Proposal: To build the fairsavers network (or network of communities)

  • 01/06/2015 às 22:14 #7488
    Profile photo of Enric DuranEnric Duran
    Administrador

    Proposal: To build the Fair Savers network

    Hello, this proposal is very simple but very important to improve the faircoin stability, which depends, amongst other factors, on our hability to create an stable buying activity, that is not going to convert in fast sells or spent fastly.

    Also is very important for the stability of faircoin to have stable and periodic purchases, which are better for the market that large purchases at once.

    So, the proposal consist in build a broad network of peoples (or community of peoples) that converts periodically an amount of their ‘national’ currency (like euros) in faircoin as a savings for the future.

    We are going to facilitate this action at the technical level, by activating an easy way to automatize this process with the help of fairbill, who is building the tools of recurrent payments (with direct debit or credit card) that will make possible for everyone to schedule weekly or monthly payments.

    At the communicative level, I imagine a network of active users that becames involved in that plan, and suggest to their friends, collegues and contacts to do the same, helping to solve doubts and questions to the people that becames interested.

    For example, people from a local node, could suggest that involvement to their members and contacts, creating local communities that becames involved in the network.

    Clearly, the amount and the periodicity would be free, adapted to the situation of every user. Also would be free to choose to hold the saving for yourself or choose to use the fairsaving service from faircoop

    It would be in fact an alternative to the private pension for retirement, that usually is in hands of the banks with very hard conditions…. An alternative that can not be frozen by your bank or your government…

    As how the money markets works, as more people gets involved in the fair savers movement, more possibilities of succes that creates a profit for everybody and for changing the world for a better.

    More stability for the faircoin market, and easier to spend the saving when do you need that…

    What do you think?

    Anyone interested in help to build that project ?

  • 02/06/2015 às 10:39 #7490
    Profile photo of SuperMarioSuperMario
    Participante

    I also think it’s important to have frequently in and outflows on a smaller scale spread to a longer time period to avoid huge pumps and dumps.

    And in my opinion the last rise was kind a pump (also if dumped from people mainly not involved in FairCoop). Even if we are all cooperating and see the use of Faircoin people are more willing to invest when we see price goes up. To calm down everybody a bit and avoid unhealthy huge price increases by big orders my proposal would be connected with the change of purchase rules in getfaircoin.

    An example:

    Let’s say if somebody wants to invest a certain amount of Euros (big amount or small), the receipt of Faircoins is spread into 4 parts (25%) within 2 month.

    (Here I would make a restriction for big investors, saying that investments more than 4000€ would be split into more than 4 Parts. If somebody invests 10.000€ it would be split into 10 parts which means he/she receives Faircoins every 2  weeks during the next 5 month.)

    -This means every 2 weeks he/she receives Faircoins at the current price in getfaircoin (maybe average of the time period to make it fairer). So if price is falling during a 2 weeks period the person gets more Faircoins than the period before.

     

    Like with shares of a cooperative it would be more forward-looking for the price if a person would need to state that he claims its Faircoins back in advance from fairsaving. Here it could be also possible to split the out-payment into 4 parts or to say for the first Faircoin claim can be maximum the value of initial Euro investment. The latter option could make sure that investors definitely get the initially value back (in case of constant price increase).

    With this change we could prevent or absorb huge buys at once leaded by greed or euphoria and big dumps by fear of falling prices.

    But: This still cannot prevent people in bittrex to buy and sell bigger amounts which could be a problem. The more I think about it the more I prefer getting off exchange like bittrex…maybe somebody have a solution for that?

    Another proposal for stability: public visible account of FairCoop Euro-reserves to cash-out for FairSaving users:

    Advantage:

    • people can cash-out if there are enough reserves in the account without hurting the FairCoop financially
    • FairCoop can put more Euros into the account if more people are claiming Faircoins back from FairSaving instead of buying in from bittrex and pushing the price artificially high
    • Incentive for using the fairsaving service
    • Transparency
  • 02/06/2015 às 16:05 #7492
    Profile photo of Enric DuranEnric Duran
    Administrador

    Well, @supermario  This is a thread for this proposal of building this fairsavers network, not for discussing the problems wih trading in a more broad sense.

    So i could suggest to use the thread “trading cooperation” for discussion about bittrex and general market stability.   /groups/faircoop-community/faircoin/forum/topic/trading-cooperation/

    More than that I think that we dont cant force users that wants a big amount to distribute the bought in varios months, but we can invite them and give the options… More options, better possibilities to have more people interested and satisfied. For this reason this proposal is about give options to people that could be interested in a periodic contribution for complement their savings.

    For this a new option that we are already giving to people that could invest 10000 € or so, is Coopshares. That lets you to invest in one time, but using half of your investment for enrich the liquidity fund.

    Otherwise I dont see a specific euro reserves for fairsaving users, because would be more interesting to priorize that the people could use their faircoin for spend them when they need. But again the liquidity fund is the tool of “general reserves for all the faircoop ecosystem” that we are building.

  • 02/06/2015 às 16:13 #7493
    Profile photo of Enric DuranEnric Duran
    Administrador

    For people making regular payments, the idea of spread the price as the middle of the price for all the period sounds fair enought, but at the same time, adds perhaps too much complexity for the current stage. Perhaps could be considered in the future when we have a professional structure, available enough to manage this kind of options.

  • 03/06/2015 às 09:00 #7501
    Profile photo of GuyGuy
    Administrador

    @efedin – my problem with the FairSaving platform is that you have to trust a 3rd party to look after your money, and this also creates a centralised point of weakness for hackers to attack. See how many Bitcoin exchanges have been hacked, for example. Even if there was no chance of this happening with Fairsaving, I’m sure a lot of people would think like I do and prefer to keep their Faircoins in their own wallet on their own computer, just to be safe.

    I do understand the need for it as a tool that some people prefer to use and that it will be useful in the FC ecosystem, but these are just my personal thoughts about it.

  • 03/06/2015 às 09:47 #7505
    Profile photo of Enric DuranEnric Duran
    Administrador

    Well  @guyjames, A service managed manually that is not an exchange is very more secure than one exchange. As you said there are a need for this and i useful still not being perfect.

    Anyway this fairsavers network is not linked to fairsaving as a service, so the proposal here is to build a network of saving together amongst people that have faircoin in their own wallet and people that use fairsaving or wathever, so I would be glad to discuss about the proposal in this thread

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