If all you have is a redeemable scrip with a face value of 1 unit, you can't have an auction.
I don't know whether you can even have an auction if there is some redeemable unit-valued scrip left outstanding because if I hold the unit I can always outbid everyone else (if you bid €10 I can bid €11 and then pay with one unit of scrip rather than cash) but if there are two units of scrip outstanding there can be no winning bid.
I guess you can always do it pro-rata. You specify that any scrip presented on the third friday of the month before close of business will be redeemed pro-rata at auction before any cash bids. You also specify that you'll be putting up for auction no less than a set amount of units of production (in my example, 10 per month). En un viejo país ineficiente, algo así como España entre dos guerras civiles, poseer una casa y poca hacienda y memoria ninguna. -- Gil de Biedma
If the Unit market price is above the physical market price then a consumer will not buy Units to redeem them, since fiat money is cheaper to use.
He will buy as many Units at the exact physical market price as he can use in the spot period. He may buy more Units if the price is below the market price and he has a future use for Units, but the price he pays will reflect both fiat money interest rates to the expected date of redemption, and expected energy price inflation.
Scrip is presented bilaterally to your supplier if that is in your interest. There is no need for an auction. You cannot redeem more Units than you have had energy in supply. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
- Jake If you only spend 20 minutes of the rest of your life on economics, go spend them here.
A banknote is undated, too: it's just that it is redeemable for....errrr....another banknote. "Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
Money is just a ritualised IOU.
collect taxes by weight of manure.
Best description of a market economy ever.
