diff --git a/demo/silvercents/README.md b/demo/silvercents/README.md
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index 0000000..30e4893
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+++ b/demo/silvercents/README.md
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+# SilverCents Demo
+
+**Silver-backed offchain cash for local circular economies**
+
+This demo showcases the Basis protocol with SilverCents - a hybrid cryptocurrency backed 50% by DexySilver tokens and exchangeable 1:1 with constitutional silver dimes and quarters.
+
+---
+
+## Requirements
+
+- **Bash 4.0+** (included in most Unix systems)
+- **`bc`** (calculator command for decimal arithmetic)
+  - **Linux:** `sudo apt-get install bc` or `sudo yum install bc`
+  - **Mac:** Included by default
+  - **Windows:** Use WSL (`wsl --install`) or install via [Chocolatey](https://chocolatey.org/): `choco install gnuwin32-coreutils.install`
+- **`curl`** (for API calls - usually pre-installed)
+
+---
+
+## Quick Start
+
+### 1. Run the Interactive Demo
+
+```bash
+cd demo/silvercents
+chmod +x *.sh
+./silvercents_demo.sh
+```
+
+This runs a complete farmers market scenario with 3 vendors and 2 customers.
+
+### 2. Try the CLI Tools
+
+**Vendor:**
+```bash
+# Initialize vendor
+./silvercents_vendor.sh init "My Farm Stand" "Local Market"
+
+# Create reserve
+./silvercents_vendor.sh create-reserve "My Farm Stand" 10 1000
+
+# Issue SilverCents
+./silvercents_vendor.sh issue "My Farm Stand" <customer_pubkey> 50 "Fresh produce"
+
+# Check status
+./silvercents_vendor.sh status "My Farm Stand"
+```
+
+**Customer:**
+```bash
+# Initialize customer
+./silvercents_customer.sh init "John"
+
+# Check balance
+./silvercents_customer.sh balance "John"
+
+# List received SilverCents
+./silvercents_customer.sh list "John"
+
+# Redeem for silver
+./silvercents_customer.sh redeem "John" <vendor_pubkey> 25 quarters
+```
+
+---
+
+## What is SilverCents?
+
+SilverCents are on-chain tokens using the Basis protocol with the following properties:
+
+- **Backing:** 50% collateralized by DexySilver tokens
+- **Redemption:** Exchangeable 1:1 with constitutional silver dimes/quarters
+- **Use Case:** Local circular economies (farmers markets, food trucks, flea markets)
+- **Participants:** Vendors (issuers) and Customers (receivers)
+
+### Key Features
+
+✅ **Silver-Backed** - 50% DexySilver token collateralization  
+✅ **Physical Redemption** - Exchange for real silver coins  
+✅ **Local Economy** - Perfect for farmers markets and small businesses  
+✅ **Peer-to-Peer** - Customers can transfer to each other  
+✅ **Transparent** - Collateralization tracked in real-time  
+
+---
+
+## Demo Scenario
+
+**Portland Farmers Market - Saturday Morning**
+
+### Vendors
+1. **Bob's Farm Stand** - Fresh vegetables
+2. **Carol's Bakery** - Artisan bread
+3. **Dave's Coffee Cart** - Coffee and pastries
+
+### Customers
+1. **Alice** - Regular shopper
+2. **Eve** - New customer
+
+### Transaction Flow
+1. Vendors create reserves with DexySilver backing
+2. Alice buys vegetables from Bob (50 SilverCents)
+3. Alice buys bread from Carol (30 SilverCents)
+4. Eve buys coffee from Dave (15 SilverCents)
+5. Alice transfers 10 SilverCents to Eve
+6. Eve redeems 20 SilverCents from Dave for quarters
+
+---
+
+## CLI Commands
+
+### Vendor CLI
+
+| Command | Description |
+|---------|-------------|
+| `init <name> [location]` | Initialize vendor account |
+| `create-reserve <name> <erg> <dexysilver>` | Create silver-backed reserve |
+| `issue <name> <customer> <amount> [memo]` | Issue SilverCents |
+| `status <name>` | Check reserve status |
+| `redeem <name> <customer> <amount> [type]` | Process redemption |
+
+### Customer CLI
+
+| Command | Description |
+|---------|-------------|
+| `init <name>` | Initialize customer account |
+| `balance <name>` | Check total balance |
+| `list <name> [vendor]` | List received SilverCents |
+| `redeem <name> <vendor> <amount> [prefer]` | Request redemption |
+| `transfer <name> <to> <amount>` | Transfer to another customer |
+
+---
+
+## Silver Conversion
+
+- **1 SilverCent** = 1 silver dime equivalent
+- **2.5 dimes** = 1 quarter
+- **10 dimes** = 1 dollar in silver
+
+**Example:**
+- 50 SilverCents = 50 dimes = 20 quarters
+- 25 SilverCents = 25 dimes = 10 quarters
+
+---
+
+## Collateralization
+
+### Requirements
+- **Minimum:** 50% DexySilver tokens
+- **Recommended:** 150%+ total collateral (ERG + DexySilver)
+- **Warning:** 80% threshold triggers alerts
+- **Critical:** Below 50% prevents new issuance
+
+### Status Levels
+- **EXCELLENT:** 200%+ collateralization
+- **GOOD:** 150-200%
+- **ADEQUATE:** 100-150%
+- **WARNING:** 80-100%
+- **CRITICAL:** 50-80%
+- **UNDER-COLLATERALIZED:** <50%
+
+---
+
+## Technical Details
+
+### Reserve Structure
+```json
+{
+  "erg_collateral": 10000000000,      // 10 ERG
+  "dexysilver_tokens": 1000,          // 1000 tokens
+  "issued_silvercents": 7500000000,   // 7.5 SC
+  "collateral_ratio": 2.0,            // 200%
+  "min_ratio": 0.5                    // 50% minimum
+}
+```
+
+### Note Structure
+```json
+{
+  "issuer": "02abc...",               // Vendor pubkey
+  "recipient": "02def...",            // Customer pubkey
+  "amount": 5000000000,               // 5 SC (nanoERG)
+  "timestamp": 1734096000,
+  "signature": "304402...",
+  "metadata": {
+    "vendor_name": "Bob's Farm Stand",
+    "memo": "Fresh vegetables",
+    "silver_equivalent": "5 dimes"
+  }
+}
+```
+
+---
+
+## Files
+
+```
+demo/silvercents/
+├── silvercents_vendor.sh      # Vendor CLI
+├── silvercents_customer.sh    # Customer CLI
+├── silvercents_demo.sh        # Interactive demo
+├── silvercents_utils.sh       # Shared utilities
+└── README.md                  # This file
+```
+
+---
+
+## Troubleshooting
+
+### "Vendor not found"
+Run `init` command first to create the account.
+
+### "Insufficient collateralization"
+Add more ERG or DexySilver tokens to the reserve.
+
+### "Invalid pubkey"
+Ensure pubkey is 66 characters (with 02/03 prefix).
+
+### Demo cleanup
+```bash
+./silvercents_demo.sh cleanup
+```
+
+---
+
+## Next Steps
+
+1. **Run the demo** to see SilverCents in action
+2. **Experiment with CLI** to understand the workflow
+3. **Modify scenarios** to test different use cases
+4. **Integrate with real Basis server** for production use
+
+---
+
+## Learn More
+
+- **Basis Protocol:** See `chaincash/docs/basis.md`
+- **SilverCents Spec:** See `chaincash/docs/silvercents.md`
+- **Architecture:** See `docs/SILVERCENTS_ARCHITECTURE.md`
+
+---
+
+**Built for the LNMIIT Open Source Hackathon 2025**  
+Team Dev Engers | Issue #2 - SilverCents Demo Implementation
diff --git a/demo/silvercents/silvercents_customer.sh b/demo/silvercents/silvercents_customer.sh
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+#!/bin/bash
+
+# ============================================================================
+# SilverCents Customer CLI
+# ============================================================================
+# Command-line interface for customers to receive, manage, and redeem
+# SilverCents from vendors
+# ============================================================================
+
+# Load utilities
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+source "${SCRIPT_DIR}/silvercents_utils.sh"
+
+# ============================================================================
+# Commands
+# ============================================================================
+
+cmd_init() {
+    local customer_name=$1
+    
+    if [ -z "${customer_name}" ]; then
+        log_error "Usage: $0 init <customer_name>"
+        exit 1
+    fi
+    
+    log_header "Initializing Customer: ${customer_name}"
+    
+    # Generate keypair
+    local pubkey=$(generate_keypair "${customer_name}")
+    
+    # Save account
+    local account_file=$(save_account "${customer_name}" "${pubkey}" "type=customer")
+    
+    log_success "Customer account created!"
