States agencies can benefit financially from implementing Concoin into their prisons via transaction fees, interest, and additional fees.
Generating additional state income can help to offset some prison operating expenses.
Traditional banks hold reserves set by the Federal Reserve Board of Governors (the minimum amount of cash a financial institution must keep on hand to fulfill unexpected customer withdrawal requests. This rate is currently set at 3%). With Concoin, state agencies can fund reserves in a similar way to banks, and invest part of those reserves for appropriations like prison infrastructure.
State agencies may also be able to use money earned from reserve investments to help offset operational costs of the state prison system.
Unlike other Stablecoins that hold funds in bank accounts, Concoin passes 95% of all holdings to states to control the funds backing the (US&ON) tokens. This creates increased trust for inmates and the cryptocurrency community to know their funds are 100% safe.
Concoin holds 5% of holdings for redemptions as individuals cash out their tokens, and as demand fluctuates for redemptions, Concoin will request funds to cover necessary withdrawals.