Bank of Xsyon --- Providing Sound Money, Currency Swaps + Loan Services
Work in progress, just had to get it posted before it got deleted ;)
Just so there is no conflict of interest, this bank is ran by Audacius.
For my services that will require a GREAT GREAT DEAL of my TIME, I will be certainly making a profit.
The goal is to create a meaningful currency system that players actually have confidence in using.
Normally this role is taken by an NPC, however in Xsyon we have no NPCs, and we never will.
It's entirely player driven, and that's why we need to come together and make this work.
At the Bank of Xsyon, we offer "Greenbacks" as a primary Sound Money Solution.
What is a Greenback or $GB?
1) A "Greenback" is different from typical currency because you can always exchange them for real value at the Bank of Xsyon.
2) A "Greenback" can be exchanged for nails at the following exchange rate:
You give BoX 10 nails (any QL and type), we give you $1 Greenback
You give BoX $1 Greenback, we give you 10 nails (any QL).
3) This may be a formidable solution for some traders, if other traders may not be accepting of your dollars for items of real value.
How do I know my dollars are real Greenback?
1) Greenbacks are dollars that have the "Found by Greenback" tag below them, certifying they are issued by Bank of Xsyon.
2) In order for this system to work, we need people to accept the $GB in regular trade, for most types of items. Why? Because, this will allow the currency to begin to circulate.
If any players wish to get the process started, please post here or contact Audacius.
I will make you a "primary greenback dealer", which means you will also be trusted to provide exchanges.
And here's the really cool part. You can choose to only back your GB$ with say, 11 nails per 1 $GB. Now, it is highly likely that players will exchange with the primary dealers instead of directly with the bank of Xsyon, because their $GB is worth more if they exchange it with. They get 11 nails instead of 10.
This will bring the tribe of the primary dealers more trade (cheaper), but at a cost of 1 extra nail per $1 GB, or whatever price they choose.
But if instead a primary dealer chooses to charge only 9 nails per 1 $GB, then it is likely that this primary dealer will not see much in the way of trade coming his way. However, in certain situations, when small amounts are needed to exchanged, or in very remote and desolate areas of the world, I can see how players wouldn't mind sacrificing less nails for the convenience of not having to travel far to make an exchange.
4) The more players who have faith in the $GB, the easier it will be for it to be accepted globally as "good as nails", somewhat like the US dollar in real life, used to be considered "as good as gold", until 1971 when foreign central banks could no longer make gold withdrawals using US dollars
Exchange Rates on Non-Greenback Currency
We also provide currency exchange for non greenbacks.
This means any other currency found by other players in the world other than "Greenback"
Note: These rates may change depending on supply/demand.
Our ask rates: the price we pay for your currency
Dollar/Quarter = 1.1 - it will cost you 1.1 quarters to buy 1 dollar.
Dollar/Penny = 1.1 - it will cost you 1.1 pennies to buy 1 dollar.
Dollar/Beer Tab = 1.1 - it will cost you 1.1 beer tabs to buy 1 dollar.
Penny/Beer Tab = 1.1- this means it costs you 1.1 beer tabs to buy 1 penny
Penny/Quarter = 1.1 - this means it costs you 1.1 quarter to buy 1 penny
Quarter/Beer Tab = 1.1 this means it will cost you 1.1 beer tabs to buy 1 quarter
Our bid rates: the price we sell currency
Dollar/Quarter = 1.0 - it will cost us 1 quarter to buy 1 dollar
Dollar/Penny = 1.0 it will cost us 1 penny to buy 1 dollar
Dollar/Beer Tab = 1.0 it will cost us 1 beer tab to buy 1 dollar
Penny/Beer Tab = 1.0 - it will cost us 1 beer tab to buy 1 penny
Penny/Quarter = 1.0 - it will cost us 1 quarter to buy 1 penny.
Quarter/Beer Tab = 1.0 - it will cost us 1 beer tab to buy 1 quarter.
Greenback and Non-greenback Currency Loans
Note: these loan rates are subject to change. rate changes will not effect outstanding loans.
Greenback loan payback durations and interest rates
on loans of $10 GB or more, but less than $50 GB
$10 Greenback for payback duration of 1 week real time = 10%, this means $11 GB or 110 nails
$10 Greenback for payback duration of 1 month real time = 30%, this means $13 GB or 130 nails
$10 Greenback for payback duration of 3 months real time = 100%, this means $20 GB or 200 nails
Greenback loan payback durations and interest rates
on loans of $50 GB or more, but less than $250 GB
Note: loans of this size will only be granted to those with the acceptable credit rating, to earn credit you should consider smaller loans first, and pay the interest back on time, or for even higher credit, pay back ahead of schedule.
$50 Greenback for duration of of 1 week real time = 15% --$57 GB or 570 nails on a $50 GB loan
$50 Greenback for duration of 1 month real time = 50% -- $75 GB or 750 nails on a $50 GB loan
$50 Greenback for duration of 3 months real time = 200% -- $150 GB or 1500 nails on a $50 GB loan
Need to finish the non green back loans
Working on the credit ratings system next and I will also post the credit ratings of depositors for all to see.
I also may include a more detailed exchange system for nails that are in higher demand (type specific and QL)