+    echo -e "  Name:       ${GREEN}${customer_name}${NC}"
+    echo -e "  Public Key: ${CYAN}${pubkey}${NC}"
+    echo -e "  Account:    ${account_file}"
+    echo ""
+    log_info "You can now receive SilverCents from vendors"
+}
+
+cmd_balance() {
+    local customer_name=$1
+    
+    if [ -z "${customer_name}" ]; then
+        log_error "Usage: $0 balance <customer_name>"
+        exit 1
+    fi
+    
+    # Load customer account
+    local pubkey=$(load_account "${customer_name}")
+    if [ $? -ne 0 ]; then
+        log_error "Customer '${customer_name}' not found. Run 'init' first."
+        exit 1
+    fi
+    
+    log_header "Balance: ${customer_name}"
+    
+    # Calculate total balance from all vendors
+    local total_balance=0
+    local vendor_count=0
+    
+    # List all notes received (from temp storage)
+    local notes_file="/tmp/silvercents_notes_${customer_name}.dat"
+    
+    if [ -f "${notes_file}" ]; then
+        while IFS='|' read -r vendor_pubkey amount timestamp; do
+            total_balance=$(echo "${total_balance} + ${amount}" | bc)
+            vendor_count=$((vendor_count + 1))
+        done < "${notes_file}"
+    fi
+    
+    local balance_sc=$(nanoerg_to_silvercents "${total_balance}")
+    local silver=$(get_silver_breakdown "${balance_sc}")
+    
+    echo -e "${CYAN}Total Balance${NC}"
+    print_divider
+    echo -e "  SilverCents:         ${GREEN}${balance_sc} SC${NC}"
+    echo -e "  Silver Equivalent:   ${silver}"
+    echo -e "  Notes from Vendors:  ${vendor_count}"
+    print_divider
+    echo ""
+}
+
+cmd_list() {
+    local customer_name=$1
+    local vendor_filter=${2:-""}
+    
+    if [ -z "${customer_name}" ]; then
+        log_error "Usage: $0 list <customer_name> [vendor_pubkey]"
+        exit 1
+    fi
+    
+    # Load customer account
+    local pubkey=$(load_account "${customer_name}")
+    if [ $? -ne 0 ]; then
+        log_error "Customer '${customer_name}' not found"
+        exit 1
+    fi
+    
+    log_header "Received SilverCents: ${customer_name}"
+    
+    local notes_file="/tmp/silvercents_notes_${customer_name}.dat"
+    
+    if [ ! -f "${notes_file}" ]; then
+        log_warning "No SilverCents received yet"
+        return
+    fi
+    
+    local count=0
+    while IFS='|' read -r vendor_pubkey amount timestamp vendor_name memo; do
+        # Filter by vendor if specified
+        if [ -n "${vendor_filter}" ] && [ "${vendor_pubkey}" != "${vendor_filter}" ]; then
+            continue
+        fi
+        
+        count=$((count + 1))
+        local amount_sc=$(nanoerg_to_silvercents "${amount}")
+        local silver=$(get_silver_breakdown "${amount_sc}")
+        local date=$(date -d "@${timestamp}" "+%Y-%m-%d %H:%M:%S" 2>/dev/null || date -r "${timestamp}" "+%Y-%m-%d %H:%M:%S")
+        
+        echo -e "${CYAN}Note #${count}${NC}"
+        print_divider
+        echo -e "  Vendor:             ${GREEN}${vendor_name}${NC}"
+        echo -e "  Vendor Pubkey:      $(format_pubkey ${vendor_pubkey})"
+        echo -e "  Amount:             ${amount_sc} SC"
+        echo -e "  Silver Equivalent:  ${silver}"
+        if [ -n "${memo}" ]; then
+            echo -e "  Memo:               ${memo}"
+        fi
+        echo -e "  Received:           ${date}"
+        print_divider
+        echo ""
+    done < "${notes_file}"
+    
+    if [ ${count} -eq 0 ]; then
+        log_warning "No matching SilverCents found"
+    else
+        log_success "Found ${count} note(s)"
+    fi
+}
+
+cmd_redeem() {
+    local customer_name=$1
+    local vendor_pubkey=$2
+    local amount=$3
+    local prefer=${4:-"dimes"}
+    
+    if [ -z "${customer_name}" ] || [ -z "${vendor_pubkey}" ] || [ -z "${amount}" ]; then
+        log_error "Usage: $0 redeem <customer_name> <vendor_pubkey> <amount> [prefer]"
+        exit 1
+    fi
+    
+    # Validate
+    validate_amount "${amount}" || exit 1
+    validate_pubkey "${vendor_pubkey}" || exit 1
+    
+    # Load customer account
+    local customer_pubkey=$(load_account "${customer_name}")
+    if [ $? -ne 0 ]; then
+        log_error "Customer '${customer_name}' not found"
+        exit 1
+    fi
+    
+    log_header "Redeeming SilverCents"
+    
+    # Calculate silver to receive
+    local silver=$(get_silver_breakdown "${amount}" "${prefer}")
+    
+    log_info "Requesting redemption from vendor..."
+    echo -e "  Customer:           ${GREEN}${customer_name}${NC}"
+    echo -e "  Vendor:             $(format_pubkey ${vendor_pubkey})"
+    echo -e "  Amount:             ${amount} SilverCents"
+    echo -e "  Silver to Receive:  ${silver}"
+    echo ""
+    
+    log_success "Redemption request created!"
+    log_info "Present this request to the vendor to receive ${silver}"
+    echo ""
+    log_warning "Note: Vendor must approve and provide physical silver"
+}
+
+cmd_transfer() {
+    local customer_name=$1
+    local to_pubkey=$2
+    local amount=$3
+    
+    if [ -z "${customer_name}" ] || [ -z "${to_pubkey}" ] || [ -z "${amount}" ]; then
+        log_error "Usage: $0 transfer <customer_name> <to_pubkey> <amount>"
+        exit 1
+    fi
+    
+    # Validate
+    validate_amount "${amount}" || exit 1
+    validate_pubkey "${to_pubkey}" || exit 1
+    
+    # Load customer account
+    local customer_pubkey=$(load_account "${customer_name}")
+    if [ $? -ne 0 ]; then
+        log_error "Customer '${customer_name}' not found"
+        exit 1
+    fi
+    
+    log_header "Transferring SilverCents"
+    
+    # Check balance
+    local notes_file="/tmp/silvercents_notes_${customer_name}.dat"
+    local total_balance=0
+    
+    if [ -f "${notes_file}" ]; then
+        while IFS='|' read -r vendor_pubkey note_amount timestamp; do
+            total_balance=$(echo "${total_balance} + ${note_amount}" | bc)
+        done < "${notes_file}"
+    fi
+    
+    local balance_sc=$(nanoerg_to_silvercents "${total_balance}")
+    local amount_nanoerg=$(echo "${amount} * 1000000000" | bc | cut -d'.' -f1)
+    
+    if [ $(echo "${amount_nanoerg} > ${total_balance}" | bc) -eq 1 ]; then
+        log_error "Insufficient balance!"
+        echo -e "  Available: ${balance_sc} SC"
+        echo -e "  Requested: ${amount} SC"
+        exit 1
+    fi
+    
+    log_success "Transfer initiated!"
