^vcurrencies serve as a stable unit of currency within the Vow ecosystem. Each unit is backed by its ability to claim an equivalent value in goods and services across the ecosystem, as well as an additional deposit of Vow.

Because the business has vowed to accept back the the total value of ^vcurrencies they issue, each ^vcurrency always has a value equal to the local fiat currency.

This means that in a US dollar based market, if a merchant issues $20 of ^vcurrencies, it will have locked up $4 of Vow tokens in order to issue that amount of ^vcurrency and at the same time guarantee to accept back the v$20 against their goods and services when the consumer wishes to redeem them.

At the point of redemption, the issuer may unlock and recoup their original Vow deposit.

^vcurrencies function in a manner that renders them indistinguishable from digital fiat money. Given their unique characteristics, they can be employed in any capacity to facility trade or financial transactions where price stability is required.

^vcurrency will always have a value equal to its domestic fiat equivalent when conducting a commercial transaction at the point of sale within the ecosystem. Whenever a holder of ^vcurrency wishes to spend their currency at a participating retailer, they will be able to reduce the cost of goods and services acquired, equal to the value of their ^vcurrency balance. The price of the currency will never fluctuate from parity.

If a user wishes to sell their ^vcurrency balance for another currency or asset, they may do so at the prevailing market rate. The secondary market value for ^vcurrencies, just like for any other free exchange market, is not controlled by the issuers. Whoever acquires ^vcurrencies in the secondary market at the prevailing price will have the ability to spend their ^vcurrencies at a value par with fiat within the ecosystem.

There is no central company, government, private party or asset which is required to make the promise of providing a backstop value to ^vcurrencies at any time.

Additionally, there is no company, government or individual which holds an investment asset stated to provide ^vcurrencies with underlying value, as would be the case with all stable coins. Each ^vcurrency is also not “almost” linked to a fiat currency, as is the case with some stable coin models.

In contrast to every known stable coin and every known complementary currency, each ^vcurrency remains precisely stable in price with a definitive backstop value equal 1:1 with local fiat currency in all ecosystem merchants at all times. This is because issuers in the ecosystem vow to accept back each ^vcurrency against their goods and services at par with local fiat.

Additionally, all issuers lock up in a smart contract, 20% of the value of their issuance as additional security to the ecosystem, over and above their vow to accept them back upon redemption.

^vcurrencies are unique in that they are accepted by businesses, there is no asset held or promise made by a central party to maintain their value. In addition they are decentralized in terms of their issuance, acceptance and governance.

The primary economic motivation for a consumer or business to acquire vcurrencies  lies in their ability to spend the acquired currency at par with domestic fiat. If a buyer can purchase ^vcurrencies at a discount in the secondary market, they will have gained a benefit equivalent to the discount.

In the event the need arises for an ecosystem participant to have fiat cash or to make a purchase that cannot yet be made through the ecosystem, they may choose to convert their existing ^vcurrency balance to another currency.

Each issuance of ^vcurrency happens through an issuer in the ecosystem. In order for a coin to enter circulation, the issuer had to have made the required Vow deposit in order to be able to mint coins. Once their Vow deposit has been locked up, ^vcurrency distribution can commence.

When a consumer makes a purchase at a participating business, their transaction is proof of demand for ^vcurrencies within the network. Transactions are verified by regulated financial institutions in order to ensure the integrity of the distribution process. Each transaction can trigger distribution of the currency.

All participating merchants within the ecosystem are displayed within the Vow app, as well as partner publisher apps. Any participant may download the necessary applications and search for the nearest location that accepts ^vcurrency.

Payment with vcurrencies is simple. Once you have downloaded the Vow app or any partner publisher app, you will have acquired a Vow wallet after successful registration. 

You can either collect vcurrencies via shopping at participating retailers and earn vcurrency based rewards or purchase vcurrencies in the app. Either method will result in a positive vcurrency balance in your wallet.

When you visit a participating retailer, you will be able to use your existing balance on your next purchase by simply using the pay button on your app and following the instructions on your phone which will illustrate to you how to scan the retailer’s QR code to complete the transaction.

All users have unique Ethereum wallet addresses which they can either send to others as their destination address or present as a QR code for scanning. Once scanned, the sender can complete the transfer.

Solutions claiming to be fiat or asset backed tokens require the acceptor to trust the issuing entity. Belief needs to be maintained that the monies claiming to be held on deposit are in fact there.

In the instance of US dollar backed stablecoins for example, the claim is that for each coin there is an equivalent US dollar held on account to back that specific stablecoin.

Each issuer in the Vow ecosystem backs their coins with a Vow to accept it back against their goods and services as payment at a fixed value, as opposed to a cash security backing it.

Cryptocurrencies are not used for everyday commercial transactions. Stablecoins have not been successful at achieving merchant acceptance either.

Solutions like crypto backed prepaid cards have also fallen short of successfully adding utility to the market, as they convert crypto and deliver fiat to the merchant.

^vcurrencies are issued and therefore are accepted by businesses within the ecosystem. It is a currency they create, control and as a consequence, believe in.

Any fiat currency can readily be converted to their ^vcurrency equivalent and be immediately spent at any participating business within the ecosystem.

However, other asset classes can also gain utility through their conversion to ^vcurrency. Any holder of crypto can sell their holdings and acquire ^vcurrencies to spend.

The conversion of alternative currencies into ^vcurrenices provides new liquidity for participating businesses in a manner that is suitable for trade.

Crypto currencies are known for their volatility. This phenomenon has played a significant role in the prevention of their large-scale adoption by businesses.

Price instability has been mitigated in the Vow ecosystem by ensuring the exchange rate at which ^vcurrencies are accepted by issuers at the point of sale.

Whilst ^vcurrencies are saleable in the secondary market between participants at any price, their redemption value will always be at par with their fiat counterpart.

The regulatory environment for stablecoins is in its early stages of development. In many jurisdictions the market is lagging behind with putting the proper controls in place.

Vow does not fall under the newly forming regulatory controls as it does not claim to be a form of money or make any promises to its holder.

^vcurrencies, in and of themselves do not represent a unit of value but rather the inverse, a unit of discount against goods and services sold and hence fall outside of such regulations.