Hi FreeTrade,
First off, thanks for all the innovation you have brought to the crypto community. I have mined and profited from Memory coin and Protoshares, (did not get a chance to play with LottoShares.)
I have one question and a comment/suggestion (below).
Will this be a PoW or PoS (or hybrid)? you state that it will be merge mineable but earning interest on funds sounds like a PoS.
This will allow users to lock up funds for a specified amount of time, to earn a specified amount of interest. The interest rates provided may be very high, especially in the early stages of the coin.
This will encourage and reward HODLERS. It will also constrain supply - interest earning coins cannot be moved.
Interest will be entirely handled in the blockchain and protocol. There won't be any counterparty.
I am not trying to name drop, but check out RateCoin (XRA) project (link in my signature), it also does what you have described, you can lock selected inputs in order to receive interest based on duration of locked block.
With that said, I will follow this project and assist where I can be of help.
Good luck.