+    echo -e "  From:               ${GREEN}${customer_name}${NC}"
+    echo -e "  To:                 $(format_pubkey ${to_pubkey})"
+    echo -e "  Amount:             ${amount} SilverCents"
+    echo ""
+    log_info "Transfer completed (peer-to-peer)"
+}
+
+cmd_help() {
+    cat <<EOF
+${MAGENTA}SilverCents Customer CLI${NC}
+
+${CYAN}USAGE:${NC}
+  $0 <command> [options]
+
+${CYAN}COMMANDS:${NC}
+  ${GREEN}init${NC} <customer_name>
+      Initialize a new customer account
+      
+  ${GREEN}balance${NC} <customer_name>
+      Check total SilverCents balance
+      
+  ${GREEN}list${NC} <customer_name> [vendor_pubkey]
+      List all received SilverCents (optionally filter by vendor)
+      
+  ${GREEN}redeem${NC} <customer_name> <vendor_pubkey> <amount> [prefer]
+      Request redemption for physical silver
+      prefer: "dimes" or "quarters" (default: dimes)
+      
+  ${GREEN}transfer${NC} <customer_name> <to_pubkey> <amount>
+      Transfer SilverCents to another customer
+      
+  ${GREEN}help${NC}
+      Show this help message
+
+${CYAN}EXAMPLES:${NC}
+  # Initialize customer
+  $0 init "Alice"
+  
+  # Check balance
+  $0 balance "Alice"
+  
+  # List all received SilverCents
+  $0 list "Alice"
+  
+  # Redeem 25 SilverCents for quarters
+  $0 redeem "Alice" 02abc... 25 quarters
+  
+  # Transfer 10 SilverCents to another customer
+  $0 transfer "Alice" 02def... 10
+
+${CYAN}NOTES:${NC}
+  - SilverCents are received from vendors
+  - 1 SilverCent = 1 silver dime equivalent
+  - Redemption requires vendor approval
+  - Transfers are peer-to-peer
+
+EOF
+}
+
+# ============================================================================
+# Main
+# ============================================================================
+
+main() {
+    local command=$1
+    shift
+    
+    case "${command}" in
+        init)
+            cmd_init "$@"
+            ;;
+        balance)
+            cmd_balance "$@"
+            ;;
+        list)
+            cmd_list "$@"
+            ;;
+        redeem)
+            cmd_redeem "$@"
+            ;;
+        transfer)
+            cmd_transfer "$@"
+            ;;
+        help|--help|-h|"")
+            cmd_help
+            ;;
+        *)
+            log_error "Unknown command: ${command}"
+            echo ""
+            cmd_help
+            exit 1
+            ;;
+    esac
+}
+
+main "$@"
diff --git a/demo/silvercents/silvercents_demo.sh b/demo/silvercents/silvercents_demo.sh
new file mode 100644
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--- /dev/null
+++ b/demo/silvercents/silvercents_demo.sh
@@ -0,0 +1,205 @@
+#!/bin/bash
+
+# ============================================================================
+# SilverCents Interactive Demo
+# ============================================================================
+# Automated demonstration of SilverCents in action
+# Scenario: Portland Farmers Market - Saturday Morning
+# ============================================================================
+
+# Load utilities
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+source "${SCRIPT_DIR}/silvercents_utils.sh"
+
+VENDOR_CLI="${SCRIPT_DIR}/silvercents_vendor.sh"
+CUSTOMER_CLI="${SCRIPT_DIR}/silvercents_customer.sh"
+
+# Demo configuration
+DEMO_SPEED=${DEMO_SPEED:-2}  # Seconds between steps
+
+# ============================================================================
+# Helper Functions
+# ============================================================================
+
+demo_step() {
+    local step_num=$1
+    local description=$2
+    
+    echo ""
+    log_header "Step ${step_num}: ${description}"
+    sleep ${DEMO_SPEED}
+}
+
+demo_pause() {
+    echo ""
+    log_info "Press Enter to continue..."
+    read
+}
+
+cleanup_demo() {
+    log_info "Cleaning up demo data..."
+    rm -f /tmp/silvercents_*.account
+    rm -f /tmp/silvercents_*.dat
+    log_success "Cleanup complete"
+}
+
+# ============================================================================
+# Main Demo
+# ============================================================================
+
+main() {
+    log_header "SilverCents Demo: Portland Farmers Market"
+    echo -e "${CYAN}Scenario:${NC} Saturday morning at the farmers market"
+    echo -e "${CYAN}Vendors:${NC} Bob's Farm Stand, Carol's Bakery, Dave's Coffee Cart"
+    echo -e "${CYAN}Customers:${NC} Alice (regular shopper), Eve (new customer)"
+    echo ""
+    
+    log_warning "This demo will create temporary accounts and simulate transactions"
+    echo ""
+    read -p "Press Enter to start the demo..."
+    
+    # Cleanup any existing demo data
+    cleanup_demo
+    
+    # ========================================================================
+    # PHASE 1: Vendor Setup
+    # ========================================================================
+    
+    demo_step 1 "Vendors Initialize Accounts"
+    
+    log_info "Bob's Farm Stand initializing..."
+    bash "${VENDOR_CLI}" init "Bob's Farm Stand" "Portland Farmers Market"
+    
+    log_info "Carol's Bakery initializing..."
+    bash "${VENDOR_CLI}" init "Carol's Bakery" "Portland Farmers Market"
+    
+    log_info "Dave's Coffee Cart initializing..."
+    bash "${VENDOR_CLI}" init "Dave's Coffee Cart" "Portland Farmers Market"
+    
+    # ========================================================================
+    # PHASE 2: Reserve Creation
+    # ========================================================================
+    
+    demo_step 2 "Vendors Create Silver-Backed Reserves"
+    
+    log_info "Bob creates reserve: 10 ERG + 1000 DexySilver tokens..."
+    bash "${VENDOR_CLI}" create-reserve "Bob's Farm Stand" 10 1000
+    
+    log_info "Carol creates reserve: 8 ERG + 800 DexySilver tokens..."
+    bash "${VENDOR_CLI}" create-reserve "Carol's Bakery" 8 800
+    
+    log_info "Dave creates reserve: 5 ERG + 500 DexySilver tokens..."
+    bash "${VENDOR_CLI}" create-reserve "Dave's Coffee Cart" 5 500
+    
+    # ========================================================================
+    # PHASE 3: Customer Setup
+    # ========================================================================
+    
+    demo_step 3 "Customers Initialize Accounts"
+    
+    log_info "Alice initializing..."
+    bash "${CUSTOMER_CLI}" init "Alice"
+    
+    log_info "Eve initializing..."
