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RE: Proposal to reward bitassets holders with interest!
The first plan before BitShares started was that the shorters will pay for borrowing bitUSD 5%, but not realized. Most probably there would be no shorters in such case.
Maybe part of transaction fees could be divided to holders of bitassets, but the fees are low and I can not evaluate if the algorithm would not be too complex.
The question of interest earned is on the table from time to time, but there is no solution and I guess never be. Bond marker is other question. That is not the same.
I do not think using OPEN.xxx is safe, because it is out of the blockchain, dependend on thirt party.
Thank you for your contribution.
I agree that bond market is another question. In the meantime instead of just waiting and looking our bts investment falling day by day for the last 2 years I think something needs to be done.
bitshares market cap will never increase if the supply of bitassets doesn't increase as well. I don't know if you guys remember but when we had $1 mil bitassets supply, bitshares market cap reached $70-$85 mil range. Therefore we need to find incentives for people not only to create bitassets but also to hold bitassets. One incentive is a high deposit interest.
I don't understand why buying $40k - $80k for 1 year Open.xxx bit assets is considered a risk..Seriously?? Do you think that if Open.ledger runs insolvent bitshares will run into trouble for losing $40-$80k open.xxx assets using $10 mil - $20 mil bts balance from the reserve pool? I am pretty sure that in case of Open.ledger insolvency bts will run into much more trouble since a lot of people hold much more money than$80k in Open.xxx assets in their openledger wallet. $40 - $80k is insignificant people!! And in reality doing it steadily when bts increase in value we will not even need to use $10 mil bts but much less.
But with only $80k one off purchase (which I don't even propose that but steadily within a year) you can give 20% deposit interest to bitasset holders! We are talking about $80k value in Open.xxx assets divirsified to 1,000 bitassets accounts holders...Not only this is not a risk but rather a hedge in case the bitasset peg is not 100% pegged after 1 year. Those people will have their bitassets and 20% of this value will be covered in the form of interest by an external asset over the one year period.
Don't you realize the marketing advantage of something like that? Hold bitshares and earn high interest on deposit. If bitasset supply goes from $400k to $800k earn 10% etc..
Why there will be no shorters? If the demand for bitassets increase (which will definitely increase if you reward them with high interest) then more shorters will come into play to create those bitassets...I really don't follow your logic here.
Correlation does not imply causation ;)
anything above 10% looks scammish (even 10% is too much)
As a wrote 5% was intended and it was a good idea. I am sure you remember it liondani.
5% is perfect for so many reasons!
Maybe I should emphasize that with a daily budget from the pool of 25,000 bts we can give 10% interest and with a daily budget of 50,000 we can give 20% interest on bitasset holders. We can always adjust those numbers in the pool reserve benefit once the supply of bitassets increases. Think of this like that since there are not many bit.assets into existence yet , the interest you receive is higher since many people may see this as risky and once the supply of bit.assets increases the interest earned gradually decreases..
Also not everyone want to receive bit.assets. Imagine marketting wise saying to people that if they convert their btc to bitbtc they will receive interest in the form of Open.btc which is very easily and converted back 1:1 to polo.btc or bitstamp .btc etc and also the bit.btc historically is above the peg by 5% - 10% or more and that by default they can always convert their bit.btc back to the feed price within 24 hours if they want and convert it back to polo.btc or whatever btc they want..
I do not really think Openledger will be insolvent (at least I hope it is better secured than other exchanges hacked). Anyway it would be big problem for BitShares as you wrote. I just make a remark, that it is a out of the blockchain solution and other BitShares shareholder may have problem with it.
The market capitalization of BitShares is simply shame and I am sure it is all about the problems with voting for development. You know that there is oposition against any spending and it is (IMO)crippling advance.
Regarding the shorters it is misunderstanding. I wrote that the first plan before BitShares started was that the shorters will pay for borrowing bitUSD 5% and paying interest for the right to short and bear the risk would be to much. But it does not exist now.
Why not make the interest in BTS??