Cooperative currency and a loyalty program for small businesses

ValVal Member Posts: 1
edited September 2015 in Projects
BoomR Club, is a network of Businesses and Consumers, that create a parallel economy using a decentralized BoomR Application and a cooperative currency - BoomR Coins - allowing more equitable trade.

The idea is a combination of the following business models and concepts:
-Local Exchange Trading System (LETS)
-Third party operated Loyalty program with a referral incentive
-Mobile wallet (for Consumers and Businesses)
-Mobile Business catalog

In a nutshell, the key of the innovation is to decentralize the money creation, and to share the fruits to everyone who participates in the new economy by committing to offer their services and / or products and to accept BoomR Coins, thus providing the Coin’s purchasing power via new kind of decentralized backing. Unlike the existing FIAT monetary system, the BoomR coins are free of debt. Essentially, instead of creating money as a debt against a commitment to pay it back with interest, the BoomR Coins are created against a commitment to accept certain amount weekly as a payment. Each Coin is worth 1$ and the Businesses can use the Coins in a similar way as Consumers at other Businesses.

The businesses are incentivized to increase their trade in Coins gradually by creating the amount of coins that equals 5 times the amount of their commitment to trade weekly. This amount would be deposited directly to their accounts upon commitment. If a business wish to lower their weekly trade, they would have to save the same amount (5 times the change in their weekly trade), which would be eliminated from the circulation. The money supply would thus dynamically respond to the economic activity in the network, keeping the velocity of the money constant.

Coin payments are made and dollar payments registered using a BoomR mobile wallet, that will also be used as a Business catalog listing the Businesses, that currently are accepting Coins, and the businesses that are offering Coins as discounts for loyal Consumers. The secret sauce of the concept is how the discounts are shared as Coins to the Members in order to create an incentive to invite new Members.

The value propositions of the BoomR network are attractive:
-For the Consumer Members BoomR is free to join and it allows them a possibility to earn as much as 100% of their spending back in coins.
-For the Business Members BoomR offers a virally growing customer base, that increases their customers loyalty and dollar spending, with no upfront costs.
-For the community BoomR offers increased liquidity, which increases the economic activity, and by promoting local providers, it helps keeping the money inside the community, making it absolutely richer when measured in dollars too.

More detailed description is available here, including a clickable mockup of the user interface.

I would like to share the project with people who believe in it and can engage in a productive manner. Please get back to me with your comments if you bothered to read the attached business plan.

The core values of the BoomR project are: Equality, Locality and Liberty :smile:
Post edited by Val on
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