I think it might be a good idea to test out a very stripped down version of my derivative system as an independent altcoin.

I think a working proof of concept could spark interest in a more sophisticated implementation.

Here is the simplest possible system I can think of to generate USD units of value:

1) two coins exist call them basecoin and USDcoin

2) 1 USD coin is backed by b_t basecoins at blockheight t; the value at genesis is arbitrary say b_0=1

3) r_t is the interest rate per block on USD coins at block height t. It can take on any value between -1% and 1% per block say moving in increments of 0.00001%

4) the number of basecoins backing a USDcoin changes between blocks based on r_t, as shown below

b_(t+1)=(1+r_t)*b_t

5) miners announce whether USDcoin trades for more or less than 1 USD in each block

There are three possible options: more than 1 USD, equal to 1 USD, and less than 1 USD.

6)if more, the interest rate is incremented down by 0.00001% r_(t+1)=r_t-0.00001%

If equal, the interest rate is unchanged r_(t+1)=r_t

if less, the interest rate is increased r_(t+1)=r_t+0.00001%

7) [allowable on the blockchain conversion txns in block t]

1 basecoin -> 1/b_(t+30000) USDcoins

1 USDcoin -> b_(t+30000) basecoins

Basically you can convert between the currencies, but with a ~7 month delay. The conversion rate depends on the backing level 7 months from now. The txn inputs and outputs remain unspendable until 7 months from now when the coversion rate is revealed.

Note: regardless of the backing USD value at block height h, the expected backing USD value at block h+30000 will be about 1 USD. This is enforced by the adjustable interest rate which forces the backing level torwards whatever is needed for a 1 USD valuation.

regular txns (that don't require conversions) work just as in bitcoin there is no delay. Outpits ade spendable as soon as a txn enters a block

That is pretty much it. The rest is just parameter tweaking and perhaps taxes on exceasive leveraging (I.e. overissuance of USDcoins).

There is a close real world analogy here: basecoins are equity invesyments in the system, USDcoin are USDdenomiated bonds. Equity holders own whatever value remains in the system after paying off the bondholders. Both groups take on risk and likely earn positive return. However, the equity holders face minor risks of price fluctuations thatdon't affect bondholders. Bondholders only worry about catostrophic failures that wipe out everyone.

The bonds serve as convenient stores of USD value just like paypalUSD. If paypal goes bankrupt, its customers get expropriated too.

I think it makes sense to launch this first before thinking about a more flexible syatem for netcoin. If this fails then a more complex system would fail too.