+    bash "${CUSTOMER_CLI}" init "Eve"
+    
+    # Get customer pubkeys
+    ALICE_PUBKEY=$(load_account "Alice")
+    EVE_PUBKEY=$(load_account "Eve")
+    
+    # ========================================================================
+    # PHASE 4: Transactions
+    # ========================================================================
+    
+    demo_step 4 "Alice Buys Vegetables from Bob (50 SilverCents)"
+    
+    bash "${VENDOR_CLI}" issue "Bob's Farm Stand" "${ALICE_PUBKEY}" 50 "Fresh tomatoes and lettuce"
+    
+    # Record note for Alice
+    BOB_PUBKEY=$(load_account "Bob's Farm Stand")
+    echo "${BOB_PUBKEY}|50000000000|$(date +%s)|Bob's Farm Stand|Fresh tomatoes and lettuce" >> "/tmp/silvercents_notes_Alice.dat"
+    
+    demo_step 5 "Alice Buys Bread from Carol (30 SilverCents)"
+    
+    bash "${VENDOR_CLI}" issue "Carol's Bakery" "${ALICE_PUBKEY}" 30 "Sourdough bread"
+    
+    # Record note for Alice
+    CAROL_PUBKEY=$(load_account "Carol's Bakery")
+    echo "${CAROL_PUBKEY}|30000000000|$(date +%s)|Carol's Bakery|Sourdough bread" >> "/tmp/silvercents_notes_Alice.dat"
+    
+    demo_step 6 "Eve Buys Coffee from Dave (15 SilverCents)"
+    
+    bash "${VENDOR_CLI}" issue "Dave's Coffee Cart" "${EVE_PUBKEY}" 15 "Latte and muffin"
+    
+    # Record note for Eve
+    DAVE_PUBKEY=$(load_account "Dave's Coffee Cart")
+    echo "${DAVE_PUBKEY}|15000000000|$(date +%s)|Dave's Coffee Cart|Latte and muffin" >> "/tmp/silvercents_notes_Eve.dat"
+    
+    demo_step 7 "Alice Transfers 10 SilverCents to Eve"
+    
+    bash "${CUSTOMER_CLI}" transfer "Alice" "${EVE_PUBKEY}" 10
+    
+    # Update balances (simplified)
+    echo "${BOB_PUBKEY}|10000000000|$(date +%s)|Alice (transfer)|P2P transfer" >> "/tmp/silvercents_notes_Eve.dat"
+    
+    demo_step 8 "Eve Redeems 20 SilverCents from Dave for Quarters"
+    
+    bash "${CUSTOMER_CLI}" redeem "Eve" "${DAVE_PUBKEY}" 20 quarters
+    bash "${VENDOR_CLI}" redeem "Dave's Coffee Cart" "${EVE_PUBKEY}" 20 quarters
+    
+    # ========================================================================
+    # PHASE 5: Final Status
+    # ========================================================================
+    
+    demo_step 9 "Final Status Check"
+    
+    log_header "Vendor Status Summary"
+    
+    echo -e "\n${GREEN}Bob's Farm Stand:${NC}"
+    bash "${VENDOR_CLI}" status "Bob's Farm Stand"
+    
+    echo -e "\n${GREEN}Carol's Bakery:${NC}"
+    bash "${VENDOR_CLI}" status "Carol's Bakery"
+    
+    echo -e "\n${GREEN}Dave's Coffee Cart:${NC}"
+    bash "${VENDOR_CLI}" status "Dave's Coffee Cart"
+    
+    log_header "Customer Balances"
+    
+    echo -e "\n${GREEN}Alice:${NC}"
+    bash "${CUSTOMER_CLI}" balance "Alice"
+    bash "${CUSTOMER_CLI}" list "Alice"
+    
+    echo -e "\n${GREEN}Eve:${NC}"
+    bash "${CUSTOMER_CLI}" balance "Eve"
+    bash "${CUSTOMER_CLI}" list "Eve"
+    
+    # ========================================================================
+    # Summary
+    # ========================================================================
+    
+    log_header "Demo Complete!"
+    
+    echo -e "${CYAN}Summary:${NC}"
+    echo -e "  ✓ 3 vendors created silver-backed reserves"
+    echo -e "  ✓ 2 customers initialized accounts"
+    echo -e "  ✓ 3 purchases made with SilverCents"
+    echo -e "  ✓ 1 peer-to-peer transfer completed"
+    echo -e "  ✓ 1 redemption for physical silver"
+    echo ""
+    echo -e "${GREEN}SilverCents successfully demonstrated!${NC}"
+    echo ""
+    
+    log_info "Demo data preserved in /tmp/silvercents_*"
+    log_info "Run './silvercents_demo.sh cleanup' to remove demo data"
+}
+
+# ============================================================================
+# Entry Point
+# ============================================================================
+
+if [ "$1" = "cleanup" ]; then
+    cleanup_demo
+else
+    main
+fi
diff --git a/demo/silvercents/silvercents_utils.sh b/demo/silvercents/silvercents_utils.sh
new file mode 100644
index 0000000..1df7949
--- /dev/null
+++ b/demo/silvercents/silvercents_utils.sh
@@ -0,0 +1,389 @@
+#!/bin/bash
+
+# ============================================================================
+# SilverCents Utilities
+# ============================================================================
+# Shared utility functions for SilverCents demo
+# Provides API interaction, calculations, and formatting helpers
+# ============================================================================
+
+# Configuration
+SERVER_URL="${SERVER_URL:-http://127.0.0.1:3048}"
+DEXYSILVER_VALUE_PER_TOKEN=1000000000  # 1 ERG per DexySilver token (mock value)
+SILVER_DIME_VALUE=100000000            # 0.1 ERG per silver dime equivalent
+MIN_COLLATERAL_RATIO=0.5               # 50% minimum (DexySilver backing)
+
+# Colors for output
+RED='\033[0;31m'
+GREEN='\033[0;32m'
+YELLOW='\033[1;33m'
+BLUE='\033[0;34m'
+MAGENTA='\033[0;35m'
+CYAN='\033[0;36m'
+NC='\033[0m' # No Color
+
+# ============================================================================
+# Logging Functions
+# ============================================================================
+
+log_info() {
+    echo -e "${BLUE}ℹ${NC} $1"
+}
+
+log_success() {
+    echo -e "${GREEN}✓${NC} $1"
+}
+
+log_warning() {
+    echo -e "${YELLOW}⚠${NC} $1"
+}
+
+log_error() {
+    echo -e "${RED}✗${NC} $1"
+}
+
+log_header() {
+    echo -e "\n${MAGENTA}═══════════════════════════════════════════════════════${NC}"
+    echo -e "${MAGENTA}  $1${NC}"
+    echo -e "${MAGENTA}═══════════════════════════════════════════════════════${NC}\n"
+}
+
+# ============================================================================
+# API Interaction Functions
+# ============================================================================
+
+api_create_note() {
+    local issuer_pubkey=$1
+    local recipient_pubkey=$2
+    local amount=$3
+    local timestamp=$4
+    local signature=$5
+    
+    curl -s -X POST "${SERVER_URL}/notes" \
+        -H "Content-Type: application/json" \
+        -d "{
+            \"issuer_pubkey\": \"${issuer_pubkey}\",
+            \"recipient_pubkey\": \"${recipient_pubkey}\",
+            \"amount\": ${amount},
+            \"timestamp\": ${timestamp},
+            \"signature\": \"${signature}\"
+        }"
+}
+
+api_get_notes() {
+    local issuer_pubkey=$1
+    local recipient_pubkey=$2
+    
+    curl -s "${SERVER_URL}/notes?issuer=${issuer_pubkey}&recipient=${recipient_pubkey}"
+}
+
+api_get_status() {
+    curl -s "${SERVER_URL}/status"
+}
+
+# ============================================================================
+# Silver Conversion Functions
+# ============================================================================
+
+# Convert nanoERG to SilverCents (1:1 with ERG for simplicity)
+nanoerg_to_silvercents() {
+    local nanoerg=$1
+    echo "scale=2; ${nanoerg} / 1000000000" | bc
+}
+
+# Convert SilverCents to silver dimes
+silvercents_to_dimes() {
+    local silvercents=$1
+    # 1 SilverCent = 1 silver dime equivalent
+    echo "${silvercents}"
+}
+
+# Convert dimes to quarters
+dimes_to_quarters() {
+    local dimes=$1
+    # 2.5 dimes = 1 quarter
+    echo "scale=1; ${dimes} / 2.5" | bc
+}
+
+# Get silver coin breakdown
+get_silver_breakdown() {
+    local silvercents=$1
+    local prefer=${2:-"dimes"}  # "dimes" or "quarters"
+    
+    local dimes=$(silvercents_to_dimes "${silvercents}")
+    local quarters=$(dimes_to_quarters "${dimes}")
+    
+    if [ "${prefer}" = "quarters" ]; then
+        local whole_quarters=$(echo "${quarters}" | cut -d'.' -f1)
+        local remaining_dimes=$(echo "scale=0; ${dimes} - (${whole_quarters} * 2.5)" | bc)
+        echo "${whole_quarters} quarters, ${remaining_dimes} dimes"
+    else
+        echo "${dimes} dimes"
+    fi
+}
+
+# ============================================================================
+# Collateralization Functions
+# ============================================================================
+
+# Calculate collateralization ratio
+calculate_collateral_ratio() {
+    local erg_collateral=$1
+    local dexysilver_tokens=$2
+    local issued_amount=$3
+    
+    # Total collateral value = ERG + (DexySilver tokens * value per token)
+    local dexysilver_value=$(echo "${dexysilver_tokens} * ${DEXYSILVER_VALUE_PER_TOKEN}" | bc)
+    local total_collateral=$(echo "${erg_collateral} + ${dexysilver_value}" | bc)
+    
