Ok so the main objective is to bolster the coin value and entice Merchants to do business with Exclusive coin.
Merchants need to cash out their costs and grab their profits to pay for overhead. This causes a Sell Off to get out of the Coin they are Accepting. It is like running to the bank frantically to make sure their profits are intact everyday so any swing in BitCoin won't affect them, good or bad actually.
If we can create a Derivative market that will generate the payback of the costs of the product and then burn the profits from the coin that are generated in that coin we could stabilize EXCL and boost it up the food chain to BTC levels.
A possible way to do this would be to create a special Merchant Wallet. The wallet has your inventory stocked with how much money you wish to leverage daily or weekly. This would be bought from the Derivative Market. The only way you can cash money out of the wallet is when you get a sale from a Normal Buyers Wallet.
Example... A merchant stocks their wallet with $1000 in BTC backed Derivatives. They have physical stock of $100,000 on hand at retail prices. Their costs for this stock is actually $60,000 so their gross profit is around $40,000 or 40% and 10,000 items in stock. The $1000 they buy in Derivatives to their Merchant Wallet will equal their raw cost for the exposure they want. If they make 2 sales for 2 products for $100 each they have $200 unlocked from the $1000 and $800 will remain locked. Since the Derivatives will cost them a certain amount of money to get back in, the Merchant can chose to relock the $200 or a portion of it and Stake the rest or take their costs out of the Derivative Market at that point to pay their expenses.
So lets say the Merchant Locks 40% of the $200 or $80 as their profit. The Merchant could then Cash Out the $120 or decide to start Staking this until ready to pay bills with. The percentages would be smaller for less time or confirmations. The longer the Staked amount stays Staked the higher the percentage is paid per block. This money can be released at anytime but once it is sold out to the Derivative it is Burned. So to extract your profit you must burn these coin. There could be a direct Derivative Wallet that burns them when transferred in.
So the longer this Derivative coin stays in the Merchant Wallet the less BTC will be drawn out, which was already paid in. And this Derivative market is growing the Profit of the holdings backed by valued assets. The market would never slam since people can always buy the value of the products at the least and the real money was spent to hold the costs of the sales. To whatever the degree was for the buy in. The more people selling or wanting in to the market the more demand for the Derivative and the early adopters will have the best sell out on the first waves. But this amount will always be perpetually more since Derivatives are burned coming out and there will always be a need for more products and whatever the market will bear will determine the fluctuations.
The system would have to be built so it could not be gamed by people just selling fake products but even then they have to buy in and also buy the coin to send to the wallet. So if the Value of the Coin is more Expensive than the Derivative then the Merchant couldn't fake any transactions since it would cost more to do so. Coins were initially just mined for the cost of electricity and time, so the market may take a while to level out to reach past the cost of the Derivatives.
This may take multiple BlockChain's tied to each other. May need to be very Intricate.
Ideally we just want the Merchants to have a great potential for making more profit than normal based on our demand for the products they allow us to buy with the coin. So if someone can see a better solution or rework of this idea please feel free to chime in. There may be stumbling blocks to these ideas so point them out if you see a way to game the system and then we will attempt to close any loopholes or flaws to make the idea work.
Since Early,
CryptoNick
This is interesting. I'm going to read this more in depth, I may PM you with some questions to clarify.
Yes feel free to PM me...
The more I think about it myself the more I feel like it will work. There are intricacies that will need to be setup to ensure no one can game it.
But to Earn you Burn the coin sent in, and the more the coin is used, the more that is burnt. This means the price must go up for Exclusive Coin so to speak, and if there is demand (which actually perpetuates itself) the Merchants have actually funded the success and also become the cornerstone to the coin's and their own success. By pegging the Profit to an external commodity based on the actual profits of the product involved in the sales, instant stabilization occurs. Since no one would be willing to pay more for the Merchant coin than what they should owe buying in and no one would erode their sales going out.
And this simultaneously creates less Exclusive coin in circulation. The markets weigh themselves against each other. The only stalling point is that buying in buys out somebody's profits, since you will always be able to get out since those are the costs to get in, you just need to be bought out. If the costs to get in become more expensive since there will only be so many Merchant Coin created per sale then the early adopters can keep holding their profits. They will eventually have to sell out since they need to pay their costs for the product at least. If their product has no costs then the costs to get in to the Merchant account have been paid up front so if they sell to themselves they just get to hold $1000 coin and stake it since that is what they bought in. They buy their own product to try to game the system but in doing so they boost the ability for other companies to get their costs out. In gaming the system they bolster the system and will only earn better payouts if they were making true profits. So as soon as they don't lock the $1000 back down they can not make any more sales. They will be staking to make interest on the money they already invested. This could be an Open Book to the market also. So stakers are shown as long or short. Then the market knows up front what may happen but there may always be people buying in to back more products and match their growth.
Actually I think I have it backwards, Staking should start while the merchant is waiting for a sale while the coin is locked, as soon as the sale is made the Merchant has unlocked their coin and must wait a certain amount of blocks to get this profit out, but can instantly Re-Stake and Re-Lock the coin or any portion of it. I first wrote this in a hurry. Does that sound right?
I am also thinking that a bonus is added somehow for the fact that EXCL is being burnt unless the staking creates enough of an interest to make the profit work. Since the only coin that will ever exist for this coin are technically Locked and only used by merchants there has to be real measures taken into account to protect the merchants from fraud and loss or any risks since they are sending real product for Mined Coins. Once a Merchant allows the coin to go on the market the buying transfer will be locked in once again perpetually. Maybe Staked Coin can not be sold but must now go back into the Merchant Wallet and Lock. This could be a part of the bonus of burning EXCL as it comes in. Since the only coin coming out would be equal to what was put in initially there should be a stabilization until the next round of sales occur. Still thinking about this...
Any variants along this theme would work too, since I am sure they would have merit and good reason to guard against a loophole I am not aware of yet.
It is a very rough draft since I essentially wrote this idea up as I posted.
