Re: Payments as a CSV

On 21 September 2012 21:36, David Nicol <davidnicol@gmail.com> wrote:

> On Thu, Sep 20, 2012 at 10:10 AM, Michiel de Jong <michiel@unhosted.org>
> wrote:
> > we have the same problem as earlier: a payment is the *opposite* of an
> IOU.
> >
> > Alice pays Bob 10 euros.
> > means she owes Bob -10 euros.
>
> The way tipjar classic did this (and relaunched tipjar will) is to
> treat an IOU as a nontransferrable transaction that is blocked pending
> funds availability.  Transactions have a state machine,
>
>     declaration -> validation -> completion
>
> and there's a configuration point on the receiver side concerning if
> you care to even be bothered with news of validated but not completed
> payments or not.
>
> In the New System, Alice can define a currency (UIFA) representing USD
> IOUs from Alice and give Bob ten of them from her reserve that she
> issued herself, so Bob can try to resell them if he likes; Alice might
> periodically place a standing instruction in the marketplace to
> purchase her IOUs for USD when her account has USD; also when she's
> got enough USD as the issuer of the UIFA she can forcibly convert all
> of them to USD.
>
> But she might never need to do that -- if Alice can maintain the
> funding of her standing marketplace order, the UIFA may be acceptable
> instead of USD, and may even be preferred when dealing directly with
> Alice or friends of Alice.
>
> I intend tipjar's essential contribution to the world peace through
> alternative currencies vision to be, a small scale personal currency
> -- like Alice's UIFA -- should have the same status as a Legal Tender
> Proxy (such as tipjar classic USD) in our any-to-any marketplace. So
> following Gresham's law, people might prefer to unload their
> UIFA-likes rather than spending their legal tender proxies when they
> can. Which the marketplace supports, by allowing Alice to declare an
> interest rate on her thing, which gets compounded continuously (well,
> every Unix timestamp second, which is close enough for all
> non-contrived purposes), someone who is into investing in unsecured
> debts could make marketplace offers of USDs for UIFAs. At some point,
> securities regulations start getting triggered; necessitating
> paperwork and making creation of the UIFA as a transferrable item good
> for a best-efforts repayment by Alice more costly.
>
> Or at least we have to be dilligent about blowing our lifeguard
> whistles at people who try to present IOU contracts as money-making
> opportunities.
>

David, I think this is an awesome idea.

If I've understood correctly each individual can issue and distribute
currency (up to a trust limit).

They can back this currency too, either fractionally or fully.

How are you going to describe the terms of each currency tho?  I suggest
giving the currency a web page.  I use DBPedia for vanilla currencies.

This kind of means anyone individual or group can start their own forms of
quantitative easing ... but in a democratic way! :)


>
> dln
>
>