I love this!!
Libby is awesome but there are so many ways it could be improved. There's also Hoopla, which does already pay by the checkout, but the rates for indie authors are tiny (like 35 cents a check-out) and you have to go through an aggregator to get there, just like Overdrive. I make all my independently published books available to Hoopla and Overdrive (among other borrowing platforms), but only a fraction are actually available at any given library, which is frustrating for both my readers and me. And there's nothing you can do about it except hope a library invests in your title (via Overdrive) or Hoople lists your title, which is very hit or miss.
Thank you for this vision.