# Currencies and Tokens on Verus

How to create tokens, basket currencies, and entire blockchains — without writing code

On Verus, anyone with a VerusID can create a new currency. There are no smart contracts to write, no audits to pass, no permission to seek. You run a single command — definecurrency — and the blockchain handles the rest.

There are three types of currencies you can create, each with increasing complexity:

┌─────────────────────────────────────────────────────┐
│  Currency Types on Verus                            │
├─────────────────────────────────────────────────────┤
│                                                     │
│  Simple Token (options: 32)                         │
│  → A standalone token. No reserves, no backing.     │
│  → Like creating an ERC-20 on Ethereum.             │
│                                                     │
│  Fractional Basket (options: 33)                    │
│  → Backed by one or more reserve currencies.        │
│  → Built-in AMM for automatic trading.              │
│  → Like a Uniswap pool, but at the protocol level.  │
│                                                     │
│  PBaaS Chain (options: 264)                         │
│  → An entirely new blockchain.                      │
│  → Own consensus, own miners, own identity system.  │
│  → Connected to Verus via cross-chain notarization. │
│                                                     │
└─────────────────────────────────────────────────────┘

A simple token is the most basic currency type. It exists on the Verus blockchain as a named asset with a supply you control.

• options: 32 — The TOKEN flag (0x20)
• proofprotocol — Controls who can mint and burn tokens

The proofprotocol setting determines the fundamental nature of your token:

proofprotocol: 2 (centralized) is useful for:

• Stablecoins (mint/burn to maintain peg)
• Service credits (mint as needed, burn when redeemed)
• Platform tokens where the issuer needs supply control
• Testing and prototyping

proofprotocol: 1 (decentralized) is for tokens where fixed supply is a feature — similar to Bitcoin's 21 million cap.

verus definecurrency '{
  "name": "mytoken",
  "options": 32,
  "proofprotocol": 2,
  "idregistrationfees": 0.01,
  "idreferrallevels": 0,
  "preallocations": [{"myidentity@": 1000000}]
}'

This creates a token called mytoken with 1,000,000 tokens pre-allocated to myidentity@. Because proofprotocol is 2, the identity holder can mint more later.

A fractional basket currency is backed by reserve currencies. It has a built-in automated market maker (AMM) that allows anyone to convert between the basket currency and its reserves at any time.

This is covered in depth in Basket Currencies and DeFi. Here's the summary:

• options: 33 — FRACTIONAL (0x01) + TOKEN (0x20) = 0x21 = 33. Add ID_REFERRALS (0x08) for 41, or other flags as needed
• currencies — Array of reserve currency names or i-addresses
• weights — How much each reserve currency contributes (must sum to 1.0; minimum 0.1 per reserve; up to 10 currencies total)
• initialsupply — Total supply of the basket token after launch

verus definecurrency '{
  "name": "mybasket",
  "options": 33,
  "currencies": ["VRSCTEST", "USDC"],
  "weights": [0.5, 0.5],
  "initialsupply": 1000000,
  "initialcontributions": [100000, 500000],
  "idregistrationfees": 5,
  "idreferrallevels": 3
}'

PBaaS (Public Blockchains as a Service) chains are entirely new blockchains launched from Verus. They have their own:

• Block production (mining/staking)
• Identity namespace
• Transaction history
• Currency system

But they remain connected to Verus through notarization — periodic proofs posted back to the Verus chain that prove the state of the PBaaS chain.

• options: 264 — IS_PBAAS_CHAIN (0x100) + IDREFERRALS (0x8) = 0x108 = 264
• Requires nodes (bootstrap nodes for the new network)
• Requires eras (block reward schedule)
• Can include a gateway converter for cross-chain trading

verus definecurrency '{
  "name": "mychain",
  "options": 264,
  "idregistrationfees": 100,
  "idreferrallevels": 3,
  "notarizationreward": 0.0001,
  "eras": [{"reward": 600000000, "halving": 1051924, "eraend": 0}],
  "nodes": [{"networkaddress": "1.2.3.4:12345", "nodeidentity": "mynode@"}],
  "blocktime": 60
}'

Every currency goes through a lifecycle from definition to active trading:

  ┌──────────┐     ┌──────────────┐     ┌────────┐     ┌───────┐
  │  Define   │ ──→ │ Preconvert   │ ──→ │ Launch │ ──→ │ Trade │
  │           │     │ (optional)   │     │        │     │       │
  └──────────┘     └──────────────┘     └────────┘     └───────┘

You call definecurrency with your parameters. This creates a pending currency definition on the blockchain. The currency is not yet active.

