Thursday, November 23, 2017

The mechanics of acapulco coin

Acapulco coin is used as a tourist discount coin in Acapulco, the local tourist association agreed to act as trusted brokers for the coin. One acapulco coin buys the one eighth of the typical hotel room in Acapulco.  We get the statistics of the hotel room purchased, at the nightly rate because we have the entire sequence.

Now the hotel association, the honest brokers, construct the distribution to three bits of accuracy, or 8 'hotel bins',  then the hotel owners exchange acapulco coin for bitcoin to target a one for one match between typical rooms purchases and cons available.

The total price of a room is bitcoin (being central bank neutral) and the acapulco coin, for the typical room almost all hotel owners accept 1/8  Acapulco, the rest btc.

Acapulco coin is backed by its utility to hotel owners, it is the even money price. Hence the cost of pricing has gone to nearly zero, the rooms are auto priced. Acapulco coin also is granular, it is a local coin and local tourists have access to the hotel exchanges, so they can the coin to buy from the taco truck. It is a branded sidechain of btc but still supports local pricing.

How do the hotel owners avoid the trilemma problem? The utility to the hotel owners is much greater than the implied trilemma bias and they are willing to take a bit more losses on the coin than normal bankers. The coin bit error is about 12%, but there are few hotel owners, and their internal liquidity covers the 12%.

They have the flexibility, for example, to run  their hotel restaurants completely in Acapulco, avoiding the btc ledger fees. It is a short loop to the desk exchange. Mathematically, think that the loop is short in Acapulco proper, it is a contained service economy.  That loop is the trilemma, the hotel owners can manage it.

Give the tourist an acapulco card

The tourist is already validated, and checked in, So the tourist gets the local card for spending, the card act like a normal debit, but it clears back at the hotel desk.  These debit cards cost a buck.

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