Great summary and I agree that KYG is going to become important if FEDI is to take off, yes now you're trusting the main fedi but if this rolls out into different parts of the world having a physical relationship with atleast one of the custodians makes sense, this could be a friend or local community group, company etc

My concern here is while this model does work, we have it here in South Africa, its called a stokvel there are times when the custodians rug, what seems to reduce rugging is the abliity to generate an income

So many times groups elect to use the capital to give out loans to members who pay back at an interest and then that capital is added back into the pot and paid back to members

Again risk involved and if you're not happy with it leave the mint, but I think it will be interesting to see how the pooled capital is used to create business models with incentives to act above board