Requirements:

• You must own the VerusID matching the currency name
• That identity must not already have an active currency
• You must pay the definition fee

For basket currencies, there's a preconversion period before launch. During this time, people can contribute reserve currencies in exchange for basket tokens at the initial price.

Key preconversion parameters:

• minpreconversion — Minimum reserves needed for the currency to launch. If not met, contributors are refunded.
• maxpreconversion — Maximum reserves accepted (caps participation)
• prelaunchdiscount — Early contributors can get a discount
• prelaunchcarveout — Percentage of preconverted reserves kept by the creator

Once the preconversion period ends (at the specified startblock), the currency activates. For baskets, the initial price is determined by the ratio of contributed reserves to initial supply.

After launch:

• Simple tokens can be sent via sendcurrency
• Basket currencies can be converted to/from their reserves via sendcurrency using the built-in AMM
• PBaaS chains operate independently with cross-chain bridges back to Verus

When you define a currency, its name becomes a namespace for identities. This means:

• People can register SubIDs under your currency's name (e.g., user.mycurrency@)
• You control the registration fee via idregistrationfees
• You control referral levels via idreferrallevels

This creates a natural business model: launch a currency, set a SubID registration fee, and earn revenue as people register identities in your namespace.

mycurrency (currency + namespace)
├── alice.mycurrency@     ← pays idregistrationfees
├── bob.mycurrency@       ← pays idregistrationfees
└── service.mycurrency@   ← pays idregistrationfees

For tokens with proofprotocol: 2, the identity holder can:

• Mint new tokens — increasing total supply
• Burn tokens — decreasing total supply

This is done through sendcurrency with special mint/burn operations. The identity holder acts as the central authority for supply management.

Important: Only the identity that matches the currency name can mint/burn. If mytoken@ is the currency, only the holder of the mytoken VerusID can mint or burn mytoken tokens.

This makes centralized tokens on Verus accountable — there's always a known identity behind the supply decisions, unlike anonymous smart contract deployments on other chains.

Plus the cost of a VerusID (~100 VRSC for a root ID on mainnet, 80 with referral (as low as ~20 net with a full referral chain)). Free IDs available via Valu; subIDs and PBaaS chain IDs can cost pennies or less.

Where the fees go:

• Token/Basket (200 VRSC): Goes to Verus miners and stakers
• PBaaS Chain (10,000 VRSC): 5,000 goes to Verus block producers, 5,000 goes to block producers of the newly launched chain

These fees serve as an anti-spam measure — launching a currency should be a deliberate act, not something done carelessly.

The options parameter is a bitfield. Combine flags by adding their values:

Common combinations:

• 32 (TOKEN) — Simple token
• 33 (FRACTIONAL + TOKEN) — Basket currency
• 40 (TOKEN + IDREFERRALS) — Token with ID referrals
• 41 (FRACTIONAL + TOKEN + IDREFERRALS) — Basket with referrals
• 264 (IS_PBAAS_CHAIN + IDREFERRALS) — PBaaS chain with referrals

1. No code required — Currency creation is a single CLI command, not a smart contract deployment.
2. Three tiers — Simple tokens for basic assets, baskets for DeFi, PBaaS chains for full blockchains.
3. Identity-linked — Every currency is tied to a VerusID, ensuring accountability.
4. Namespace bonus — Every currency automatically becomes a namespace for SubID registration.
5. Configurable supply — Choose between fixed supply (proofprotocol 1) or centrally managed (proofprotocol 2).

• definecurrency — Create a new currency
• getcurrency — Look up currency details
• listcurrencies — List all currencies
• sendcurrency — Send, convert, and trade currencies
• getidentity — Check the identity behind a currency

As of Verus v1.2.x.