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RE: Simple Idea for P2P Steem Loan System
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.