Shoes, my favorite monetary standard

Seriously, one coin redeems, in tax dollars, the price of the median shoe, locally.  It works like frequent flyer miles, shoe store can accept them and redeem them for dollars at nearly the posted price. Like a bank, the shoe store can charge a redemption fee.

Shoe stores are the automatic banks, and the redemption price is not always the same price offered by the local shoe store.  There is a binding here, the shoe store owner benefits when it can collect as many units with shoes, as with dollars. So, in the comparison, all shoe stores are more accurately inventoried, flow less volatile, shoe markets better segmented, and happier feet all around.  But it becomes a discount coin, shoe store owners have fiat power via the fee.  They see the binding, they separate the internal and external causes of volatility. The shoe coin eventually becomes a partial price in a dual pricing system, just like grocery coupons today.

This works, shoe store owners prequal and join the group, statistically, anonymously. But the owner contract is a liquidity provision, they have to support cash in advance for fellow members.  Thus is a critical theme in liquidity groups, always the  idea is for members to spot insider info and bring the arbitrage opportunity into the group.  All good trader groups have the standard  asynchronous S&L trading pit.