Schedule of Vaults · Central Bank of Bitcoin

Section I

The Five Levels

There are five levels of member bank vault. Level One is the smallest. Level Five is the largest. Every chartered vault is one of them and no vault is anything else.

The plates below are the five levels. They are printed at a common size. The Bank does not use photographs to make a comparison of size. That comparison is made in Section III, as a figure, where it can be checked.

Level I

Weight: 2
Odds at activation: 45 in 100
Receives: 1.0 × a Level One

Level II

Weight: 3
Odds at activation: 25 in 100
Receives: 1.5 × a Level One

Level III

Weight: 4
Odds at activation: 15 in 100
Receives: 2.0 × a Level One

Level IV

Weight: 5
Odds at activation: 10 in 100
Receives: 2.5 × a Level One

Level V

Weight: 6
Odds at activation: 5 in 100
Receives: 3.0 × a Level One

Section II

Assignment

A vault's level is assigned at activation.

It is assigned by fate. It cannot be applied for and it cannot be appealed. The member does not choose it. The Bank does not choose it. The parent organization does not choose it. Nobody chooses. That is what makes it fate, and fate, the reader will recall, is permanent.

Level	Odds at activation	Expected at 2,100 vaults
Level I	45 in 100	945
Level II	25 in 100	525
Level III	15 in 100	315
Level IV	10 in 100	210
Level V	5 in 100	105
Total	100 in 100	2,100

Figure 2. The odds at which each level is assigned. They are the same for every vault and they do not change with the size of the census.

The Bank does not consider this arbitrary. The Bank considers it impartial.

Fate is documented and fate is executed on chain. The reader will be able to verify that no thumb was on the scale, because the scale does not have room for thumbs.

Section III

Weight

Every level carries a weight. Weight is the only quantity that decides how a distribution is divided, and the ladder is short on purpose.

LevelWeightAgainst a Level One

I21.0×

II31.5×

III42.0×

IV52.5×

V63.0×

Figure 1. The weight of each level, and what a vault of that level receives from a distribution against a vault of Level One. The steps are the weights themselves, so the ladder cannot disagree with the schedule.

A Level Five vault receives three times a Level One. Not sixteen. The Bank is not a casino. The Bank is a bank. Your level is assigned by fate, and fate is not for sale.

The average vault carries a weight of 3.05. That figure is the same whether 240 vaults are activated or 2,100, because it is decided by the odds and the weights and by nothing else.

Section IV

The Distribution Rule

The Bank generates revenue. Every revenue event is divided as set out in Section VI of Purposes and Functions: eighty-five percent to the vaults, fifteen percent retained by the Bank. The division is permanent.

The eighty-five is divided among activated vaults, by weight.

the distribution × that vault's weightthe sum of the weights of every activated vault

The sum on the bottom line is the denominator. The Bank publishes it at every settlement, with the count at each level, so that any member may do the division themselves and arrive at the figure the Bank arrived at. Section VI.

Three consequences follow. The Bank states them rather than leaving them to be discovered.

An unactivated vault carries a weight of zero.It is not in the denominator and it receives nothing. A charter that is held and never activated makes every activated vault larger. The Bank passes no judgment on this, in writing.
One hundred percent of the eighty-five lands.The Bank retains nothing from it, holds nothing back against a later date, and does not round in its own favour. The columns in Section V sum to the whole distribution because there is nowhere else for it to go.
A failed bank leaves the denominator.Section IX permits a member to destroy a vault on any day and take one hundred percent of its contents. A destroyed charter is not reissued. Every distribution after it divides among fewer vaults, and every surviving bank is permanently larger.

Section V

Worked Examples

The Bank prefers arithmetic to assurance. What follows is this schedule applied to three censuses at a distribution of one thousand dollars. The figure is chosen because it is round and it means nothing else. Every column below can be reproduced by the reader from the weights in Section III and the counts shown.

