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<i>We'll take a small portion of the investments we receive and put it toward paying operation/capital expenses. The rest of it goes toward boosting our USD res

<i>We'll take a small portion of the investments we receive and put it toward paying operation/capital expenses. The rest of it goes toward boosting our USD reserves. I won't get into specifics because I don't have the specifics worked out. Even if I did, they'd be boring.</i> OK, but this could get problematic. The costs of operation and infrastructure will not be trivial, especially as the project grows beyond the bootstrapping phase. Have you considered the option of a dedicated trust fund to maintain the project's infrastructure that is supported by a not-for-profit organization? As I understand it, the principle behind this currency is that it decays, and thus people will prefer to spend it first, otherwise it will expire and convert into USD at the account's reserve rate. So say I have $100GD at an 80% reserve rate, when it expires I will then have $80 USD. But, I may also have a basic income of GD trickling into my account and I can buy GD with USD at the pegged 1 to 1 ratio, or buy FGD at the speculative market rate.

Suncho 11y ago
The costs of operation and infrastructure will not be trivial, especially as the project grows beyond the bootstrapping phase. Hmm. These costs would be trivial compared to the total amount of USD we have in our reserves and the total amount of GD in circulation. I'd like the infrastructure to be as distributed as possible. As the central authority, we'd only be paying to operate the small part of the infrastructure at the top of the heirarchy. Have you considered the option of a dedicated trust fund to maintain the project's infrastructure that is supported by a not-for-profit organization? Interesting idea. I hadn't considered that, no. What would it look like? As I understand it, the principle behind this currency is that it decays, and thus people will prefer to spend it first, otherwise it will expire and convert into USD at the account's reserve rate. That's not quite right. The currency does not decay. In normal times, 100% of GD converts to USD. The reserve rate only comes into play when our total USD reserves fall to our required reserve level. When that happens, we have Disruption (see other comments), during which GD does convert only at the reserve rate. But the portion that doesn't convert to USD gets rolled over (its lifetime is reset) and remains in your account. We never destroy GD without converting it into the exact same amount of USD. When given the choice, people spend GD first, not because it decays (it doesn't), but because Gresham Dollar is the inferior currency: 1. USD is more widely accepted and therefore versatile. 2. USD is backed by the full faith and credit of the U.S. government. 3. Gresham Dollar is this new thing that people don't exactly trust. I guess what it boils down to is this: Would you rather spend your real USD, or something that will only turn into USD after 30 days? If a merchant happens to be accepting the thing that isn't even USD yet, you'd spend that. But, I may also have a basic income of GD trickling into my account and I can buy GD with USD at the pegged 1 to 1 ratio, or buy FGD at the speculative market rate. Yes.
- gruvious 11y ago
  Oh OK, this clears it up for me, thank you.

Suncho 11y ago

The costs of operation and infrastructure will not be trivial, especially as the project grows beyond the bootstrapping phase. Hmm. These costs would be trivial compared to the total amount of USD we have in our reserves and the total amount of GD in circulation. I'd like the infrastructure to be as distributed as possible. As the central authority, we'd only be paying to operate the small part of the infrastructure at the top of the heirarchy. Have you considered the option of a dedicated trust fund to maintain the project's infrastructure that is supported by a not-for-profit organization? Interesting idea. I hadn't considered that, no. What would it look like? As I understand it, the principle behind this currency is that it decays, and thus people will prefer to spend it first, otherwise it will expire and convert into USD at the account's reserve rate. That's not quite right. The currency does not decay. In normal times, 100% of GD converts to USD. The reserve rate only comes into play when our total USD reserves fall to our required reserve level. When that happens, we have Disruption (see other comments), during which GD does convert only at the reserve rate. But the portion that doesn't convert to USD gets rolled over (its lifetime is reset) and remains in your account. We never destroy GD without converting it into the exact same amount of USD. When given the choice, people spend GD first, not because it decays (it doesn't), but because Gresham Dollar is the inferior currency: 1. USD is more widely accepted and therefore versatile. 2. USD is backed by the full faith and credit of the U.S. government. 3. Gresham Dollar is this new thing that people don't exactly trust. I guess what it boils down to is this: Would you rather spend your real USD, or something that will only turn into USD after 30 days? If a merchant happens to be accepting the thing that isn't even USD yet, you'd spend that. But, I may also have a basic income of GD trickling into my account and I can buy GD with USD at the pegged 1 to 1 ratio, or buy FGD at the speculative market rate. Yes.

gruvious 11y ago
Oh OK, this clears it up for me, thank you.