Simple Idea for P2P Steem Loan System
Hi. Reading a recent post from @klye, I figured that there is a code-free, reputation-based way to set up a consistent P2P loan system, with all transactions performed and recorded on the steem blockchain.
For example, let's say someone needs to borrow 1,000 Steem and is prepared to pay back 1,100 within two weeks. It could work as follows:
- Borrower writes a post, stating how much he/she needs to borrow, for how long, and how much interest he's prepared to pay back. Ideally, one should not borrow more than the amount he holds as SP.
- People willing to make a loan offer write a comment on the post and state the precise terms of their offer (duration and interest).
- Borrower picks the best offer and accepts it by replying "OK" to the corresponding comment. This is a formal, public engagement to comply with the offer terms.
- Lender then sends the funds via a Steem internal transfer, with a public reference to the loan terms.
- Repayment(s) will be sent back by borrower in the same way.
In this way, we have a public "loan contract". Borrowers breaching the loan terms will be publicly exposed and they might be sanctioned by the community through flagging.
A typical loan scenario could be: I hold 8,000 SP but I need Steem NOW. So, if someone sends me 7,000 Steem now, I promise I will start powering down and send all proceeds to my lender over the 13-week powerdown period...
Comments? Ideas?
Interesting idea but you can transfer SP to other account instantly. You don't need to wait 13-week.
No. As far as I understand, if you have liquid Steem, you can power up another account. But if it's already in the form of SP, you cannot move it. Please someone tell me if I am wrong...
Yes, you are right. I was fooled by this link: https://steemit.com/steem/@kingscrown/steemit-guide-send-steempower-to-any-account-directly. I thought this is something new.
But you can transfer the whole account within CLI wallet. In this way, I started. I bought this account in times when there was no Steemit.com. So collateral can be your account if you needs to borrow some STEEM.
Perhaps if you also included in the public loan contract a promise from several users who would agree to flag the user if the loan repayment was not made. This is kind of the opposite of vouching for someone, you're saying, "I would use my stake enforce consequences for defaulting on this loan."
Otherwise it would be left for people to randomly flag this person.
Interesting idea, although these "punishers" would gain nothing out of acting as law enforcers...I think it's better to leave this as a moral duty on the community at large...
The problem with that is that you would have to bring people up to speed on the contract and make your argument to them to flag them, and you'll still be resting on their willingness to flag them with no gain and potentially exposing them to repercussions.
I can imagine coming across such a post and ignoring it because I wouldn't want to get involved in someone else's business, especially if accusations are being thrown around on both sides. It would be a bit chaotic.
The way I described the process should leave no room to chaos or misunderstandings, as all money transactions, with time stamps, will be on the blockchain. So, either the promised money is sent, or it's not...
and if it is not, the chaotic drama ensues. Much better to have agreements and penalties included in the contract.
I would also not take out such a loan because it may expose myself to an unknown number of flags, maybe from whales. If the consequences may be complete obliteration of my rep, the risk becomes massive for the person taking out the loan. On the other hand, for the person loaning, they may get no one flagging. There's no way to know.
Sometimes people default on loans or are late with payments not because they want to but because they fall on hard times or have personal problems, etc., so not knowing up front what kind of consequences you're exposing yourself to makes it far too risky.
tbh we would need a separate website to do this easily
thnks for sharing @claudiop63
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