What is the main idea behind CrowdBucks?
CrowdBucks offers a new kind of digital currency platform for managing transactions online, and is comparable in some ways to a typical banking system with innovative features that encourage purchasing power to circulate more effectively within a given region or community. CrowdBucks is intended as an open, fair and inherently stable, complementary monetary system without the need for interest and continuous economic growth.
What exactly is a "CrowdBuck"?
A CrowdBuck (Trade Dollar) is a kind of Voucher that is intended to represent value. In its simplest form a CrowdBuck is a digital receipt that shows some type of transaction occurred. The main difference between regular money and CrowdBucks currency, is that instead of being issued in a top-down fashion by a Bank or a Government, CrowdBucks are issued in a bottom-up fashion, by the people and businesses that use them to conduct every-day transactions.
One important advantage of CrowdBucks is that they are backed by real goods and services provided by our Members, whereas regular (bank issued) money today is backed by nothing. CrowdBucks / Trade Dollars are also issued interest-free, which means that they are inherently less expensive to use than regular cash or credit.
How would this new form of Money be created?
CrowdBucks will initially offer two key types of trading instruments that work in similar ways to conventional checks and cash.
Both types of currencies are created by the trading partners when they buy or sell their goods and services. The idea is based on a simple concept of "mutual credit" that operates much like the idea of paying on terms does today, where everyone agrees to deliver their goods and services first and then accept payment (in a common currency) a short time after delivery has occurred. One big difference is that because the CrowdBucks trading system is cloud-based, payments happen automatically in an instant, so you never have to chase overdue payments or worry about collecting bills.
Two Types of CrowdBucks:
Private CrowdBuck Vouchers (CVs) are issued as a digital "Scrip" and are similar in many ways to regular bank checks, gift certificates or store-issued coupons, etc. Each CrowdBucks CV is based on a digital contract that can contain whatever details are required – virtually anything – public or private. We simply help our members to manage transactions based on the specific CV contract. CVs can have any set value (including zero), and can only be redeemed from the entity that originally issued the Voucher.
Public CrowdBucks Currency (CBs and/or CCs) can be created in a variety of ways, with each CB currently set to represent the same relative value as one standard dollar. We anticipate other types of CrowdBucks currencies to be created for virtually any type of trading community and could be based on hours of work, or an international basket of currencies to help protect against inflation and speculative trading, etc.
What makes this idea work on a large scale?
Credibility and Credentials. A successful CrowdBucks marketplace will primarily be based on mutual trust, so there will be a variety of mechanisms in place that can assist users in managing trust. "Facebook Likes", "eBay Ratings" and similar concepts will be leveraged to help users in making informed decisions about who they are dealing with. Ratings from recent transaction partners and other measures will assist in ensuring a high level of ethical business practices are followed. An "open system" that offers a high level of transparency and related historical information will help the Crowd to quickly weed out the bad apples, and also help to ensure that each Member receives credit where credit is due, etc.
Will CrowdBucks offer Equity CrowdFunding?
Our initial CrowdFunding service will fill a niche that is just below the equity CrowdFunding level, so financial contributors (Funders) are not buying actual stocks or shares in a company, however they are getting a specialized digital contract that records the investment and entitles the Funder to whatever is being offered by the project once it reaches fruition.
What advantages are provided by using CrowdBucks?
A great many advantages are gained by engaging in a trade oriented marketplace, including lowering costs, enhancing sales and increasing the bottom line.
1: We enable our members to use their sales in order to pay for their purchases.
-- This means that members are paying for each purchase using their own cost of goods. ( Buy at regular retail prices – Pay with your own wholesale cost. )
2: CrowdBucks can be used effectively as an international tool to conduct trade across currency zones. (You do not need to have a separate bank account for using different national currencies, etc.)
3: New Sales and New Customers
All Members get to advertise their wares for free to other Members, and CrowdBucks agents are always available to help you buy or sell goods and services in the marketplace.
4: Security and Safety
Using an open and transparent trading system and a value-based public marketplace means that its easy to build trust with your trading partners. Ratings and historical information assist buyers in determining where to purchase. Merchants are motivated to provide great service, as having a good reputation among the crowd will mean a great deal in an open marketplace.
5: You don't have to collect on invoices.
Collection is done automatically as part of the overall service, and is typically performed in real time, so you get paid in an instant.
What advantages are provided by using CrowdBucks over existing Reward or Equity CrowdFunding platforms?
Using CrowdBucks CVs for CrowdFunding offers an elegant solution to issues related to regulations and restrictions surrounding Equity CrowdFunding scenarios, etc.. The flexibility of using a private currency rather than national currencies and regular securities, allows for a wide variety of scenarios that may not be allowed under traditional equity relationships.
Initial CrowdFunding activities using CrowdBucks will help seed a diverse CrowdSourcing Network with a flexible new currency in a fair and responsible way.
CrowdBucks CrowdFunding - Example Use Case
~ Helping Entrepreneurs to pre-sell a product or service.
