Devcoin Fund - Exchange

This article links to Devcoin_Fund

Purpose

What does a Devcoin Fund Exchange do?

  • Allows members to exchange DVC for USD at the set members rate for that round.1)
  • Provides a platform for integration into existing business models
  • Allows anyone to exchange USD for DVC at the public exchange rate
  • Purchases DVC from Commercial Members for USD at the public exchange rate

Transparency and legality

While the term “banking” and “bank” may be unattractive to many seeing crypto currency as an alternative to FIAT currencies, the words in themselves do not define the actions, functions or intentions of a community fund making use of them

Financial Model

The financial model for the Devcoin Fund Exchange needs to fit within the Devcoin community intentions:

  • Open Source contribution to the Devcoin Community should be recognised and rewarded in a fair and equitable way
  • Members of the Devcoin community fund have access to services provided by the fund
  • Investors to the fund are rewarded for their support
  • The financial model must include absolute transparency to members including current balances of all Pools and accounts held by the fund

The 3 models to consider are:

  • Community (.org) - Community input ad involvement supports the Fund
  • Commercial - commercial services developed by the Fund support the ongoing functions of the Fund
  • Charity - Volunteers and Philanthropy support the fund

Composition

The Fund comprises pooled resources divided by purpose:

Members USD Pool

The primary output pool, this is the members exchange pool for funding the members DVC/USD exchange each round.

Members DVC Pool

The primary input pool, DVC from this pool are spilt between the Investment Pool and the Public USD/DVC Pool.

Investment Pool

  • The DVC in this pool are used for trading on the open market, on behalf of members.
  • Returns from this pool are split between the Fund Pool, Members USD Pool, Fund Bounty Pool, Devcoin Bounty Pool and the Investors Pool

Investors Pool

This pool holds investor returns

Fund Pool

The Fund Pool services the needs of the fund including: Ongoing costs associated with the Fund Website:

  • Administration
  • Hosting and Domain, SSL Certificates etc
  • Advertising

Revenue Pool

  • This pool holds revenue raised by services or products of the fund.
  • This pool is split between the Members USD Pool, the Fund USD Pool and the Investors pool

Public DVC Pool

This pool is for the sale of DVC to the public for USD at the public exchange rate.

Fund Bounty Pool

For community bounties related to the ongoing development of Open Source technologies that benefit the Devcoin Fund or its members.

Devcoin Bounty Pool

For community bounties related to the ongoing development of Open Source Devcoin technologies that benefit the entire community.


Business | Investing | Devcoin

1)
USD is used for simplicity but in order to maintain transparency and work with local banking/commerce laws wherever the Fund is based can be used

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