The new system would operate under the USD, since it’s failing anyway, under a digital construct based on individual basis. The credit system would be backed by things of pre-existing value, by X amount of Degree. This way, value is established by the length of the digital trail from transaction to transaction.
In lamer terms, lets pretend I want to sell you a guitar. This system has been around for a bit, and you have 500 credits just sitting around. Some of these are backed; Meaning, lets say, 400 of those credits you earned from various other sources; a value can be traced back by a series of transactions so its established that those 400 credits are legitimately worth 400 credits. Several sources backed that.
Okay, you’re a musician, you make music online and sell it to people online for credits. But these are kids who aren’t part of the system yet, but they’re thinking it’s a good idea, so they buy your album for 10 credits, out of no where. These credits aren’t really backed, but you take them anyway because hey, they’ll just sit at the back of the bank and maybe some day they’ll mature, and it’s better than totally giving away my music for free.
I want to sell my guitar for 415 credits, but I know that I’ll be getting 15 credits from you that aren’t backed. Because you’re my good friend and I know you busted your old guitar last week while we were jamming out, I’ll sell you my guitar for 415 credits and call it even. But if I know half of those are going to be empty credits, I might not want to make the deal with you. Because, then my ratio of backed to unbacked credits will go up in favor of unbacked, thereby lowering my over all “rating”.
In this sense, you are required to make an informed decision of your investments at the exact moment of purchase depending on the status of another person. This would operate partially under a digital medium that profiles the person based on their backed vs. empty points, their occupation, status, etc, to determine if their unbacked points will mature in time to benefit you.
So, if I decide to take all those unbacked points anyway, knowing you’re a pretty good musician and you’re starting to get pretty well recognized by the art community, I’m thinking, what the heck, maybe they’ll be good soon. Turns out, six months later, you sold a bunch of albums and those unbacked points then get tied to the kid who bought the music with unbacked points that was given to you, and then to me for the guitar. We could trace back to where the kid got his points backed, but that’s the simple version.
Make sense? Should I go on?