Scenario #1: ~ (Private CrowdBucks) Company "A" wants to raise $100K to create a new social-business service. The company registers on the CrowdBucks website and creates a new project with details of the new offer. A visiting CrowdFunder decides to provide one thousand dollars toward the project and in return receives a CrowdBucks Voucher (CV) for one thousand CrowdBucks (Note: This issued CV could also be for either more or less than was contributed -I.E. A Charity may provide a 0-value voucher, or a new business may offer a premium value providing a pre-set ROI for the contribution) . This CV is intended to be redeemed by the project for the specific product or service offered once the project goals have been realized. The CrowdFunder can optionally choose to sell or trade their Private CrowdBucks at any time using a complementary-currency exchange system, etc.
Scenario #2: ~ (Public CrowdBucks) Similar to the above Private CrowdBucks scenario using a (CV) except that Company "A" agrees to issue and accept Public CrowdBucks (CBs) at par value for the products and/or services they currently offer. The CrowdFunder is then able to exchange their CBs for the goods and/or services provided by any other participating members in the CrowdBucks marketplace. They may also choose to sell, trade, or simply redeem the CBs with the issuing company as in the first scenario.
Potential CrowdFunders can also invest "in kind" rather than in cash. For example if a CrowdFunder wishes to invest their time and/or provide goods or services to a project, they can do so and still receive CrowdBucks from the project. If the project does not need the goods or services being offered by the CrowdFunder, the voucher can simply be moved to the Public Marketplace where it can be sold for either cash or for CrowdBucks. The resulting payment for the goods or services offered is made directly to the Project who then in turn issues the appropriate CrowdBucks to the original Funder.
CrowdBucks can also be utilized in a similar fashion in our CrowdSourcing Marketplace, as all public CrowdBucks are backed by all members. CrowdSourcers can be paid using CrowdBucks and can redeem the CrowdBucks for any other goods and services in the CrowdBucks Marketplace, or can even choose to donate their CrowdBucks to a favorite cause, etc..
Many other scenarios for using CrowdBucks exist, from facilitating Group Purchases and helping Charities raise money, to Tool Sharing and International Trade.
Q: How much are CrowdBucks / CB$ Worth?
A: CrowdBucks CB$ (trade dollars) are currently pegged to the US Dollar.
Note: This present valuation method may change at some point in the future (and may instead be pegged to an Index based on a basket-of-commodities, etc.) -- This change would be implemented in order to protect our members against potential hyper-inflation and the resulting loss of purchasing power, etc.
Q: How can I get more CrowdBucks?
A: There are several ways to add more CrowdBucks to your account.
Perhaps the easiest way to get CrowdBucks (trade dollars) is to simply sell something and/or provide a service to someone, and have them pay you usingCrowdBucks CB$ (trade dollars).
CrowdBucks CB$ (trade dollars) may also be purchased for use in the Trade Network at an attractive discount. Each dollar received in US currency will provide a 10% bonus when receiving CrowdBucks trade dollars, so US$100 will convert into 110 CrowdBucks CB$ that are deposited into your trading account.
Members who directly purchase CrowdBucks trade dollars in this fashion will also be offered the ability to cash in their CrowdBucks for a similar 10% discount when receiving the US currency in return, so that cashing in that same 110 CrowdBucks trade dollars will give them US$99 in return. Note that a nominal transaction fee may also be incurred when cashing in CrowdBucks trade dollars for national currency.
A flexible CrowdBucks Line-of-Credit (LOC) is available for qualifying businesses. A Line-of-Credit effectively allows a fluctuating balance (between positive and negative amounts) in your trading account, and ensures you are able to buy what you need now, and then pay for your purchase later with whatever you provide back to the network. To find out more on how your business can apply for a CrowdBucks Line-of-Credit, simply send us a message, and we will get back to you to answer your questions and help you get started trading.
A qualifying business may also be able to create their own CrowdBucks currency, by issuing private CrowdBucks Vouchers (CBV) that are similar to traditional Gift Certificates, etc. This CBV Voucher is intended to be redeemed by the issuing vendor at a future date, and may also be traded in the marketplace in exchange for other products and/or services, including other private CBV Vouchers, etc.
Special CrowdBucks Rewards will be made available for any Member when accomplishing certain tasks, such as bringing a new trading member into the CrowdBucks network, etc..
Q: Am I required to reveal my identity?
A: No. Users can choose whether to specify their real name or remain known as a pseudonym.
Q: What charges can I expect for transactions, etc?
A: The CrowdBucks trading network is corporately owned and professionally managed. While the CrowdBucks Digital Currency we provide to our Members has no traditional bank-style interest applied, each transaction that takes place typically has a nominal charge that goes to both support network operations and contributes to a solvency fund to ensure that our trading network is sustainable in the long term.
Transaction fees for Trades by Individual Members are typically based on paying a small percentage of CrowdBucks (CB$) directly back to the network, while businesses are typically charged nominal transaction fees both in CrowdBucks (CB$) and in national currencies.
To discourage currency hoarding and help ensure an active trading system, a nominal monthly fee may also be applied to positive currency balances held in trading accounts. This nominal fee may be avoided by the member by transferring some of the unused funds to your savings account, where these saved funds may then be made available to other CrowdBucks Network Members as a no-interest loan and/or line of credit.