Its pretty much what I expected. BK somewhere 100 pages or so ago wrote that he wanted to link the interest rate to the economy. Economy in this case had to be the transactions.

This system makes more sense than the other variable interest rate systems. Those were mainly created to get people to stake their coins. While that is important, they were not motivated by any economic intention. Didnt really work out well anyway as we could see with vrc as the benefit from actively trading is much bigger than 5% interest rate per year (at least everyone of us likes to think that).

The real question will be if BK can succeed to bring in investors from outside cryptoworld, which wont be easy. POS+NSF will probably be one of the selling points.

We could start a discussion about the economic theory behind it, but it is 2am here. Overall this is a far better whitepaper than what we mostly get to see in cryptoworld.