Collateral On Sythe

Hi All,
I wanted to pitch an idea out to the community in general. Basically, I'm proposing a new system kind of like the donation system for Sythe, but for anti-scam measures. Basically, every person would have something that looks like the current donations thing next to their name, but to the right would be like "1000M RSGP Collateral Trader". If this person is proven to be a scammer (*cough cough* G Unot *cough cough*) then the person's collateral will be given up to the person scammed. This is provided that WITHOUT A DOUBT, the person has been proven to be a scammer.
I've talked to a sectional mod, and one issue that he raised was the fact that someone could donate something along the lines of 25M, and hope to scam 50M. While this in fact might happen, the Collateral would simply be insurance against amounts UP TO that. This would make it easier for traders such as me, who are looking to build up trust in the forum, but have no actual way of proving ourselves besides vouches.

The system I'm proposing would be something like this:
1. Trader wants to insure himself as a trustworthy trader, decides to put up money.
2. Trader fills out Application form, and waits for response.
3. Trader makes sure that he's giving the money to the right person....
4. Sythe Mod in charge of this would take his money, and record down the amount. Sythe gets a small processing fee for (5% for smaller amounts 3% for 300m+?) offering this.
5. Someone such as PlzNate takes the money as cash flow and sells it, because their cash pool is so large that they are able to refund money. Their payment would be the fact that they have an infinite supply of money to sell at a certain price, and buy back later at a lower price from others.
6. If a person ever decides to withdraw his/her money, he/she must wait at least 3 days to do so, giving notice to Sythe. During this time, any scam reports must be filed in order to dispute and attempt to claim collateral. Collateral will not be given until all scam reports have been resolved

I understand if this is too complicated to implement, and/or does not seem worth it to.
Thanks

 

I've considered this before, but ideas like this one have been denied before, because of the risk sythe would take itself.

 

That's why I included the 3-5% processing fee. I understand it's risky to do so, but I'm proposing immediate liquidation of RSGP into cash through an authorized seller so that he can keep it safe

 

but then the thing goes, who is realy trusted enough to hold on to all that. Yes members trust other members to a certain degree, but would you really want to have a single person holding so much value. Say there are 300 members who would do the 1000M+ collateral, while another 10,000 members (just throwing numbers out here), each do 100M+ collateral. Would you really want one person to be sitting on potentially a life changing amount of cash.

 

The only problem which occurs with this is say one person has 20mil collateral but scams 5 members for 20mil each, which one would get the collateral and say a scam report comes up later but the 20mil was given to the first one then 4 more people would still be entitled to a split in that pool of gp and then sythe himself would be responsible as there were 4 others scammed who were left out of the insurance.

 

Good point, that was 1 thing I just thought of, because I'd think that the thing would be split between the 5 confirmed. However, any system can be abused. I was told by a Mod that a few donating people chargeback their paypals, in order to seem trusted before scamming.

 

I came in to post this

Good thinking punjab

 

This should go in the suggestions forum's but full support here!

 

great idea man but i just don't think it will catch on. i personally think that something along those lines would be a perfect fix to many scams

 

This Idea has been brought up before and never went through as to why I don't know but it would definitely make sythe somewhat safer. Like you said yourself there are ways around any system and this is true about this one aswell. I think it's more of why go through all the trouble to put this system in place if their will still be scammers out there.Think of it like runescape and it's trade restrictions it only slowed us down it didn't completely stop us.

 

This isnt going to happen. Been denied due to the reason in the posts above.