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How States Benefit

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.

The State Reserves

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.

Zero point of failure

Concoin tokens (US&ON) are created with multiple Concoin private authorization keys that are held by state agencies. Those agencies certify and broadcast creation transactions on the blockchain. This model prevents a single person from issuing (US&ON) on their own, which would represent a single point of failure and a security risk.

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.

Concoin Kiosk

  • The Concoin kiosk is the primary tool for inmates to transfer tokens, and pay for purchases through the inmate store.
  • Each time an inmate makes a transfer, the state receives a small percentage of the transaction. Concoin is set up to collect fees in a similar way to credit card companies that charge merchants fees per transactio.
  • Transactions are done from kiosks and are processed within minutes. Transaction fees paid to the state also process at the same time as the inmates transactions.
  • Inmates can receive funds securely within in minutes, reducing labor costs to the state from processing mailed-in payments and transactions done by hand.

Frequently Asked Questions

What is Concoin?
Concoin is an Ethereum-based Stablecoin – a type of digital asset that has an equal 1:1 value with the U.S. dollar. That means holders can redeem one Concoin for one dollar at any time. Every (US&ON) is backed by one dollar that is held in accounts managed by state agencies.
How are Concoin tokens protected from crypto volatility?
Concoin tokens (US&ON) are created with multiple (US&ON) private authorization keys to certify and broadcast creation transactions on the blockchain.
Concoin’s multi-signature (or multi-sig) model prevents a single person from issuing Concoin’s, representing a single point of failure and a significant security risk. Each state is assigned an authorization key, which is required to create new tokens.
What is the state's cost to use Concoin?
There is a short-term investment cost to the state to use Concoin. Each kiosk comes with a fee, also installation and inmate training also have a cost, but with the income made from the reserve, the state can recover the initial investment quickly.
How does Concoin helps reduce labor costs?
Allowing inmates' friends and family members to send Concoin's directly will drastically reduce the number of checks and money orders being mailed for handling and processing. It will also reduce time spent on accounting disputes.