Summary: This proposal has been created to establish a means for FIAT customers to be able use the BOB Escrow and Blockchain system via www.BobsRepair.com without experiencing market fluctuations of the BOB Token Price by establishing a BOB Token Community Lending Pool and allowing FIAT customers to borrow the equivalent value of BOB tokens from other members of the BOB Network through this open-source community-driven lending pool.
The problem: In order to use the BOB Network Escrow and Blockchain Service for trusted home repairs and immutable reviews a customer is required to own and allocate BOB Tokens to every segment of this home repair/new construction job. However, since BOB Tokens are owned by the network, a collective group of entities worldwide, and are freely transferable, the price of these tokens has the potential to vary. A customer and a contractor may not want to convert their FIAT into BOB Tokens through the course of time it takes to complete a job due to the potential for these market fluctuations and their effect on the amount of FIAT that the contractor would receive after finishing the job.
Solution: In order to provide FIAT customers BOB Tokens and decrease price volatility risk while still keeping the FIAT customer experience simple, the BOB Token Community Lending Pool is proposed.
The BOB Token Community Lending Pool is an open-source smart contract that will allow the BOB Community to send their BOB Tokens to it in order to lend their tokens to FIAT customers at the time of their payment. For example, if a customer is quoted $400 for an installation by a BOB Network Contractor, he/she can pay $400 using their credit card.
At the same time the customer agrees to borrow BOB Tokens from the BOB Token Community Lending Pool at a small cost, for example, $20 USD (the exact percentages and fee allocation are in the process of being finalized).
These funds, $400, are held by Bob's Repair Inc., or a Bob's Repair authorized payment processor or an escrow company, (depending on the jurisdiction) while the job is being completed, minus the example $20 Community Lending Fee. The $20 Community Lending fee is used to make an automatic BOB Token purchase off the market by the customer and is distributed to the BOB Token Community Lending Pool evenly.
Effect: As more FIAT transactions occur on the BOB Network more customers will require BOB Network Community members to lend them BOB Tokens to execute their home repair/new construction transactions.
The more FIAT transactions there are on the BOB Network the more BOB tokens will be required by these FIAT customers and the higher the return for community members staking their tokens will be. As FIAT transaction volumes grow more people will be incentivized to purchase tokens off of the market and stake them in the lending pool to take advantage of the interest earned from lending these tokens to FIAT customers.
Important disclaimer: Tokenomics related proposals made by Bob's Repair, including the announcement regarding the BOB Token Community Lending Pool, are subject to evolve and change at any time in any capacity. Development of various Bob's Repair tokenomics models are still in progress.
