Thank you @jd119! You answered at least one of my questions, it looks like the project is still being actively worked on :). What is the best place to follow the meetings that the association is having in order to stay up-to-date?
I’m interested to keep learning about the questions above – though at least #1 one seems to be decided based on the existing marketing materials – including this paper: it sounds like there will be one Libra token although reserves are held in multiple currencies – not that there will be multiple Libra tokens representing each fiat currency.
The second also seems to be answered in one sense: the value is expected to fluctuate with respect to individual currencies, this speaks to a more static reserve makeup than dynamic, however I also see that the reserve is subject to change, so #2 is still something I’m not quite understanding.
#3 is mainly open for me because I see that the idea is to invest in stable securities but I don’t see what the hard requirements are, my guess is these are necessary outputs from the association before launch & I’m curious if any have been set.
I’m curious what is done with the excess profits that are earned in interest from these investments since it’s only mentioned what will be done first: used to fund the operations of the association, and what will NOT be done: “Users of Libra do not receive a return from the reserve.” I see something about investment tokens, it seems like the excess profits will aggregate into whoever is holding these investment tokens, perhaps through distribution of additional Libra? Whoever is holding these investment tokens seems to directly create a loop of risk/reward incentives since naturally the investors would want to make sure they are able to earn money through investing the users’ money. I can’t see if there has been an idea to give the excess money back to users, though, which would be implicit if the excess funds were instead added to the reserve without increasing the general token pool.
#3 may hinge on a few things:
#2: which central banks are chosen, in what proportion, and how will/won’t that change over time?
- what timeframe of securities are invested in?
- will there be the freedom for the Libra reserve money managers to buy and sell these securities in the open market, to only buy, or to only buy directly from governments?
- will there be the freedom for the Libra reserve money managers to increase the leverage on these government securities?
- what happens to the accrued value that isn’t spent on the operating expenses of the association (is this the purpose of investor tokens)?
#4 seems to be an existing open question. It seems possible Libra may provide non-fiat users with a useful way to interact with merchants. Although I can’t currently imagine holding fiat currencies through government bonds and giving away the interest I earn in exchange for lending to someone as risky as a government, but, IF [I could simply exchange my held assets for Libra at the point of payment] then Libra could be a valuable way for me to 1/ Pay with lower fees & 2/ hold value in the method of my choosing.