These are important points. Thanks for bringing them up.

* Someone with a deep pocket decides to buy as much as possible at a high discount, say 1 cent per dollar, and wait 30 days and get a 100x gain in a month. *

We've addressed this concern in a very specific way through something I call the "activation cap" on GD, which limits the pace at which GD can convert to USD. The activation cap doesn't apply to merchants who have signed merchant contracts with us. But if you're a merchant partner, your contract stipulates that you have to maintain par 1-to-1 pricing between GD and USD, so merchant partners can't set separate prices or do this kind of arbitrage.

When GD is added to an account, its lifetime begins counting down immediately. Starter and basic accounts (i.e. accounts with no merchant contract) are subject to the activation cap. The activation cap is is a limit to the amount of GD that can activate (i.e. begin counting down) in a period of time. GD countdowns remain suspended until there's room for them to activate without violating the cap. This helps prevent large hoards of GD from quickly expiring.

For example, let's say the activation cap is $20/day. In other words, at most $20 GD will activate per day. If an account's only income consisted of a single lump sum of $60, that GD would then activate continuously over the course of three days, and hence would later expire continuously over the course of three days.

The activation cap does not affect users whose total GD income remains below the cap. We will set the activation cap higher than (e.g. double) the basic income so that those who only receive the basic income remain unaffected by the activation cap.

This is a form of capital control, to be sure. But since there are always merchants who will accept GD at par, I'm confident that the market value of GD won't deviate too far from USD.

* Hi from Argentina! *

Hi! I'm in the U.S., but I actually came up with the idea for Gresham Dollar when I was contemplating Greece's possible exit from the Eurozone and how they might smoothly transition to a new currency if their euro reserves were limited. My hope is to extend Gresham Dollar to international markets.

* Nobody in their right mind would buy the money, no merchant, no exchange, no other user because all of them think that the value will continue to decrease. *

That's fine. Initially, Gresham Dollar will be 100% backed by USD, and we'll be putting GD in the hands of people who otherwise won't have any money to spend, so I'm confident that we will convince some merchants to accept it Gresham Dollars. If people don't want to spend it, they can sit on it and allow it to convert to USD.

* So the only option is to save them in a drawer and wait 30 days, and after 30 days they are convertible to dollars. (At the 29th day, you can choose to sell it to someone that will have to wait 30 days or exchange it for a few cents, or wait 24 hours and get a whole dollar.) *

Yes. That makes sense. Usually, my "tomorrow dollar" is worth more to me than a "dollar in 30 days" is worth to you, so why would you give me fair value for it?

The merchant partners are contracted to accept GD at par. You'll always be able to get your full dollar's worth, with a caveat being that the number of merchants who accept GD at par will initially be fairly small.

But maybe I'm in a situation where I'm out of USD and I need to make a certain payment in USD. In that case, I may be willing to pay a premium to get that liquidity from you at 95 cents on the dollar, or whatever the market exchange rate happens to be.

Cheers.