Ethereum blockchain platform WeTrust has announced its very first Trusting Lending Circles product and Trustcoin crowdsale. WeTrust is a reciprocal aid platform that leverages smart contracts to enable all to create a ROSCA (Rotating Savings and Credit Association) within a trusted group dynamic to assist each other.
Trusted Lending Circles will be the first in a long line up of WeTrust products marketed for imminent release. The new product will apply the idea of ROSCA on Ethereum blockchain to create a transparent, trusted group or a closed community oriented investment and reciprocal aid system. Trusted Lending Circles presently supports ROSCAs set up by a small, tight-knit group of family members and close friends. In addition to TLC, WeTrust also has other products and features on the horizon, such as Large scale ROSCAs, trusted direct lending/borrowing and mutual insurance.
The Trusted Lending Circles is open to anyone who wishes to create or join a ROSCA. A group of trusted participants agree to contribute a specific amount at timed intervals, based on a mutually confirmed framework for distribution amongst the participating associates in a way that is democratically agreeable.
The total collected contribution is later allocated in a reverse auction in which the lowest the lowest bidder is offered the bidding amount, and the remainder is distributed amongst the remaining participants. The Ethereum Blockchain records every ROSCA related transaction as smart contracts underpin the bidding process to ensure transparency and eliminate the requirement for a trusted third party.
The WeTrust pilot is momentarily restricted to the cryptocurrency community, but once a precedent is set for blockchain-based ROSCAs, the platform will then extend to other communities through the integration of stablecoins for those who are comfortable with the use of fiat currencies.
The WeTrust currency Trustcoin (TRST) crowdsale started on March 2, 2017, and will continue for six weeks. Of the 100 million tokens, 80 million will be allocated to the participants, and the remaining 20 million will be reserved for the founding team, advisors and bounty programs. Founding team and advisors will receive 10 million TRST over two years, the organization Finclusion Labs responsible for building the platform will receive 8 million TRST, leaving 2 million for various bounty programs.
Participating crowdsale investors can buy Trustcoin with both Bitcoin and Ether. Those investing early on become eligible for bonuses offered for early bird investors. The platform offered the first-day bonus of 30%, after which it has been set to decrease as the sale continues.
All Trustcoin token sale participants receive their tokens upon crowdsale completion, after which it can be used for services performed by WeTrust and other service providers within the WeTrust ecosystem.
Images courtesy of WeTrust, AdobeStock