Gold 2.0 vs. Shares 2.0: Lets Talk Metaphors

[Method-X]

Here's another way to look at it: Bitcoin uses inflation to kickstart security. Bitshares can use inflation to kickstart viral growth. Since a DPOS blockchain is extremely secure and costs next to nothing to maintain, funding viral growth should be a no brainer.

[kisa]

Delegated capital allocation.

DCA delegates have the capability to allocate capital to fund projects that will be PROFITABLE for shareholders. It will never be possible for a delegate to simply inflate and steal like we see governments do, because of the total transparency of the system and the ability to instantly kick bad delegates out.

+5%

[Ander]

a) Satoshi Nakamoto created Bitcoin with the intention of it being decentralized digital gold. Gold 2.0.

b) Daniel Larimer created Bitshares with the intention of it being a decentralized autonomous company. Shares 2.0.

Deflation (or controlled inflation) makes sense if you're trying to be a decentralized global currency like Bitcoin. But what if you're trying to reimagine what a company is?

FACT: "Regular" centralized companies issue new shares to facilitate growth all the time. For a Decentralized Autonomous Company to compete with a centralized corporation, it MUST have the ability to issue new shares or it can never hope to compete. If it comes down to a centralized corporation vs. a DAC, the centralized corp will always win because it has the ability to fund its own growth.

In Dans latest proposal, shareholders must reach a majority consensus through voting before new shares can be issued. This makes complete sense if we want DACs to be self funding and competitive with real world corporations. If we as a community don't get behind the idea of delegated share issuance, the whole concept of a DAC is dead on arrival.

Let's completely embrace the share 2.0 metaphor and get on with changing the world.

+5%

Excellent analogy!

[Rune]

Delegated capital allocation.

DCA delegates have the capability to allocate capital to fund projects that will be PROFITABLE for shareholders. It will never be possible for a delegate to simply inflate and steal like we see governments do, because of the total transparency of the system and the ability to instantly kick bad delegates out.

[CLains]

 +5%

[kisa]

I'm not actually against dilution I just don't see why we'd do it so early on. I think it's fine as long as there are enough BitAssets so people can park their buying power in them prior to the dilution.

To merge BTSX+VOTE+AGS+PTS into BTS so that is it a stronger competitor

Bitshares United BTSU

[roadscape]

I'm not actually against dilution I just don't see why we'd do it so early on. I think it's fine as long as there are enough BitAssets so people can park their buying power in them prior to the dilution.

To merge BTSX+VOTE+AGS+PTS into BTS so that is it a stronger competitor

[luckybit]

I do see shares as having more in common with fiat than say, gold. Most people against dilution have that view because they're stuck in the coin paradigm. Deflationary shares don't make a whole lot of sense because it drastically limits growth. I guess the question is what's the difference between a company's shares, fiat currency and a deflationary commodity like gold.

I'm not actually against dilution I just don't see why we'd do it so early on. I think it's fine as long as there are enough BitAssets so people can park their buying power in them prior to the dilution.

But dilution is going to hurt people who have the least understanding which means it's actually risky to do it. It might be easier to raise transaction fees, increase the burn rate, or just use transaction fees to pay for this. Dilution should be the last resort and when there is dilution it's not like the board of directors can do this and not risk their jobs.

When it's a centralized corporation and the chairman of the board dilutes shareholders then the shareholders hold them accountable. If their plans do not increase buying power for shareholders, if they do not increase the market cap or the marketing campaign doesn't work, then what? Do we vote them out if they fail?

In a centralized corporation there is a consequence for failing but how does it work in a DAC?

[kisa]

capital infusion via delegated issuance of complementary equity
raising equity via democratic emission of new shares  8)

[roadscape]

I had a similar discussion with others .. What should this dilution/inflation be called?  Definitely not inflation for obvious reasons.  So the 2 ideas put up were

dilution
stake issuance

Thoughts on that ?  Issuance is a weird word.  "Issuing stake" ?

BM was asked this exact question in the mumble, but I forgot his response. I think it included "capital infusion"

[gamey]

I am not sure.. Share 2.0  I like it on some level, but not sold.  Share is ambiguous and means something else by default.  You've removed any context.  However I am not sure this type of confusion is bad ?

I had a similar discussion with others .. What should this dilution/inflation be called?  Definitely not inflation for obvious reasons.  So the 2 ideas put up were

dilution
stake issuance

Thoughts on that ?  Issuance is a weird word.  "Issuing stake" ?

Delegated share issuance.
Democratic share issuance.

I can't think of an alternative to the word issuance. Issuance is the best word in my opinion.

http://www.thesaurus.com/browse/issuance?s=t

I do like those.  If this happens, content producers will definitely need to decide on something.

I think issuance is weird, because it isn't a word that I think a non-native speaker would necessarily know.  It closely resembles issue though so maybe I'm wrong.

[Method-X]

I am not sure.. Share 2.0  I like it on some level, but not sold.  Share is ambiguous and means something else by default.  You've removed any context.  However I am not sure this type of confusion is bad ?

I had a similar discussion with others .. What should this dilution/inflation be called?  Definitely not inflation for obvious reasons.  So the 2 ideas put up were

dilution
stake issuance

Thoughts on that ?  Issuance is a weird word.  "Issuing stake" ?

Delegated share issuance.
Democratic share issuance.

I can't think of an alternative to the word issuance. Issuance is the best word in my opinion.

http://www.thesaurus.com/browse/issuance?s=t

[gamey]

I am not sure.. Share 2.0  I like it on some level, but not sold.  Share is ambiguous and means something else by default.  You've removed any context.  However I am not sure this type of confusion is bad ?

I had a similar discussion with others .. What should this dilution/inflation be called?  Definitely not inflation for obvious reasons.  So the 2 ideas put up were

dilution
stake issuance

Thoughts on that ?  Issuance is a weird word.  "Issuing stake" ?

[xeroc]

But since it's a DAC, anybody can come up with a dilution proposal right?
It doesn't necessarily have to be Invictus issuing new shares, as long as they get enough votes.

From what I know this should be the case ... and better will be

[vegolino]

This might be one for the stupid questions thread.

But since it's a DAC, anybody can come up with a dilution proposal right?
It doesn't necessarily have to be Invictus issuing new shares, as long as they get enough votes.

Yes