Reserve Program Explained
Updated: May 4
In our previous blog post I explained what the FRESH START RESERVE PROGRAM is and why it is so critically needed. Here I want to explain all the ways in which we will be allowing members to spend their RESERVE TRADE DOLLARS.
FRESH START RESERVE PROGRAM
For every three, new dollars of sales you do, you will receive one of your RESERVE trade dollars at the end of the month.
ie. I sell $1200 worth over the course of a month. The exchange transfers $400 from my RESERVE ACCOUNT into my primary account.
The RESERVE PROGRAM is a strategy to temporarily draw trade dollars out of circulation.
The purpose of the RESERVE PROGRAM is to pull trade dollars out of circulation long enough for us to build membership large enough to support those trade dollars. This will be a balancing act as we closely monitor trade activity and, when it makes sense and sometimes on a case by case basis, allow the use of reserve trade dollar accounts to make deals happen. These deals will fall into three categories:
The exchange may, on occasion, allow a member to sell their product or service to other members as a RESERVE SPECIAL. This means the buyer can use their RESERVE TRADE DOLLARS to buy the product or service the member is offering. This is another way to bring reserve trade dollars back into circulation as the seller will then have full use of those trade dollars throughout the network.
This is when two members agree to do a transaction between RESERVE ACCOUNTS using reserve trade dollars. In this case the buyer and the seller agree that trade dollars will be withdrawn from the buyer's RESERVE ACCOUNT and placed into the seller's RESERVE ACCOUNT. (If the seller doesn't have a RESERVE ACCOUNT one will be created for them). Note that, as long as the buyer and seller are both in agreement, the exchange will help facilitate these deals.
This will be rare but on occasion, if the exchange deems it prudent to draw more trade dollars out of circulation, a RESERVE INCLUSION deal may be proposed. In this case the buyer will be spending their dollars as usual but the seller agrees that these trade dollars will be put into their RESERVE ACCOUNT. If agreed to, by the seller and the exchange, the exchange will not charge the seller any cash commissions on that transaction.
HOW IT WORKS
You tell us about the RESERVE deal you'd like to pursue. Once sanctioned by the exchange, the seller will provide the buyer with a quote/proposal based on their consultations with you. Once you approve the quote/proposal and the dollar figure is calculated LBN will handle the rest.