Quote (russian @ Oct 15 2015 06:22pm)
Interesting idea.
One of the three main goals of the currency is to be distributed and free of single points of failure. Who will be in charge of actually buying and installing the physical hardware, and also handling the bank account holding the fiat reserve and dispensing cash outs? It seems that the currency can't function without a very specific person - you, the organizer. Having an investment that takes 17 years to start producing profit go south because some guy somewhere got hit by a bus is a pretty big risk.
How do unexpected expenses (say, hail damage) get handled? It seems that people own specific physical panels. Are the deed owners solely responsible for any damage to their panel, or is the burden shared by all?
Your fiat reserve and the solracoin pool are in different units ($ vs kWh). With a fluctuating cost of electricity, how do you maintain that ratio? Say that electricity cost doubles (maybe oil goes back up to 100 bucks or something). You now have only 5% of the pool in cash. Will you charge all new solracoins more than 10% to make up the difference? Which portion will that extra money come out of?
Do deed owners legally own the land and hardware they paid for? Let's say 20 years from now we get fusion reactors going and energy prices plummet to near-zero. Can deed owners recover money by selling the land/equipment?
Great questions!
One of the three main goals of the currency is to be distributed and free of single points of failure. Who will be in charge of actually buying and installing the physical hardware, and also handling the bank account holding the fiat reserve and dispensing cash outs? It seems that the currency can't function without a very specific person - you, the organizer. Having an investment that takes 17 years to start producing profit go south because some guy somewhere got hit by a bus is a pretty big risk.
Yes there will need to be some aspects of centralization and will need to be handled by a person/group of people (for now). There is a concept for a corporation called a DAC (Decentralized Autonomous Corporation) where the variables of a program are algorithmically programmed and the company functions automatically as a trust/AI. This is the long term goal. Yes you are correct it does take a while to break even in terms of fiat profits. But some people invest in bonds which have even lower/longer rates of return. The incentive here is not purely in terms of fiat profit (although there is some over the long term) -- just as many people are invested/involved with bitcoin for other than monetary purposes.How do unexpected expenses (say, hail damage) get handled? It seems that people own specific physical panels. Are the deed owners solely responsible for any damage to their panel, or is the burden shared by all?
Say a 1 MW array ( a few acres of panels) is funded those that are invested in that array own x/1 MW of that particular array so damage/additional incurred costs are shared among the entire group invested in that array. (say 20 panels of 1000 break the cost of replacement is split over the entire group).Your fiat reserve and the solracoin pool are in different units ($ vs kWh). With a fluctuating cost of electricity, how do you maintain that ratio? Say that electricity cost doubles (maybe oil goes back up to 100 bucks or something). You now have only 5% of the pool in cash. Will you charge all new solracoins more than 10% to make up the difference? Which portion will that extra money come out of?
The reserve account is 10% of the aggregated average of the cost of all kWh sold; so if price of electricity goes up future contracted arrays will sell at a higher pricepoint and thus the overall average will be pulled up proportionally. Usually electricity from solar arrays is contracted/sold at a fixed rate over their lifespans so only new arrays would be effected by shifting electricity prices.
Again the reserve account is the 10% of the aggregate average. (IE: 20 total MW ---- 10 MW selling at 10 cents/kWh and 10 MW selling at 20 cents/kWh the aggregate average would be 15 cents/kWh (or 1.5 cents per kWh deposed when averaged). The amount backing the SolraCoin is 10% the aggregate average which is certain to exist as it is deposited as electricity is produced/sold.
Do deed owners legally own the land and hardware they paid for? Let's say 20 years from now we get fusion reactors going and energy prices plummet to near-zero. Can deed owners recover money by selling the land/equipment?
Still determining this; I'd want to say yes in the sense that we cannot take/move the panels once deployed and no in the sense that they can't decide to do the same. They can sell their 'share' at any time but cannot remove/take the panels. In short they own the profits from their proportional equity in deeds, and can sell/trade their deed at any time on a free market exchange, but they do not have the right to tamper with/remove the panels. Land costs are included in a 'block' cost. I suppose if everyone in a block wanted to sell their equity then it would be possible; but not if only one or a few deed holders wanted to.
I guess a good comparison would be to that of someone investing in shares in a cattle farm or something. Do the shareholders have the right to sell the land, or are they just entitled to profits from that company.Again, great questions! Sent 25 fg for them! TY!