500,000,000    
Circulation  15,000,000  $1,500,000,000    65,000,000  $6,280,755,000  115,000,000  $11,545,477,09 
Total Assets Value  15,366,408  1,536,640,848  69,129,043  6,679,732,044  132,000,963  13,252,296,489 
RE Assets  10,116,408  1,011,640,848  46,379,043  4,481,467,794  91,750,963  9,211,379,506 
RE %  67%    71%    80%   
Liquid Assets  5,250,000  525,000,000  22,750,000  2,198,264,250  40,250,000  4,040,916,983 
LA %  35%    35%    35%   
DiD Value    $102.44    $102.77    $115.24 

As Seen.. 

Ledger State settings will change each time a coin release occurs. The Asset Ledger State is set to “Initialize” when the Company is minting new DirtiCoin. This is because the ratios of real estate and liquid assets will be temporarily outside of balance. When the ledger is reasonably within the required limits, we set the Asset Ledger to “Balanced.” Otherwise, the Ledger State will only change if the target variances for the asset ratios are exceeded. 

For a more detailed understanding of how DirtiCoin holders will vote to manage the supply of DirtiCoin please see DirtiCoin Technical Specifications. 

The Breakdown 

In addition to the Ledger State and DirtiCoin information, the Asset Ledger shows the fair market value of the real estate investments and liquid assets held in the Company treasury. The ratios of Real Estate Assets Value and Liquid Assets Value is shown as a percentage. 

Total Assets Value of DirtiCoin is the sum of the RE Assets and the Liquid Assets. When the Total Assets Value meets or exceeds the Circulation this indicates that the Company is protecting your wealth against inflation and volatility. 

RE Assets reflects the fair market value of real estate assets held by the Company. When the Company owns only a partial share of an asset only the value accruing to the Company is reflected. The Company will never invest more than 70% of the fair market value (FMV) in any real estate asset. The 30% difference is a safety margin to protect your wealth against downturns in the real estate market and against any unsuccessful real estate deals. 

Crypto Pump Control – Breakdown Continued 

RE % is the proportion of assets which are held in real estate, derived by dividing the RE Assets into the Total Assets Value. 

Liquid Assets are the assets held by the Company in the form of both fiat and cryptocurrencies. For fiat, this is USD. For cryptocurrencies this is Bitcoin (BTC), Ethereum (ETH), DirtiCoin (DiD), and a modest amount of stablecoin such as USD Tether (USDT). 

LA% is the proportion of Total Assets Value held in liquid assets, derived by dividing the Liquid Assets into the Total Assets Value. 

DiD Value is the current USD market value of one DiD, derived by dividing the Total Assets Value by the Circulation. 

Clear and Visible 

Together, the information provided in the Asset Ledger gives you unprecedented visibility Into how well your wealth is being managed. Published monthly, it also deters currency speculators by clearly demonstrating the factual basis for the value of DirtiCoin. As a factor in Crypto Pump Control the Company anticipates that this frequent, public disclosure will significantly reduce speculation driven volatility for DirtiCoin. 

It is the primary and ongoing duty of the Company to actively monitor and manage the Asset Ledger and to focus on Crypto Pump Control. The Company takes all reasonable and legal measures to keep the asset balances within tolerances and to support the inherent value of DirtiCoin.  

“Crypto Pump Control – DirtiCoin Value” – Republished with permission from 

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