DIP-177: Redefining the Base Unit of the United States Dollar (USD)
Abstract
This Dollar Improvement Proposal (DIP) suggests redefining how we commonly refer to the base unit of the United States Dollar (USD) for improved clarity and user experience. Currently, 1 USD equals 100 "cents." This proposal aims to make the "cent" the new primary unit, now simply called a "dollar," effectively removing decimal points from most daily transactions.
Crucially, there is absolutely NO change to the underlying monetary policy, the economic value, or the consensus mechanisms governing the USD. The total value of your money remains precisely the same.
Motivation
The current system, with its various coin names (penny, nickel, dime, quarter) and the use of decimals for amounts less than one USD (ex $0.75), can be confusing. This DIP seeks to simplify financial interactions by:
- Simplifying Comprehension: Making it easier to understand transaction amounts as whole numbers.
- Enhancing Accessibility: Making smaller amounts feel like complete units, rather than fractions of a larger USD value.
Specification
- New Base Unit: What we currently call a "cent" will now be referred to as "dollar."
- Deprecated Terms: Terms like "cent," "penny," "nickel," "dime," and "quarter" will be phased out for everyday value references.
- USD Code: The currency code "USD" will continue to represent the aggregated value of one hundred of these new "dollars." So, 1 USD will equal 100 "dollars"
Examples:
- An item that currently costs 0.01 USD would be displayed as "1 dollar."
- If something costs 0.75 USD, it would be shown as "75 dollars."
- A 5 USD would represent "500 dollars".
- A 25 USD would be "2,500 dollars."
Backward Compatibility
There is absolutely NO change in the current consensus, monetary policy, or the underlying value of the USD. This proposal is purely a semantic and display-level modification designed to enhance the user experience without altering the fundamental economic properties or purchasing power of the USD.