How it works

Say Julie wants to send Thato some funds, she can do so using a blockchain's cryptocurrency, the problem is cryptocurrencies can be quite unstable in prices. When Julie sends Thato $1000 worth of crypto, it might be worth $800 by the time Thato receives the funds if prices fell. That is where the stakers come in. These are people that stabilise the value of Julie's $1000 to make sure that when Thato receives it, it's still worth $1000. Stakers have to lock away reserves to achieve this and take the risk of loss on behalf of the transactors in exchange for a fee reward. The reward is a small fee paid to the staker for stabilising the asset exchange. This fee itself is determined by the total amount of staked reserves available on demand, the smaller the staked reserves the higher the fee, the higher the staked reserves the lower the fee. Even though Julie used a cryptocurrency to facilitate the transfer, she does not really hold any, she holds a contract issued by the smart-contract and can decide to liquidate it to local currency or hold it perpetually for a future local currency liquidation. When one sends funds, they are essentially exchanging contracts, not crypto, that are backed by Juana reserves. Therefore, Julie is not transferring actual money over the network, she is sending value in the form of a contract for an asset. The two individuals can be in two different countries and all Julie would have to do is have a contract generated using the reserves of the receiver's country. Withdrawal to local currency is done via our partners directly to the recipient's account or money wallet and soon to include registered Withdrawal Agents.