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Peer To Peer Credit Vouching Mechanism

Posted: Sun Aug 11, 2013 12:13 pm
by PedroPalhoto

I'm searching to see if the feature for a P2P credit vouching mechanism is already implemented or at least thought out as a desirable feature. Does Cyclos provide something similar?

The notion of this concept is that each member in an alternative currency system is given an initial number of tokens, say 5000 tokens. After spending the globally defined initial credit, 500 tokens for instance, then the member can only spend below the 4500 if she receives vouching from other members participating in the currency system. If the member disappears all of a sudden without giving back the initial 5000 tokens he was given, then it is up to the peers who vouched for the member that pay the remaining value to achieve the 4500 base value. The remaining 500 global value is a community given loss.

The credit by peers can be made indefinitely or time constraint, depending on trust level. The purpose is not to start an account at zero and go into a negative balance. This also incentivizes neighbors to maintain communication with each other to find out if anyone needs help balancing their accounts/business processes. This is not an infinite growth system, the number of tokens increases and reduces according to the number of members and community desired granularity.

So has anyone seen such a feature, or know how to achieve this in Cyclos?

Thank you.

Re: Peer To Peer Credit Vouching Mechanism

Posted: Sun Aug 11, 2013 2:28 pm
by PedroPalhoto
By the way, any account that goes beyond the base 5000 credits, gets the additional tokens tagged for decay. Decay rate can be voted by the members (mean value) and if the token decays, it goes into the longest owing account, as a form of not incentivizing hoarding and balancing out who may have had some bad financial luck.