Yeah, its in the OP. Basically, part of the interest charged to the borrower gets put in a Decentralized Autonomous Reserve, which is an algorithm controlled wallet that is distributed amongst all members.
So that can be called fees in a way , what if there won't be so many scams and what will happen to that btc in the so called Decentralized Autonomous Reserve.
Also , this gives a win-win situation to scammers, they just get away like that.
Anyways , i will look forward to this , it has some really nice ideas though it sounds pretty sketchy because of scammers but everything works out somehow and am sure this will too
if you read the OP, its all there. the DAR accumulates fees so that all loans out on the network are insured. Anything above this limit is distributed to those participating in the network, as a dividend. If you have currency available to loan, then you get a dividend.
Scammers - the current design of the network prevents collusion (multiple parties working together to try and screw the system), but it won't prevent an individual from scamming the system.
Like any traditional banking system, the fundamental component of this is trust - trust that you'll pay back. And this trust is all in the loan application process... you publish something on the block chain, people respond - they bid into your loan or not.
Yes i read the OP clearly and i do understand this is a great system with very less flaws but nothing can be perfect and this can be Se'ed by scammers. Though i would really like to see it implemented .
Cool! Thanks for reading the whole thing !!!
Need to work on condensing it.