+    if [ "${issued_amount}" -eq 0 ]; then
+        echo "999999.99"  # Infinite collateralization
+        return
+    fi
+    
+    # Ratio = total_collateral / issued_amount
+    echo "scale=2; ${total_collateral} / ${issued_amount}" | bc
+}
+
+# Get collateralization status
+get_collateral_status() {
+    local ratio=$1
+    
+    local ratio_int=$(echo "${ratio}" | cut -d'.' -f1)
+    
+    if [ "${ratio_int}" -ge 200 ]; then
+        echo "EXCELLENT"
+    elif [ "${ratio_int}" -ge 150 ]; then
+        echo "GOOD"
+    elif [ "${ratio_int}" -ge 100 ]; then
+        echo "ADEQUATE"
+    elif [ "${ratio_int}" -ge 80 ]; then
+        echo "WARNING"
+    elif [ "${ratio_int}" -ge 50 ]; then
+        echo "CRITICAL"
+    else
+        echo "UNDER-COLLATERALIZED"
+    fi
+}
+
+# Check if collateralization is acceptable
+is_collateral_acceptable() {
+    local ratio=$1
+    
+    # Convert to integer for comparison
+    local ratio_percent=$(echo "scale=0; ${ratio} * 100" | bc | cut -d'.' -f1)
+    local min_percent=$(echo "scale=0; ${MIN_COLLATERAL_RATIO} * 100" | bc | cut -d'.' -f1)
+    
+    [ "${ratio_percent}" -ge "${min_percent}" ]
+}
+
+# ============================================================================
+# Signature Functions (Mock for Demo)
+# ============================================================================
+
+generate_mock_signature() {
+    local issuer_pubkey=$1
+    local recipient_pubkey=$2
+    local amount=$3
+    local timestamp=$4
+    
+    # Generate deterministic mock signature
+    echo -n "${issuer_pubkey}${recipient_pubkey}${amount}${timestamp}" | sha256sum | cut -d' ' -f1
+}
+
+# ============================================================================
+# Formatting Functions
+# ============================================================================
+
+format_nanoerg() {
+    local nanoerg=$1
+    echo "scale=4; ${nanoerg} / 1000000000" | bc
+}
+
+format_pubkey() {
+    local pubkey=$1
+    echo "${pubkey:0:8}...${pubkey: -8}"
+}
+
+print_divider() {
+    echo -e "${CYAN}───────────────────────────────────────────────────────${NC}"
+}
+
+# ============================================================================
+# Account Management
+# ============================================================================
+
+# Generate mock keypair (for demo purposes)
+generate_keypair() {
+    local name=$1
+    
+    # Generate deterministic pubkey from name
+    local pubkey=$(echo -n "${name}" | sha256sum | cut -d' ' -f1)
+    # Add secp256k1 prefix (mock)
+    pubkey="02${pubkey:0:62}"
+    
+    echo "${pubkey}"
+}
+
+# Save account
+save_account() {
+    local name=$1
+    local pubkey=$2
+    local metadata=$3
+    
+    local account_file="/tmp/silvercents_${name}.account"
+    
+    cat > "${account_file}" <<EOF
+NAME=${name}
+PUBKEY=${pubkey}
+CREATED=$(date +%s)
+METADATA=${metadata}
+EOF
+    
+    echo "${account_file}"
+}
+
+# Load account
+load_account() {
+    local name=$1
+    local account_file="/tmp/silvercents_${name}.account"
+    
+    if [ ! -f "${account_file}" ]; then
+        return 1
+    fi
+    
+    source "${account_file}"
+    echo "${PUBKEY}"
+}
+
+# ============================================================================
+# Reserve Management
+# ============================================================================
+
+# Save reserve
+save_reserve() {
+    local vendor_name=$1
+    local pubkey=$2
+    local erg_collateral=$3
+    local dexysilver_tokens=$4
+    
+    local reserve_file="/tmp/silvercents_reserve_${vendor_name}.dat"
+    
+    cat > "${reserve_file}" <<EOF
+VENDOR_NAME=${vendor_name}
+PUBKEY=${pubkey}
+ERG_COLLATERAL=${erg_collateral}
+DEXYSILVER_TOKENS=${dexysilver_tokens}
+ISSUED_AMOUNT=0
+CREATED=$(date +%s)
+EOF
+    
+    echo "${reserve_file}"
+}
+
+# Load reserve
+load_reserve() {
+    local vendor_name=$1
+    local reserve_file="/tmp/silvercents_reserve_${vendor_name}.dat"
+    
+    if [ ! -f "${reserve_file}" ]; then
+        return 1
+    fi
+    
+    source "${reserve_file}"
+}
+
+# Update issued amount
+update_issued_amount() {
+    local vendor_name=$1
+    local new_amount=$2
+    
+    local reserve_file="/tmp/silvercents_reserve_${vendor_name}.dat"
+    
+    if [ ! -f "${reserve_file}" ]; then
+        return 1
+    fi
+    
+    # Read current values
+    source "${reserve_file}"
+    
+    # Update issued amount
+    cat > "${reserve_file}" <<EOF
+VENDOR_NAME=${VENDOR_NAME}
+PUBKEY=${PUBKEY}
+ERG_COLLATERAL=${ERG_COLLATERAL}
+DEXYSILVER_TOKENS=${DEXYSILVER_TOKENS}
+ISSUED_AMOUNT=${new_amount}
+CREATED=${CREATED}
+EOF
+}
+
+# ============================================================================
+# Display Functions
+# ============================================================================
+
+display_reserve_status() {
+    local vendor_name=$1
+    
+    load_reserve "${vendor_name}"
+    
+    local ratio=$(calculate_collateral_ratio "${ERG_COLLATERAL}" "${DEXYSILVER_TOKENS}" "${ISSUED_AMOUNT}")
+    local status=$(get_collateral_status "${ratio}")
+    local erg_display=$(format_nanoerg "${ERG_COLLATERAL}")
+    local issued_display=$(format_nanoerg "${ISSUED_AMOUNT}")
+    
+    echo -e "${CYAN}Reserve Status: ${vendor_name}${NC}"
+    print_divider
+    echo -e "  ERG Collateral:      ${erg_display} ERG"
+    echo -e "  DexySilver Tokens:   ${DEXYSILVER_TOKENS}"
+    echo -e "  Issued SilverCents:  ${issued_display} SC"
+    echo -e "  Collateral Ratio:    ${ratio}x"
+    echo -e "  Status:              ${status}"
+    print_divider
+}
+
+# ============================================================================
+# Validation Functions
+# ============================================================================
+
+validate_amount() {
+    local amount=$1
+    
+    if ! [[ "${amount}" =~ ^[0-9]+$ ]]; then
+        log_error "Invalid amount: ${amount}"
+        return 1
+    fi
+    
+    if [ "${amount}" -le 0 ]; then
+        log_error "Amount must be positive"
+        return 1
+    fi
+    
+    return 0
+}
+
+validate_pubkey() {
+    local pubkey=$1
+    
+    if [ ${#pubkey} -ne 66 ]; then
+        log_error "Invalid pubkey length: ${#pubkey} (expected 66)"
+        return 1
+    fi
+    
+    return 0
+}
+
+# ============================================================================
+# Export Functions
+# ============================================================================
+
+export -f log_info log_success log_warning log_error log_header
+export -f api_create_note api_get_notes api_get_status
+export -f nanoerg_to_silvercents silvercents_to_dimes dimes_to_quarters get_silver_breakdown
+export -f calculate_collateral_ratio get_collateral_status is_collateral_acceptable
+export -f generate_mock_signature
+export -f format_nanoerg format_pubkey print_divider
+export -f generate_keypair save_account load_account
+export -f save_reserve load_reserve update_issued_amount
+export -f display_reserve_status
+export -f validate_amount validate_pubkey
diff --git a/demo/silvercents/silvercents_vendor.sh b/demo/silvercents/silvercents_vendor.sh
new file mode 100644
index 0000000..3e65616
--- /dev/null
+++ b/demo/silvercents/silvercents_vendor.sh
@@ -0,0 +1,329 @@
+#!/bin/bash
+
+# ============================================================================
+# SilverCents Vendor CLI
+# ============================================================================
+# Command-line interface for vendors to manage silver-backed reserves
+# and issue SilverCents to customers
+# ============================================================================
+
+# Load utilities
+SCRIPT_DIR="$(cd "$(dirname "${BASH_SOURCE[0]}")" && pwd)"
+source "${SCRIPT_DIR}/silvercents_utils.sh"
+
+# ============================================================================
+# Commands
+# ============================================================================
+
+cmd_init() {
+    local vendor_name=$1
+    local location=${2:-"Unknown Location"}
+    
+    if [ -z "${vendor_name}" ]; then
+        log_error "Usage: $0 init <vendor_name> [location]"
+        exit 1
+    fi
+    
+    log_header "Initializing Vendor: ${vendor_name}"
+    
+    # Generate keypair
+    local pubkey=$(generate_keypair "${vendor_name}")
+    
+    # Save account
+    local account_file=$(save_account "${vendor_name}" "${pubkey}" "location=${location}")
+    
+    log_success "Vendor account created!"
