clearly, you've put a lot of thought into this - I was thinking also the the main issue to being competitive would be to ensure that storage and protection fees are in line with what already exists. If it cost to much to hold it , protect it and distribute it then as you said - there is no reason for it . A one time fee for redeeming it or transferring it might be able to cover to cost of holding. Since the blockchain can track it all with minimal human intervention , the cost of processing should be MUCH lower than it is now with gold. I think there is a good case for it is someone can set up the infrastructure properly.