Level	Vaults	Weight each	Weight total	Each vault receives	The level takes
Level I	108	2	216	$2.73	29.5%
Level II	60	3	180	$4.10	24.6%
Level III	36	4	144	$5.46	19.7%
Level IV	24	5	120	$6.83	16.4%
Level V	12	6	72	$8.20	9.8%
Total	240		732	$1,000.00	100.0%

Figure 3. The 240 founding charters, all activated. Denominator 732. A distribution of $1,000.00 divides as shown. The final column is what all vaults of that level receive together.

Level	Vaults	Weight each	Weight total	Each vault receives	The level takes
Level I	945	2	1,890	$0.31	29.5%
Level II	525	3	1,575	$0.47	24.6%
Level III	315	4	1,260	$0.62	19.7%
Level IV	210	5	1,050	$0.78	16.4%
Level V	105	6	630	$0.94	9.8%
Total	2,100		6,405	$1,000.00	100.0%

Figure 4. The permanent ceiling of 2,100 member banks, all activated. Denominator 6,405. A distribution of $1,000.00 divides as shown. The final column is what all vaults of that level receive together.

The same money, fewer vaults

A charter that is not activated is not in the denominator. The effect is not decorative. Of the 240 founding charters, suppose 20 are activated and the rest are held. The same $1,000.00 then divides as follows: a Level One vault receives $32.79 in place of $2.73, which is 12 times as much, and a Level Five receives $98.36 in place of $8.20. Nothing about the schedule changed. Only the denominator did.

Section VI

Census and Denominator

At every settlement the Bank publishes the count of activated vaults at each level and the sum of their weights. That sum is the denominator. It is published so that any member may do the division themselves and arrive at the figure the Bank arrived at.

The census stands as follows.

Level	Weight each	Each vault receives, per $1,000.00
Level I	2	none
Level II	3	none
Level III	4	none
Level IV	5	none
Level V	6	none
Denominator

No vault has been activated. The denominator is zero. No distribution has been made.

Section VII

The Application of $CBOB

A vault's level does not move. It is assigned at activation, by fate, and fate has already been described in Section II as permanent. A level cannot be applied for, it cannot be appealed, it cannot be bought, and it cannot fall. The reader who arrived at this section hoping to purchase a way up the ladder is directed back to Section II, which anticipated them.

What may be altered is a vault's emissions: the weight it carries into a distribution, and therefore the share of that distribution it takes. Emissions are altered by burning $CBOB, the internal unit described in Section VII of Purposes and Functions. This is what the unit is for and it is the reason the unit exists. $CBOB is obtained from the Bank. It is not obtained anywhere else. What the Bank intends for the value of the unit is stated in that same section and is not repeated here, the Bank having already said it once, in bold.

An alteration is temporary. It holds for a period and then it lapses, and on lapsing the vault carries the standard weight of its level again, as though nothing had happened, because in the ledger nothing has. Nothing accrues. Nothing carries forward. Nothing is owed. The Bank is aware that this is not how the sector words it.

The weights in Section III are the standard weights. They are what a vault carries if nothing is done to it. A vault carrying an alteration stands in the same census and the same denominator as every other vault, at whatever weight it is carrying on the day of the settlement, and the arithmetic in Section IV is unchanged. There is no second ladder. There is no separate pool. There is one denominator and everybody is in it.

The Bank has not announced what an alteration of emissions is worth, what one costs, the period for which one holds, or the date on which any of it opens. Those are four of the five matters in Section VIII, which is where the reader should go next and is shorter than this one.

Section VIII

What This Schedule Does Not State

A schedule is only useful if the reader can tell where it stops. The following are not settled. The Bank declines to imply otherwise, and the reader should treat any figure circulating on these five points as somebody's guess.

The mechanism by which fate is executed on chain.
What an alteration of emissions is worth.
What an alteration of emissions costs.
The period for which an alteration holds, and the date on which alterations open.
The interval at which distributions are settled.

The Bank will publish each of these in its own order, as it has published everything else.