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Seller Capital Recycling

Status: Not Started
Priority: Medium
Last Updated: 2026-05-29
Contributors Welcome: Yes

What We Don’t Know

Can BCH sellers actually achieve the modeled capital recycling velocity (360% annual turnover), or are there practical constraints that limit throughput?

Why It Matters

Seller economics depend on capital velocity. If actual recycling is much slower than modeled, the 0.5% fee becomes insufficient.

Current Hypothesis

Sellers can recycle capital 1-2 times per day (360-720% annual) given instant payment rails (Bizum) and coordinated claim windows.

Investigation Method

  1. Model capital flow timing: payment → covenant → claim → recycle
  2. Identify bottlenecks (payment confirmation, claim coordination, liquidity)
  3. Measure actual recycling rates in Phase 0
  4. Interview sellers about practical constraints

Success Criterion

Measured seller capital recycling rates meeting or exceeding 300% annual velocity in Phase 0 trials.

Phase 0 Trial Integration

Track seller capital deployment, transaction frequency, and time between transactions.

Contributor Guidance

Skills needed: Financial modeling, data analysis
Estimated effort: 3-4 hours
How to start: Model capital flow with realistic timing assumptions

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