I am proposing a scheme that could increase the value of the Nu network, decentralize and deepen the liquidity and stabilize the peg.
In this scenario the shareholders vote for custodians that give NBT loans to local businesses with 0% interest rate (in the future could be in different Nu units).
Those custodians could be individuals or companies that curate a local barter-like network of businesses, freelancers, etc that exchange services and products between them using NBT. The businesses can find other businesses that accept the Nu tokens from a simple yellow pages web site.
Any business is eligible for participation but the size of the loan depends on their past revenue and the risk that the shareholders are willing to take in case of the business defaults. The custodian can charge a fee to register the local business.
The loan has to be made as a legally binding contract between the business and the custodian (for their legal exposure the custodian can be compensated).
After a specified duration the business must return the exact borrowed amount or buy the missing part from the market for fiat/BTC/PPC. The procedure could be a simple send to an address via a qr-code that is printed on the contract, and it is automatically concluded when the funds are sent. More elaborate techniques could be employed, like breaking the loan in trimester payments and require of a partial loan repayment before unlocking the successive amounts. Most of those things could be automated without human intervention via blockchain interactions.
To minimize risk, the shareholders can also assign a “committee” that can check things like due diligence, if the local network is working, etc. This committee can even co-control funds with the custodians via multisig. Generally the shareholders should assume a certain % of funds being lost due to defaulting, fraud, etc.
With a local network of businesses accepting Nu tokens we can observe the following:
- A business owner can discover local businesses that provide services or products generally cheaper. The local economy grows.
- Incentive to spend Nu tokens vs fiat because of the general lower fees and that the not spent fiat in a bank accounts earns interest.
- A natural fiat <-> Nu token local market emerges, i.e. a business short on Nu tokens must re-buy them at the local market.
- Few businesses will cash out via online exchanges because of the exchange fees and that you usually have to pass from Bitcoin. It could even provide a buy pressure.
- Usage by consumers in the form of salaries, conversion of BTC/PPC to the Nu token to buy local products or services.
The Nu network can grow faster together with the local communities scattered around the world vs issuing funds to custodians that just trade them on exchanges to support the peg (also useful).
Distribution of Nu tokens to businesses to be used in local trade between them, under the premise that those companies would have a legal obligation to repay either the tokens or the equivalent face value in fiat/BTC/PPC. The end goal is the growth of the local economy and the proliferation of Nu and the blockchain technologies.
A formal motion could be created after some discussion/criticism.