+    echo -e "  Name:       ${GREEN}${vendor_name}${NC}"
+    echo -e "  Location:   ${location}"
+    echo -e "  Public Key: ${CYAN}${pubkey}${NC}"
+    echo -e "  Account:    ${account_file}"
+    echo ""
+    log_info "Next step: Create a reserve with 'create-reserve' command"
+}
+
+cmd_create_reserve() {
+    local vendor_name=$1
+    local erg_collateral=$2
+    local dexysilver_tokens=$3
+    
+    if [ -z "${vendor_name}" ] || [ -z "${erg_collateral}" ] || [ -z "${dexysilver_tokens}" ]; then
+        log_error "Usage: $0 create-reserve <vendor_name> <erg_collateral> <dexysilver_tokens>"
+        exit 1
+    fi
+    
+    # Load vendor account
+    local pubkey=$(load_account "${vendor_name}")
+    if [ $? -ne 0 ]; then
+        log_error "Vendor '${vendor_name}' not found. Run 'init' first."
+        exit 1
+    fi
+    
+    log_header "Creating Silver-Backed Reserve"
+    
+    # Convert ERG to nanoERG
+    local erg_nanoerg=$(echo "${erg_collateral} * 1000000000" | bc | cut -d'.' -f1)
+    
+    # Calculate total collateral value
+    local dexysilver_value=$(echo "${dexysilver_tokens} * ${DEXYSILVER_VALUE_PER_TOKEN}" | bc)
+    local total_value=$(echo "${erg_nanoerg} + ${dexysilver_value}" | bc)
+    
+    # Save reserve
+    save_reserve "${vendor_name}" "${pubkey}" "${erg_nanoerg}" "${dexysilver_tokens}"
+    
+    log_success "Reserve created successfully!"
+    echo -e "  Vendor:             ${GREEN}${vendor_name}${NC}"
+    echo -e "  ERG Collateral:     ${erg_collateral} ERG (${erg_nanoerg} nanoERG)"
+    echo -e "  DexySilver Tokens:  ${dexysilver_tokens}"
+    echo -e "  Total Value:        $(format_nanoerg ${total_value}) ERG"
+    echo -e "  Min Collateral:     50% (DexySilver backing)"
+    echo ""
+    log_info "Reserve is ready! You can now issue SilverCents."
+}
+
+cmd_issue() {
+    local vendor_name=$1
+    local customer_pubkey=$2
+    local amount=$3
+    local memo=${4:-""}
+    
+    if [ -z "${vendor_name}" ] || [ -z "${customer_pubkey}" ] || [ -z "${amount}" ]; then
+        log_error "Usage: $0 issue <vendor_name> <customer_pubkey> <amount> [memo]"
+        exit 1
+    fi
+    
+    # Validate amount
+    validate_amount "${amount}" || exit 1
+    validate_pubkey "${customer_pubkey}" || exit 1
+    
+    # Load vendor account
+    local vendor_pubkey=$(load_account "${vendor_name}")
+    if [ $? -ne 0 ]; then
+        log_error "Vendor '${vendor_name}' not found"
+        exit 1
+    fi
+    
+    # Load reserve
+    load_reserve "${vendor_name}"
+    if [ $? -ne 0 ]; then
+        log_error "Reserve not found for '${vendor_name}'. Create one first."
+        exit 1
+    fi
+    
+    log_header "Issuing SilverCents"
+    
+    # Convert amount to nanoERG
+    local amount_nanoerg=$(echo "${amount} * 1000000000" | bc | cut -d'.' -f1)
+    
+    # Calculate new issued amount
+    local new_issued=$(echo "${ISSUED_AMOUNT} + ${amount_nanoerg}" | bc)
+    
+    # Check collateralization
+    local ratio=$(calculate_collateral_ratio "${ERG_COLLATERAL}" "${DEXYSILVER_TOKENS}" "${new_issued}")
+    
+    if ! is_collateral_acceptable "${ratio}"; then
+        log_error "Insufficient collateralization!"
+        echo -e "  Current ratio: ${ratio}x"
+        echo -e "  Minimum required: ${MIN_COLLATERAL_RATIO}x"
+        exit 1
+    fi
+    
+    # Generate signature
+    local timestamp=$(date +%s)
+    local signature=$(generate_mock_signature "${vendor_pubkey}" "${customer_pubkey}" "${amount_nanoerg}" "${timestamp}")
+    
+    # Create note via API
+    log_info "Creating note..."
+    local response=$(api_create_note "${vendor_pubkey}" "${customer_pubkey}" "${amount_nanoerg}" "${timestamp}" "${signature}")
+    
+    # Update issued amount
+    update_issued_amount "${vendor_name}" "${new_issued}"
+    
+    # Get silver equivalent
+    local silver=$(get_silver_breakdown "${amount}")
+    
+    log_success "SilverCents issued successfully!"
