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What is the purpose of Voucher Currencies?
Voucher Currency Questions
Voucher Currencies serve as a stable unit of currency within the Vow ecosystem. Each unit is backed by its ability to claim a discount of equivalent value in goods and services across the ecosystem, as well as an additional deposit of VOW.
Because the business have vowed to accept back the the total value of Voucher Currencies they issue, each unit always has a value equal to the local fiat currency.
This means that in a US dollar based market, if a Retailer is able to distribute v$20 of Voucher Currencies, it must have locked up $4 US worth of VOW tokens.
In order to distribute Voucher Currency, the same time guarantee to accept back the v$20 as a discount, against their goods and services when the consumer wishes to redeem them.
At the point of redemption, the issuer may unlock and recoup their original VOW deposit.