Topic: [PRE-ANN] [IFCC] INTEREST FREE CREDIT COIN (Read 2374 times)

I like this coin,I will come back  some days later~ 

The loan system need a lot of prep work which needs investment, so it will take time before this can come out. But I thought that it is important to start putting this idea out there.

This coin will take time to come out since there are a lot of developments that need to take place before.

quite interesting coin

mkay

i am eager to see the  Loan system  let's keep on eyes

Below I present how borrowers and lenders both can profit from borrowing.
Since this new paradigm of independent coins brakes all  the basic rules created by the a monopolized momentary system of a national coin, I ask you to read it carefully and critic it accordingly.
When doing so pleas keep in mind the fact that any value is a product of a relationship between demand and supply and that a monopolized monetary system is excluding the creation of money and credit from the free market mechanism.
 
The IFCC coin-pool mechanism

Loans on the IFCC coin-pool are attached to an index, based on the  basic cost of living and are interest free.
Payment on debts are calculated according to that index on the due date for each payment. 
Thus when the value of the coin increases,  less coins pay the debts and the borrower pocket the difference.
When the value of the coin decreases  more coins are needed to pay the debts.
An increase of value will profit coin providers and borrowers who keep a portion of the coin for themselves. Decrease of value will created more demand for coins which will naturally push the coin value back up


LOAN TERMS OF USE

1. Borrowers will leave at least 50% of their loan as a collateral in the main pool. by doing so they become shareholders and investors in the main pool.

2. Borrowers will have to build a history to increase borrowing.
   


Description Of Example Case:

100 coins were put the pool when borrowing starts


Borrowing

1. Julie borrowed 40 coins and returned to the  pool 20 coins as collateral
2.  Linda borrowed 60 coins and returned 30 coins as collateral
3. Julie and  Linda now own the 50 coins that are in the pool but they can not use it themselves. they can land it out to someone else                                                                                                                                                                                       
4. Jonie borrowed the 50 coins and leave in the pool 25 coins
5. jack borrow 25 and leave 12.5

If they were all to  pay their debts at once there will have to be 175 coin in existence which means that by loaning back the collateral to another client they,as the user community, creating  a demand for 75 more coins which have to be mined in order to be paid back .The potential demand for more coins create a value for the existing coins. This value is the floor value that is  not dependent on any other market value.
 
Returning The Loans

Borrowers debts is calculated according to an index (to be determined which index to follow or create) the borrower have to return index value on the entire sum of money borrowed . their minimum weekly pay back is 10%

1, if the index stay the same Julie will have to pay 6 coins back, Linda 4, Jonie 5 and jack 2.5
total of 17.5 coins back to pool


1. If the coin value increased 50%, the borrowers need to return this week only half the amount of coins which is 5%, total to  8. 75 . the remaining 8.75 coins, they each pocket according to the borrowing sum they took,
By having to get (buy) only half the coins to meet payment obligations, The borrowers instantly lower the demand for the coin

2. if the coin value decreased 50%, they each need to return one and a half of the coins they took which comes to 15% of the sum of coins borrowed. total to 26.25 coins.
Having to get more coins means that they instantly increase the demand for the coin

3. In actual, the percentage of the total coins to be repaid fluctuate between 0% to 100%. theoretically speaking,  if coins value drop to 0 all standing balances are required back. if coin value increase 100%  no coin payment is required.  But since there always is a demand for coins to meet payment obligations the value will never reach 0. it can however reach above 100%.

4. If coin value increase more than 100% The borrowers potentially can withdrawal coins from their collateral accordingly. at 200% they pocket all their  remaining loan and owe nothing. 
But  since their collateral have been loaned out  they can  not  really redeem that part  thus  the maximum profit a user can make in any given moment  is the value of half of the remaining loaned sum which is always the money that iis in their hands (spent or kept) This will prevent the system from default. This condition will be written into the terms of the loans

5. Since the borrowed coins have been spent, the borrowers have to  buy new coins using their dollars in order to return them. and at this point they start to put  dollar value on the coins. (assuming that until that point this coin had very little value and was traded for surplus of commodity that had no other buyer).

Sounds interesting ... Will follow for future updates.

good luck 

sounds interesting

We shell see...

IFCC is being develop on the premise of a free independent-currencies market in which currency suppliers and credit providers will have to cater to a decentralized competitive free market of currencies.


The coins mechanism of distribution as loans through the IFCC platform is such that it can guarantee value for lenders based on future demand for the coins. Since value is a product of demand, and fluctuation in demand are a product of projected figures and speculation on future figures, the IFCC system is designed in such way that there is always a predetermined figure for the lowest possible demand of coin supply and Thus a floor for the coins value relative to the entire market.

IFCC vision is to map out and take the steps required to move the economy from “debts based” economy to  “added value” economy.
The philosophy behind the “added-value” economy is such that value is “loaded” into  anything including financial instrument such as currency, based on users demand, thus the users are the ones that should benefit from the value acquired by the power of their trust. The IFCC platform is designed to reword borrowers on the increased value of the borrowed coins.
 
The IFCC network long term vision is to use the network power to offer and replace fiat-based debts with the IFCC network coins that are loaned interest free,