The guarantee fund ensures the stability of the USD coverage of Letscoin. If you accept Letscoin, you can always be sure that you can spend it again through the guarantee fund. If you do not have the option to spend within Letscoin, we will purchase your Letscoin with normal currency from you.
We always aim for a coverage ratio of 103%. We are currently well above this. We have built in sufficient collateral: before coverage falls below 100%, more than 30% of companies in Africa must go bankrupt - a very unlikely scenario. If that does happen, it will still be possible to buy national currency with Letscoin, but you will for example buy 97 cents for every Letscoin, depending on the coverage ratio.
The pure profit that an entrepreneur has left over from the proceeds of one extra sale. If an entrepreneur does not run at full capacity, he can easily make an extra sale without increasing his fixed costs. That means that extra sales only have to cover the variable costs - the rest of the revenue is pure profit! Part of that profit contributing to the risk coverage of the customer's credit is quickly still profitable, because the profit margin on one additional sale is often very large, and otherwise the potential customer simply would not have the money to actually become a customer.
Turn around time
The circulation time / term of a Letscoin indicates how many days you can buy regular currency from the guarantee fund with Letscoin. You can see the average turnaround time of your Letscoin when you log in to your checking account. If you transfer money to another account, Letscoin of the transfer will also receive this average turnaround time.
At this moment the turn around time for all accounts is still 0 days. If the turn around time / day counter is to be used definitively, all members will be notified.
Letscoin stands for Local Trading Systems and is the currency of Letscoin. One Letscoin is worth as much as a normal US dollar. The difference is that Letscoin is digitally instructed to continue to circulate locally for a minimum time (the turn around time). As a result, the local community more often benefits from the value of Letscoin. The instruction to circulate a certain period (usually six months) locally is given within the Letscoin: Cyclos payment software.
The term Dollar is a technical name for Letscoin; the currency of Letscoin. The word "term" refers to the fact that Letscoin is given a descending term in days. After the term of the Letscoin balance, that balance can be used to purchase national currency from the cover account. This gives participating entrepreneurs the certainty that if they are paid in Letscoin, they can always spend it on what they need.
Letscoin uses the Cyclos 4 PRO payment software developed by Stichting STRO. This payment software was awarded by the international payment industry in 2014 with the prize for the most innovative payment software. Around 10 million people worldwide make their daily payments via Cyclos. With the Digipay4Growth project, the European Commission supported three pilot projects in Europe to implement the special innovations in this software.
Letscoin consists of different communities - groups of companies, individuals, associations and cooperatives that work together to strengthen mutual trade with Letscoin. They each have their own objective - for example, to strengthen the local economy, or to make value chains more sustainable - but they all want to improve the financial system. The communities are managed by a local team. They use their own name for themselves and for their Letscoin.
The members of the communities trade with each other. Most communities are local or regional, but there are also initiatives that operate nationally and internationally. In all cases, mutual trade is possible, whereby we ensure that trade between the communities remains balanced.