+    echo -e "  Vendor:             ${GREEN}${vendor_name}${NC}"
+    echo -e "  Customer:           ${CYAN}$(format_pubkey ${customer_pubkey})${NC}"
+    echo -e "  Amount:             ${amount} SilverCents"
+    echo -e "  Silver Equivalent:  ${silver}"
+    if [ -n "${memo}" ]; then
+        echo -e "  Memo:               ${memo}"
+    fi
+    echo -e "  New Collateral:     ${ratio}x ($(get_collateral_status ${ratio}))"
+    echo ""
+}
+
+cmd_status() {
+    local vendor_name=$1
+    
+    if [ -z "${vendor_name}" ]; then
+        log_error "Usage: $0 status <vendor_name>"
+        exit 1
+    fi
+    
+    # Load reserve
+    load_reserve "${vendor_name}"
+    if [ $? -ne 0 ]; then
+        log_error "Reserve not found for '${vendor_name}'"
+        exit 1
+    fi
+    
+    log_header "Vendor Status: ${vendor_name}"
+    
+    display_reserve_status "${vendor_name}"
+    
+    # Calculate available credit
+    local ratio=$(calculate_collateral_ratio "${ERG_COLLATERAL}" "${DEXYSILVER_TOKENS}" "${ISSUED_AMOUNT}")
+    local total_collateral=$(echo "${ERG_COLLATERAL} + (${DEXYSILVER_TOKENS} * ${DEXYSILVER_VALUE_PER_TOKEN})" | bc)
+    local max_issuable=$(echo "${total_collateral} / ${MIN_COLLATERAL_RATIO}" | bc)
+    local available=$(echo "${max_issuable} - ${ISSUED_AMOUNT}" | bc)
+    
+    echo ""
+    echo -e "${CYAN}Available Credit${NC}"
+    print_divider
+    echo -e "  Max Issuable:        $(format_nanoerg ${max_issuable}) SC"
+    echo -e "  Already Issued:      $(format_nanoerg ${ISSUED_AMOUNT}) SC"
+    echo -e "  Available:           $(format_nanoerg ${available}) SC"
+    print_divider
+    echo ""
+}
+
+cmd_redeem() {
+    local vendor_name=$1
+    local customer_pubkey=$2
+    local amount=$3
+    local silver_type=${4:-"dimes"}
+    
+    if [ -z "${vendor_name}" ] || [ -z "${customer_pubkey}" ] || [ -z "${amount}" ]; then
+        log_error "Usage: $0 redeem <vendor_name> <customer_pubkey> <amount> [silver_type]"
+        exit 1
+    fi
+    
+    # Validate
+    validate_amount "${amount}" || exit 1
+    validate_pubkey "${customer_pubkey}" || exit 1
+    
+    # Load reserve
+    load_reserve "${vendor_name}"
+    if [ $? -ne 0 ]; then
+        log_error "Reserve not found for '${vendor_name}'"
+        exit 1
+    fi
+    
+    log_header "Processing Redemption"
+    
+    # Convert amount to nanoERG
+    local amount_nanoerg=$(echo "${amount} * 1000000000" | bc | cut -d'.' -f1)
+    
+    # Update issued amount (decrease)
+    local new_issued=$(echo "${ISSUED_AMOUNT} - ${amount_nanoerg}" | bc)
+    if [ "${new_issued}" -lt 0 ]; then
+        new_issued=0
+    fi
+    
+    update_issued_amount "${vendor_name}" "${new_issued}"
+    
+    # Calculate silver to provide
+    local silver=$(get_silver_breakdown "${amount}" "${silver_type}")
+    
+    log_success "Redemption processed!"
+    echo -e "  Vendor:             ${GREEN}${vendor_name}${NC}"
+    echo -e "  Customer:           ${CYAN}$(format_pubkey ${customer_pubkey})${NC}"
+    echo -e "  Amount Redeemed:    ${amount} SilverCents"
+    echo -e "  Silver to Provide:  ${silver}"
+    echo -e "  Remaining Debt:     $(format_nanoerg ${new_issued}) SC"
+    echo ""
+    log_info "Please provide ${silver} to customer"
+}
+
+cmd_help() {
+    cat <<EOF
+${MAGENTA}SilverCents Vendor CLI${NC}
+
+${CYAN}USAGE:${NC}
+  $0 <command> [options]
+
+${CYAN}COMMANDS:${NC}
+  ${GREEN}init${NC} <vendor_name> [location]
+      Initialize a new vendor account
+      
+  ${GREEN}create-reserve${NC} <vendor_name> <erg_collateral> <dexysilver_tokens>
+      Create a silver-backed reserve
+      Example: $0 create-reserve "Bob's Farm" 10 1000
+      
+  ${GREEN}issue${NC} <vendor_name> <customer_pubkey> <amount> [memo]
+      Issue SilverCents to a customer
+      Example: $0 issue "Bob's Farm" 02abc... 50 "Fresh vegetables"
+      
+  ${GREEN}status${NC} <vendor_name>
+      Check reserve status and available credit
+      
+  ${GREEN}redeem${NC} <vendor_name> <customer_pubkey> <amount> [silver_type]
+      Process redemption request from customer
+      silver_type: "dimes" or "quarters" (default: dimes)
+      
+  ${GREEN}help${NC}
+      Show this help message
+
+${CYAN}EXAMPLES:${NC}
+  # Initialize vendor
+  $0 init "Bob's Farm Stand" "Portland Farmers Market"
+  
+  # Create reserve with 10 ERG and 1000 DexySilver tokens
+  $0 create-reserve "Bob's Farm Stand" 10 1000
+  
+  # Issue 50 SilverCents to customer
+  $0 issue "Bob's Farm Stand" 02e58b5f... 50 "Tomatoes and lettuce"
+  
+  # Check status
+  $0 status "Bob's Farm Stand"
+  
+  # Process redemption for 25 SilverCents in quarters
+  $0 redeem "Bob's Farm Stand" 02e58b5f... 25 quarters
+
+${CYAN}NOTES:${NC}
+  - SilverCents require 50% DexySilver token backing
+  - 1 SilverCent = 1 silver dime equivalent
+  - 2.5 dimes = 1 quarter
+  - Collateralization is monitored automatically
+
+EOF
+}
+
+# ============================================================================
+# Main
+# ============================================================================
+
+main() {
+    local command=$1
+    shift
+    
+    case "${command}" in
+        init)
+            cmd_init "$@"
+            ;;
+        create-reserve)
+            cmd_create_reserve "$@"
+            ;;
+        issue)
+            cmd_issue "$@"
+            ;;
+        status)
+            cmd_status "$@"
+            ;;
+        redeem)
+            cmd_redeem "$@"
+            ;;
+        help|--help|-h|"")
+            cmd_help
+            ;;
+        *)
+            log_error "Unknown command: ${command}"
+            echo ""
+            cmd_help
+            exit 1
+            ;;
+    esac
+}
+
+main "$@"
diff --git a/docs/SILVERCENTS_ARCHITECTURE.md b/docs/SILVERCENTS_ARCHITECTURE.md
new file mode 100644
index 0000000..d979227
--- /dev/null
+++ b/docs/SILVERCENTS_ARCHITECTURE.md
@@ -0,0 +1,405 @@
+# SilverCents Architecture
+
+**Technical documentation for silver-backed offchain cash implementation**
+
+---
+
+## Overview
+
+SilverCents is a demonstration of the Basis protocol applied to local circular economies, using silver-backed reserves to issue offchain cash redeemable for physical silver coins.
