Redistribute Ecosystem Benefits
The loan application is rejected, then the reward is assigned to lending institutions.
DCC amount paid for loan application is decided by the borrower at own discretion, and credit institutions can set the minimum threshold of DCC and handle the priority of borrowers’ applications. In principle, the credit institution will give priority to borrowers who pay more DCCs.
Through establishment of such decentralized trading models, the entire ecosystem distribution pattern of interests can be dynamically adjusted so that the credit processing resources can be tilted towards individuals with more DCCs (those who contribute more to the ecosystem), thus maintaining the sustained vitality of the ecosystem.
Incentivize Credit Accumulation
In the DCC system, a portion (for example, 2.5%) of the loan in the application process is converted into the credit pool of the day and forms the total reward pool with ecosystem fixed incentives. According to DCCreward Agreement, on Day T+1, the money in credit reward pool will be distributed evenly to incentivise borrowers who repay loans before Day T. In the DCC ecosystem, different types of reward pools will be formed in different businesses in the future, and ecosystem participants may receive incentives for different pools when using and contributing to different ecosystems.
The daily fixed incentive is dynamically adjusted by the foundation according to ecosystem development needs, and daily fixed accumulation will not exceed the total amount of DCC. When there is no DCC that can be excavated, the incentives will be no longer given.
DCC incentives ensure that good credit behavior can obtain more convenience in lending, which encourages everyone to establish their own good credit.
Cross-border Credit Credentials
Because the DCC system provides a cross-border, cross-scenario, and cross-currency credit service of digital assets, DCC can correspond to values of different legal tender of loans in various countries, which greatly facilitates the multinational business of lending service agencies.
Being more frequently used, DCC is expected to become the anchor currency of the multinational lending service ecosystem on Distributed Credit Chain, and open the value exchange of ecosystem service providers in various countries. Through DCC, users in one country or scenario will be able to purchase data reports provided by the data providers of another country or scenario, or apply for loans from various lending institutions in different countries. DCC transactions in different exchanges corresponding to different currencies can provide cross-border settlement services.