Jun 30, 2018
BOB Token Community Lending Pool FAQ
What happened?
On June, 26, 2018 at 5 PM we made one of the biggest announcements in our company’s history. We announced the updated Bob’s Repair tokenomics model that outlines the creation of the BOB Token Community Lending Pool.
What is the BOB Token Community Lending Pool?
The BOB Token Community Lending Pool allows BOB Tokenholders to place their tokens in a special smart contract and earn interest on those tokens, paid to them by customers that use BobsRepair.com .
Why do customers need BOB Tokens?
BOB Tokens are needed to take advantage of the cool features of smart contracts built around Blockchain technology such as the BOB Token escrow service. BOB tokens are required for the Blockchain-based system to work: fraud-less reviews, the escrow system, tying identity verification to each job, permanent reviews that hold contractors responsible for their work, etc.
Why is this lending pool needed?
The price of BOB Tokens may not always be stable.
Without the lending pool, when getting a job done, customers would have to go to our website, purchase BOB tokens, deposit them in our escrow service and hope that the price of these tokens does not go up or down by the time the job is done.
With the lending pool, they simply pay with a credit card and let the magic happen behind the scenes, not having to worry about price fluctuations.
How does the BOB Token Community Lending Pool work?
What happens behind the scenes is that when a customer goes to fund a job with a credit card on Bobsrepair.com, an equal amount of BOB Tokens (at market price) is automatically borrowed from the lending pool and put into the BOB Token escrow service.
Once the job is completed, the BOB Tokens that were loaned to the customer to power the escrow system are automatically sent back to the lending pool and the fiat money (credit card, bank transfer, etc.) that the customer deposited is sent to the contractor minus the lending pool fee. This lending pool fee is converted from USD to BOB Tokens by buying them off the market and is then sent to the BOB Token Community Lending Pool.
How does this benefit me, the owner of BOB tokens?
Once the lending pool smart contract is published you will be able to decide if you want to send your tokens to this smart contract in order to lend these tokens to customers and receive interest on these tokens you have placed in the pool.
Isn’t it unnecessary to try to explain Blockchain and tokenomics to each home repair/service customer?
We believe that customers should not have to worry about anything more than getting their repair done or their kitchen remodeled. That is why we announced this lending pool in the first place. The customer simply pays with a credit card online after being quoted by the contractor, and the allocation of BOB Tokens as well as fees are handled automatically in the background.
How does this benefit everyone?
- The customer feels in power because he/she can release his/her money as the job is being done, and the contractor feels safe that he/she will receive his/her money upon completion of each part of the job.
- The customer feels great that the price the contractor charges him/her will be visible to future clients forever and will be added to his average pricing score, ensuring that he/she is charged fairly.
- Furthermore, the customer also feels good that his/her review will be stored permanently and that the contractor will be pressured to deliver an outstanding service.
What could be the potential effects of this lending pool on the BOB Network?
The more home repair transactions there are on the BOB Network the more BOB tokens will be required by these customers to use the service and the higher the return for community members staking their tokens will be.
As fiat money transaction volumes (credit card and bank transfer volumes) grow, more people will be incentivized to purchase tokens off of the market and stake them in the lending pool to take advantage of the interest earned from lending these tokens to fiat money customers (credit card and bank transfer customers).
For future updates we always encourage users to subscribe to our Twitter feed @bobsrepair . That is where we post very important information on a regular basis.
Where can I learn more about the BOB Token Community Lending Pool?
For more information we recommend that you read our Medium Post that clearly explains the BOB Token Lending Pool. It is a 3 minute good read:
https://medium.com/@BobsRepair/announcing-the-bob-token-community-lending-pool-13334f05b4c1
Important disclaimer: Tokenomics related proposals made by Bob’s Repair, including the announcement regarding the BOB Token Community Lending Pool, are subject to evolve and change at any time in any capacity. Development of various Bob’s Repair tokenomics models are still in progress.
