Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
I grok prepay. I've been administering a prepay food coop for some years. Everything is prepaid (in euros, but it could be a local currency if everyone agreed on it). However, it's an account and not a certificate system.

The money people put in is credited to their account and the goods they receive are debited. There is no absolute guarantee of delivery: if a producer has problems and can't deliver, all concerned may decide he can keep the prepay without supplying the goods, because the aim of the system is to support local family-level quality farming. (At least, this is a principle written into our contracts -- in practice, producers prefer to waive their rights in this kind of case.)

What my comment above was getting at was that your system is certificate-based, and the certificates are bought and sold on a market. You say there is no guarantee of delivery. I can only imagine you mean dated delivery, because if the certificate is redeemable against supply (delivery? is there a difference?) and there is no supply, we'll see an almighty crash on the market for these certificates. In fact, without a guarantee of supply/delivery, no one will buy the things in the first place.

Or, as you say below in a reply to askod,


When examining and judging energy prepay unit issuance you have to have regard to the rate, and the likelihood, of a flow of energy over time.

This implies what I have heard described as 'confidence accounting'. ie the probability that a particular flow will be achieved.

In fact, a right to delivery is essential, or no one will have any confidence in the system. So I don't think you've answered Mig's question:


how do you prevent more money to be created than there is available energy, and how do you prevent energy certificate hoarding and "cornering the market" so to speak.
by afew (afew(a in a circle)eurotrib_dot_com) on Sat Sep 7th, 2013 at 02:52:56 PM EST
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