Let’s do a thought experiment as I would like to run a scenario past you and see if it makes sense:
Say I owned a laundromat and users need to give me $1 fiat to get a token. I put the $1 fiat in the cash drawer.
Each token enables either 1 wash transaction or 1 dry transaction.
The client can return any unused tokens for conversion back to $1 fiat each at any time
Tokens that are used are simply put back in the token holder by me and recycled for the next client
Our profit is the $ fiat received for the tokens less the value of any outstanding tokens that are in circulation (and hence could be returned for a refund)
If for some reason, we increase the cost of tokens to say $1.50 we run the risk of those in circulation being returned for a profit but these can then be recycled and resold for a $1.50 and we are back to square (unless we can’t sell any at that price).
If for some reason, we reduced the cost of tokens to say $0.50 the client runs the risk of making a loss on returning his/her tokens.
The moral of the story is that:
Transaction fees received in BTC less those unspent in BKC (converted back to BTC at the current BTC rate) can be assumed to be B&C’s revenue.
Transaction fees received in NBT less those unspent in BKC (converted back to NBT at the current NBT rate) can be assumed to be B&C revenue.
B&C revenue stream is in BTC and or NBT not BKC. BKC are just tokens.
If an accounting entry were to be made, then any transaction fees spent/used up by the client in BKC would be converted (in an accounting entry only) to BTC at the time they were used at the prevailing BTC/BKC or NBT rate.
The BTC equivalent spent would then move from being a BTC liability to BTC income while the NBT equivalent spent would then move from being a NBT liability to NBT income.
Any difference in the BKC or NBT rate at the time of the transaction vs when the client deposited the fees would be an exchange gain or loss to B&C (just like our gain or loss from the price change in laundry tokens).
So there is no need for custodians to convert BKC to BTC or NBT. The BKC can just be parked until required by another customer.
Of course any surplus NBT (deposited less spent) would still need to be converted to BTC for dividend distribution but this would be achieved as per existing liquidity operations.
So rationalizing it the only reason that BKC are created is to effectively hedge any exchange risk on the revenue stream. With an active park and recycle mechanism in place to use BKC as a Hayek currency would require a very large pool of fees to be paid in advance and investors that believe them to be worth close to $1.
Does this make sense or am I being totally crazy here?