For the users, PASS tokens are their deposit insurance. If the receiver does not receive the parcel, the sender receives valuable tokens from the person(s) in charge of the transfer of parcel and which were hold as insurance deposit. With the development of delivery services using the system, the token price should reach stability and liquidity. We can also provide financial tools to have the deposit insurance backed to the currency defined by the user
Of course, the fee paid by the user will depend on the deposit amount, which is linked to the risk the courier agrees to take. In this way, it will be more profitable for couriers to operate with urgently or to transfer expensive parcels, but they will have more risk to lose some amount of their reputation tokens.
Note: the system foresees that the courier and not the user should take an insurance in case of late train or plane for instance. This is a main difference with centralized postal services, which cannot give guarantee to users and are not incentivized to deliver on time.
With smart contracts, smart stickers and smart objects, disputes should be rare or easier to fix. However, the system cannot be entirely automatic and we think that it is important to allow a mediation, arbitration and resolution of eventual disputes. This work is done by a DAO contractor named mediator. Note: as everything can be published, the mediator is incentivized to work fairly.
Two cases are possible:
1. The receiver does not want or cannot take the parcel. The courier can let the parcel in the nearest public postbox. If the delivery conditions were respected, the deposit should be given back to the courier even if the user does not take the parcel. In this case, the mediator examines the proofs and if they are evident, he makes a decision as to the return of the deposit to the courier. One of the proof is a picture that the courier and postbox can take during the transmission. User can then take the parcel from the public postbox and unlock the deposit paid by the postbox to the delivery smart contract.
2. The receiver takes the parcel. In case of dispute during the handover about the content and its state, the courier can upload a picture and send a proof of timestamp in the Blockchain. When taking and signing the transmission of the parcel, the receiver approves the picture. For disputes during or after the handover, the deposit is given back to the delivery service but there can be an impact on the appreciation given by the users and therefore the reputation of the service. For this reason, a reputed delivery service should partially reimburse the user.