Consignment Distribution — Cheque as Commodity

A USDC cheque is not just a digital instrument — in the distribution model it is a product with a face value that acts as its price tag. The issuer manufactures batches, and merchants are distributors who sell these products to end customers.

Key Financial Events

Event	Effect on Merchant Debt
Batch shipped to merchant	Contingent liability created for cheques in stock
Cheque activated (sold)	Liability fixed and increased by the face value
Cheque returned (unsold)	Liability reduced by the face value
Cheque expired unactivated	Returned to issuer and liability cancelled
Settlement payment received	Debt cleared by the paid amount
Rebate paid by issuer	Separate credit to merchant and not a debt reduction