Commit f4f262d1 authored by TonyFord's avatar TonyFord
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add proposal FIP-0006

parent 75cd317d
FIP: 0006
Title: FairCoin recovery by Stargate
Author: Sebastian Gampe
Type: Distribution
Module: Markets
Status: Active
Created: 2020-08-26
Updated: 2020-08-26
Scheduled: 2020-10-26
Requires: p2p marketplace, stargate, bankofthecommons API, metrics
Files: [fip-0006-1.png]
## Abstract
Use FairCoin to pay daily ( bank transfer ) bills and solve the hen and egg problem. ( FairCoin will not accepted because there is no use case and because there is no acceptance no use cases will created )
The primary goal of this FIP is to recover FairCoin from the beginning and less to find a long-term system to find the best exchange price.
## Copyright
This FIP is licensed under the [GNU General Public License, version 3](
## Motivation
FairCoin stucks on bottom. I can't see no growth but what I see is a small number of people that are motivated to try another strategy to recover FairCoin and create use cases for FairCoin again.
## Rationale
Different projects were started in the last year but nothing changed the situation of FairCoin.
The reason seems not to be the price because also lower prices did not create some more interest to buy FairCoin. The once that could reached is that FairCoin will not sold to the lower prices anymore and the high amounts of sellings could be stopped.
To create use cases could be the important point to end the situation and make FairCoin lively anymore.
## Specification
Recover the FairCoin price from the beginning. Reduce the price the lower the better to keep the sellings stopped and make it easier to create a positive progress.
At the beginning start only with members that did never use FairCoin to close fiat lacks.
Start to use FairCoin to pay daily bills by bank transfer indirectly. Pay in FairCoin and SEPA bank transfer will sent to registered merchants. This should solve the hen and egg problem and makes it much more attractive to offer goods for FairCoin when it is possible to use the FairCoin to pay bills by SEPA bank transfer.
The idea is to deposit fiat money in BotC, get FairCoin and pay with FairCoin regulary bank transfer bills.
The fiat value of deposit and the payment volume is the baseground of price calculation in relation to a specific FairCoin amount set as a (initial) reference. The higher this amount the lower the starting point but the easier to recover FairCoin the harder is it to pump or dump the price.
price = ( ( deposit + payment volume ) / 2 ) / initialFairCoinReferenceAmount
This calculation is less attractive to deposit FairCoin without to use it but much more attractive to deposit and use FairCoin.
In the case that FairCoin will only stored but not used then 1/2 of the fiat deposit goes to the BotC account and only the other 1/2 can be used for fiat payments.
Only when the deposit is balanced with the payment volume then all the FairCoin can be used for fiat payments.
Alternatively the FairCoin can be used on a p2p market to trade goods or services.
Every member of Stargate creates a FairCoin address. This address will used for deposit ( fiat to FairCoin ) and payments ( FairCoin to fiat ). An modified chain explorer will show all deposits and payments and can be proved by everybody.
To make the progress visible and all flows open and transparent ( pseudonymous )
## Backwards Compatibility
It is not compatible with other price systems because other prices will be a lot of higher and to pay with FairCoin for almost all FairCoin owners to a more or less total loss.
To prevent it the Stargate project will initiated with a higher amount of donated FairCoin.
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