This article is unfinished and very raw. I'am currently working on a paper about this. (2020-11-20)
Head Issuance - Seigniorage and money is distributed directly to everyone. Think helicopter money only, no other money distribution! Seigniorage to the people!
Helicopter money
Helicopter money is the distribution of money to everyone to get inflation back. If an economy is stuck with a deflationary scenario this should be a solution for central bank to restart the economy by creating inflation and to speed up velocity of cash.
Helicopter money has been discussed widely as a solution of last resort, but not implemented anywhere. Some countries distributed cash in the COVID-19 pandemia, notably the US. This cash was coming from the government, not directly from the printing press.
Head Issuance
Head Issuance is a similar concept like helicopter money. Head issuance is a far more radical approach. Money distribution will be solely over people. This way seigniorage will be distributed fairly. By raising or lower the monthly distribution inflation can be controlled. People will still bring the excess money to commercial banks, and the banking system will work the same way they do now.
Head issuance can be viewed as a move back to the roots of money: Before coins of precious metals have been used, natural things like shell or cacao beans have been used as neutral means of exchange. Distribution of natural money was decentralized innately, no central entity head control over it.
Later, with the start of constitution of governmental bodies, these entities started to create standardized coins and push the acceptance of these coins by paying and taxing people in these currencies.
These institutions could only create money in a centralized way because money had to be physical and there was no other way to distribute.
Digitalization of money and the development of blockchain and programmable money created the opportunity to distribute these currencies over the internet in a trust less way. New concepts of money distribution are finally possible.
-- raw stuff --
At first, as money mostly a relativly rar and uniform good was choosen like shell money, cocoa beans.
To make it fungible mostly a relativly rar and uniform good was choosen like shell money, cocoa beans [1] and later silver and gold. Shell money did produce themself, so collecting was all it needed. Cocoa beans needed to be farmed by people. Precious metal needed minting and a form of distribution.
The power to create coins always was in the hand of the powerfull. Minting has been done by lings, landlords and and later by nations. Precious metal needed minting and a form of distribution. As long as money consisted of precious metals and other rare money-like things, the money creation profit was small. This difference in value between the bare gold and the minted coin is called seigniorage.
This profit change with the introduction of fiat money, you print a $100 paper bill for 0.15 and and get a seigniorage of $99.85. Today this profit is given to the goverment.
Until the invention of Computer and Computer networks money was bound to physical things.
It therefore had to be produced centrally and put into circulation.
https://www.wikiwand.com/de/Vollgeld-System
Glossar
https://www.snb.ch/de/mmr/reference/quartbul_1998_4/source/quartbul_1998_4.de.pdf
https://onlinelibrary.wiley.com/doi/abs/10.1111/1467-6435.00038#:~:text=On%20the%20one%20hand%2C%20monetary,in%20order%20to%20raise%20seigniorage.&text=Thus%2C%20the%20way%20central%20bank,can%20influence%20fiscal%20behavior%20considerably.
https://www.investopedia.com/terms/s/seigniorage.asp
https://www.investopedia.com/terms/f/fiatmoney.asp
Seigniorage: https://www.wikiwand.com/en/Seigniorage
https://en.wikipedia.org/wiki/Shell_money
https://www.nbbmuseum.be/en/2013/03/kakao.htm
