This is a call to action to upgrade and reposition Bitshares PTS as a currency-DAC & sharedrop instrument. The new Bitshares superDAC (BTS) will be changing in some ways that make it better suited for adoption as a niche application (user-issued asset exchange) and far less suited to gain adoption as a global currency. The superDAC has the following properties that make it suboptimal for use as a currency:
* The threshold for inflation is too low. By allowing inflation of up to 8% perpetually in the protocol, you end up with a situation where large stakeholders are able to "write their own paycheck" for lack of a better term. The biggest stakeholders in the superDAC will be I3, and for all intents and purposes they will be setting their own pay. It would take an almost impossible amount of stake (if you consider the avg participation rate) to "disagree" with their payrate and to vote them out completely. Any currency (even Bitcoin) can be modified for inflation. The difference is that inflation is not baked into the protocol, and would therefore require a far greater "stake" to implement (with a hard fork). Bitshares has ignored one of the main principles of crypto community: that scarcity should be (almost) inviolable.
* The second weakness of the superDAC is distribution. AGS distribution has already alienated some Bitcoin purists who are adamantly against "IPO coins". I don't necessarily agree with their philosophy, but there is a large segment of crypto users who will only invest in coins that have no IPO, no premine, and ONLY PoW distribution. For all its flaws, I agree that PoW distribute has one huge advantage over IPO - it is trustless and provable (i.e., that the devs did not “donate” any coins to themselves during distro).
* The last weakness of the superDAC is a logical extension of the "DAC analogy". The killer app in the crypto-space has always been and will always be currency. Running a DAC like a business will result in a more agile and adaptive token, but these benefits come at the expense of the type of stability that is required for a currency application. In other words, the coin that wins adoption as a widespread currency will have properties that are hugely different from those of a "digital corporation".
In order to build a successful currency-DAC, we should run our "business" with the aim of positioning ourselves as the best currency and store of value (the killer app). And to be a good store of value, any coin that maintains the sanctity of scarce supply at the protocol layer, will be leaps and bounds ahead of the competition. The crypto-space is searching for a token that has attributes that are well suited for this application, and Bitshares should have a horse in this race.The Future
The distribution of value among the top competitors will probably result in something similar to that of credit cards today, with a couple of coins taking a large majority of the market share and a long tail of competitors directed to increasingly niche applications. The coin that wins this battle will likely not be Bitcoin (primarily due to the pitfalls of PoW) and it will not be the coin with the most advanced features (see Nxt). Any coin that becomes a global currency must be appealing to governments and serious investors and must be perceived as (i) fairly distributed, (ii) scarce (non-inflationary), (iii) efficient (DPOS), and (iv) secure
. Any feature built on top of this coin cannot be done at the expense of these 4 things.Why Bitshares PTS?
* PTS is an existing Bitshares product with a wide network of support.
* Despite all of its shortcomings, PoW is the fairest method of distribution that is currently available. PTS has had 100% PoW distribution over 1 year.
* DPOS is hands down the best consensus algorithm, and it should be attempted in a pure and agnostic token with strong scarcity and fair distribution.
* We can piggyback on the work of I3 developers without being bound to the potential pitfalls of their business strategy.
* The purity of PTS distribution also makes it an ideal candidate for sharedropping by other DACs.What Now?
* We are assembling a technical team. Contact me if you can help in any way (running delegates, testing, etc).
* Brand deck, website, and marketing materials are in the works.
* We need contacts at the major exchanges and a coordinated effort to promote our message.
Please DM me if you’d like to contribute in any way.
Edit: modified logo