Appendix C - UFD Pricing Protocol (One-Page)
Define a simple, repeatable protocol for measuring prices using a Unit of Fixed Denominator (UFD) while allowing settlement in existing currencies.
This protocol corrects measurement without requiring monetary reform. UFD establishes a common global measure for prices without dictating the payment method.
1. Unit Definition
UFD is a unit of account with a fixed and immutable denominator.
The denominator is finite by definition.
For public reference and verification, the denominator is aligned with a known finite quantity: the total possible number of units corresponding to Bitcoin’s total supply, expressed as satoshis.
One UFD corresponds to one unit of this fixed count.
UFD is a measuring unit, not a currency.
2. Pricing Rule
All prices are expressed exclusively in UFD.
The UFD price represents the measured exchange value of a good in UFD units.
Under this rule, changes in monetary conditions no longer provide a valid basis for price adjustments.
Prices may change only when real conditions change:
supplier cost
logistics or production
scale or efficiency
deliberate margin decisions
3. Display Rule
Shelf and product labels show only UFD prices.
No currency symbols or conversion references appear at the pricing layer.
Example:
Price: 2,000 UFD
4. Basket Accumulation
Totals are accumulated in UFD.
The customer interacts with a single unit of measure until checkout.
5. Settlement Rule
Settlement occurs only at checkout.
Conversion is applied only after the settlement method is selected.
Settlement media may include any existing currency.
Operational question at checkout:
“How many units of this settlement medium correspond, at this moment, to this UFD amount?”
6. Conversion Rule
Conversion rates are external, momentary and publicly observable.
Conversion does not affect prices.
Volatility is absorbed by the settlement medium, not by the unit of account.
7. Review Cadence
Prices are reviewed periodically.
Reviews are scheduled and discrete.
Continuous repricing is explicitly avoided.
Suggested cadence:
perishable goods: weekly or biweekly
standard goods: monthly
stable goods: quarterly or longer
8. Internal Accounting
Inventory is valued internally in UFD.
Cost basis is recorded in UFD.
Margins are evaluated in UFD.
Fiat accounting may coexist for regulatory purposes.
9. Minimal Implementation Requirements
To implement this protocol, a business needs only:
a defined fixed denominator
UFD price labels
a conversion mechanism at checkout
No new payment rails are required. No customer training is required.
10. Protocol Status
This protocol is minimal by design.
It defines correctness, not optimization.
User experience layers, automation and integrations may be added without altering the measurement logic.
Closing Statement
This protocol does not attempt to change behavior. It corrects measurement.
When measurement is correct, behavior adjusts on its own.