+
+### Key Concepts
+
+- **Basis Protocol:** Offchain IOU tracking with on-chain reserves
+- **DexySilver:** Tokenized silver on Ergo blockchain
+- **Constitutional Silver:** Physical dimes and quarters (90% silver)
+- **Local Economy:** Farmers markets, food trucks, small businesses
+
+---
+
+## System Architecture
+
+```
+┌─────────────────────────────────────────────────────────────┐
+│                     SilverCents Ecosystem                    │
+└─────────────────────────────────────────────────────────────┘
+                            │
+        ┌───────────────────┼───────────────────┐
+        │                   │                   │
+┌───────▼────────┐  ┌──────▼───────┐  ┌────────▼────────┐
+│  Vendor CLI    │  │ Customer CLI │  │  Basis Tracker  │
+│  (Issuer)      │  │  (Receiver)  │  │  (Server)       │
+└───────┬────────┘  └──────┬───────┘  └────────┬────────┘
+        │                   │                   │
+        └───────────────────┼───────────────────┘
+                            │
+                ┌───────────▼────────────┐
+                │  On-Chain Reserve      │
+                │  - ERG collateral      │
+                │  - DexySilver tokens   │
+                │  - Redemption contract │
+                └────────────────────────┘
+```
+
+---
+
+## Components
+
+### 1. Vendor CLI (`silvercents_vendor.sh`)
+
+**Purpose:** Manage vendor operations
+
+**Responsibilities:**
+- Initialize vendor accounts
+- Create silver-backed reserves
+- Issue SilverCents to customers
+- Monitor collateralization
+- Process redemption requests
+
+**Data Storage:**
+- Account: `/tmp/silvercents_<name>.account`
+- Reserve: `/tmp/silvercents_reserve_<name>.dat`
+
+### 2. Customer CLI (`silvercents_customer.sh`)
+
+**Purpose:** Manage customer operations
+
+**Responsibilities:**
+- Initialize customer accounts
+- Track received SilverCents
+- Check balances
+- Request redemptions
+- Transfer to other customers
+
+**Data Storage:**
+- Account: `/tmp/silvercents_<name>.account`
+- Notes: `/tmp/silvercents_notes_<name>.dat`
+
+### 3. Utilities (`silvercents_utils.sh`)
+
+**Purpose:** Shared functionality
+
+**Functions:**
+- API interaction
+- Silver conversion calculations
+- Collateralization tracking
+- Signature generation (mock)
+- Formatting and display
+
+### 4. Interactive Demo (`silvercents_demo.sh`)
+
+**Purpose:** Automated demonstration
+
+**Scenario:** Portland Farmers Market with 3 vendors and 2 customers
+
+---
+
+## Data Structures
+
+### Account
+
+```bash
+NAME=<vendor_or_customer_name>
+PUBKEY=<secp256k1_public_key>
+CREATED=<unix_timestamp>
+METADATA=<additional_info>
+```
+
+### Reserve
+
+```bash
+VENDOR_NAME=<name>
+PUBKEY=<vendor_public_key>
+ERG_COLLATERAL=<nanoerg_amount>
+DEXYSILVER_TOKENS=<token_count>
+ISSUED_AMOUNT=<total_issued_nanoerg>
+CREATED=<unix_timestamp>
+```
+
+### Note
+
+```
+<vendor_pubkey>|<amount_nanoerg>|<timestamp>|<vendor_name>|<memo>
+```
+
+---
+
+## Collateralization Model
+
+### Formula
+
+```
+collateral_ratio = (ERG + DexySilver_value) / issued_amount
+
+where:
+  ERG = ERG collateral in nanoERG
+  DexySilver_value = tokens * value_per_token
+  issued_amount = total SilverCents issued
+```
+
+### Thresholds
+
+| Ratio | Status | Action |
+|-------|--------|--------|
+| ≥200% | EXCELLENT | Full issuance allowed |
+| 150-200% | GOOD | Normal operations |
+| 100-150% | ADEQUATE | Monitor closely |
+| 80-100% | WARNING | Reduce issuance |
+| 50-80% | CRITICAL | Add collateral |
+| <50% | UNDER-COLLATERALIZED | Issuance blocked |
+
+### Minimum Requirement
+
+**50% DexySilver backing** (per SilverCents specification)
+
+---
+
+## Silver Conversion
+
+### Equivalents
+
+```
+1 SilverCent = 1 silver dime equivalent
+1 silver dime = 0.1 troy oz silver (constitutional)
+2.5 dimes = 1 quarter
+10 dimes = 1 dollar in silver
+```
+
+### Conversion Functions
+
+```bash
+# SilverCents to dimes
+dimes = silvercents * 1
+
+# Dimes to quarters
+quarters = dimes / 2.5
+
+# Mixed breakdown
+50 SC = 50 dimes = 20 quarters
+25 SC = 25 dimes = 10 quarters
+```
+
+---
+
+## Workflows
+
+### Vendor Workflow
+
+```
+1. Initialize Account
+   └─> Generate keypair
+   └─> Save account file
+
+2. Create Reserve
+   └─> Specify ERG + DexySilver
+   └─> Calculate total collateral
+   └─> Save reserve file
+
+3. Issue SilverCents
+   └─> Validate customer pubkey
+   └─> Check collateralization
+   └─> Generate signature
+   └─> Create note via API
+   └─> Update issued amount
+
+4. Process Redemption
+   └─> Verify customer request
+   └─> Calculate silver to provide
+   └─> Update issued amount
+   └─> Provide physical silver
+```
+
+### Customer Workflow
+
+```
+1. Initialize Account
+   └─> Generate keypair
+   └─> Save account file
+
+2. Receive SilverCents
+   └─> Vendor issues note
+   └─> Record in notes file
+   └─> Update balance
+
+3. Check Balance
+   └─> Read all notes
+   └─> Sum amounts
+   └─> Display total
+
+4. Redeem for Silver
+   └─> Select vendor
+   └─> Specify amount
+   └─> Request redemption
+   └─> Receive physical silver
+
+5. Transfer to Peer
+   └─> Specify recipient
+   └─> Check balance
+   └─> Create transfer note
+```
+
+---
+
+## Security Model
+
+### Mock Implementation (Demo)
+
+**⚠️ This demo uses simplified security for demonstration purposes**
+
+- **Keypairs:** Deterministic from names (not cryptographically secure)
+- **Signatures:** SHA256 hashes (not real Schnorr signatures)
+- **Storage:** Temporary files (not persistent database)
+
+### Production Requirements
+
+For real deployment:
+
+1. **Proper Keypairs**
+   - Use secp256k1 curve
+   - Secure key storage
+   - Hardware wallet support
+
+2. **Real Signatures**
+   - Schnorr signatures
+   - Proper nonce generation
+   - Signature verification
+
+3. **Persistent Storage**
+   - Database (PostgreSQL/SQLite)
+   - Encrypted backups
+   - Access control
+
+4. **On-Chain Integration**
+   - Deploy Basis reserve contract
+   - Track blockchain events
+   - Handle redemptions on-chain
+
+---
+
+## API Integration
+
+### Basis Tracker API
+
+**Endpoints Used:**
+
+```
+POST /notes
+  Create new note
+  Body: {issuer_pubkey, recipient_pubkey, amount, timestamp, signature}
+
+GET /notes?issuer=<pk>&recipient=<pk>
+  Get notes for issuer-recipient pair
+
+GET /status
+  Get server status
+```
+
+### Future Enhancements
+
+- WebSocket for real-time updates
+- Proof generation for redemptions
+- Multi-tracker support
+- Reputation tracking
+
+---
+
+## Deployment Considerations
+
+### Local Testing
+
+```bash
+# Start Basis tracker server
+cargo run -p basis_server
+
+# Run SilverCents demo
+cd demo/silvercents
+./silvercents_demo.sh
+```
+
+### Production Deployment
+
+1. **Infrastructure**
+   - Ergo node (full or light)
+   - Basis tracker server
+   - Database (PostgreSQL)
+   - Web server (nginx)
+
+2. **Configuration**
+   - Tracker NFT ID
+   - Network (mainnet/testnet)
+   - Collateral ratios
+   - Fee structure
+
+3. **Monitoring**
+   - Collateralization alerts
+   - Redemption tracking
+   - Reserve balances
+   - System health
+
+---
+
+## Limitations
+
+### Current Demo
+
+- ✅ Demonstrates core concepts
+- ✅ Shows complete workflow
+- ✅ Educational value
+- ⚠️ Mock cryptography
+- ⚠️ Temporary storage
+- ⚠️ No blockchain integration
+
+### Future Work
+
+- [ ] Real cryptographic signatures
+- [ ] Persistent database
+- [ ] On-chain reserve deployment
+- [ ] DexySilver token integration
+- [ ] Web/mobile interface
+- [ ] Reputation system
+- [ ] Multi-vendor marketplace
+
+---
+
+## Performance
+
+### Scalability
+
+- **Vendors:** Unlimited (independent reserves)
+- **Customers:** Unlimited (lightweight accounts)
+- **Transactions:** Limited by tracker throughput
+- **Storage:** Linear growth with notes
+
+### Optimization Opportunities
+
+- Batch note creation
+- Proof caching
+- Database indexing
+- API rate limiting
+
+---
+
+## References
+
+1. **Basis Protocol**
+   - `chaincash/docs/basis.md`
+   - `basis-tracker/README.md`
+
+2. **SilverCents Specification**
+   - `chaincash/docs/silvercents.md`
+
+3. **Ergo Platform**
+   - https://ergoplatform.org
+   - https://docs.ergoplatform.com
+
+4. **Constitutional Silver**
+   - Pre-1965 US dimes and quarters
+   - 90% silver content
+   - Widely available and recognizable
+
+---
+
+**Status:** Demo Implementation  
+**Version:** 1.0.0  
+**Team:** Dev Engers (LNMIIT Hackathon 2025)  
+**Issue:** #2 - SilverCents Demo Implementation