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Offline Rune

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So as far as I understand it, we will most certainly see natural yield of around 5%. I think it would be a huge marketing advantage if we decided to subsidize it to always be at least 5% for the three main currency bitAssets (USD, EUR, CNY), because that means we can write that as the minimum yield in promotional material.

5% isn't an outrageous amount of interest, but it is significant in this era of negative interest rates. I think being able to use concrete numbers will make it so much easier to make mainstream people curious. If it becomes trusted enough, I could see this becoming viral knowledge between cautious savers especially in China, with people rushing to put their life savings into it if they hear about it from people they already trust - the Chinese are fond of getting on trends about what the safest longterm investments are. Right now we're seeing a housing bubble pop, and it would be the perfect time for them to be introduced to a new safe investment.

Offline bytemaster

Funding this yield with dilution is an expensive proposition. 
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Offline Ander

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If we were to dilute in order to pay a higher interest rate, that would make Bitshares look like a scam to me.  A ponzi, taking the funds of new investors (those who bought diluted shares) and paying it as interest to old investors.

This is exactly what we dont want to do, imo.

We need to increase real, legitimate, sustainable demand for bitUSD.  Which is hopefully what the coming marketing campaign will do.
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Offline matt608

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If we were to dilute in order to pay a higher interest rate, that would make Bitshares look like a scam to me.  A ponzi, taking the funds of new investors (those who bought diluted shares) and paying it as interest to old investors.

This is exactly what we dont want to do, imo.

We need to increase real, legitimate, sustainable demand for bitUSD.  Which is hopefully what the coming marketing campaign will do.

 +5%

There's no need for such drastic measures, the big guns haven't even been fired yet.

Offline sschechter

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If we were to dilute in order to pay a higher interest rate, that would make Bitshares look like a scam to me.  A ponzi, taking the funds of new investors (those who bought diluted shares) and paying it as interest to old investors.

This is exactly what we dont want to do, imo.

We need to increase real, legitimate, sustainable demand for bitUSD.  Which is hopefully what the coming marketing campaign will do.
Very NuBits like +5%
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Offline bytemaster

On that note we have been developing a marketing strategy that does not depend upon dilution to implement.   

For the most part we will aim to reserve dilution for development efforts that have visible ROI rather than marketing efforts that are controversial.   
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Offline Pheonike

I would say cap it at 5% and put the rest in reserve or dev fund.

Offline sschechter

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So as far as I understand it, we will most certainly see natural yield of around 5%. I think it would be a huge marketing advantage if we decided to subsidize it to always be at least 5% for the three main currency bitAssets (USD, EUR, CNY), because that means we can write that as the minimum yield in promotional material.

It is also an unfair and deceptive practice if you don't actually tell the user where the 5% is coming from. Scam territory
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Offline sschechter

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On that note we have been developing a marketing strategy that does not depend upon dilution to implement.   

For the most part we will aim to reserve dilution for development efforts that have visible ROI rather than marketing efforts that are controversial.

 +5%
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Offline tonyk

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So as far as I understand it, we will most certainly see natural yield of around 5%. I think it would be a huge marketing advantage if we decided to subsidize it to always be at least 5% for the three main currency bitAssets (USD, EUR, CNY), because that means we can write that as the minimum yield in promotional material.

5% isn't an outrageous amount of interest, but it is significant in this era of negative interest rates. I think being able to use concrete numbers will make it so much easier to make mainstream people curious. If it becomes trusted enough, I could see this becoming viral knowledge between cautious savers especially in China, with people rushing to put their life savings into it if they hear about it from people they already trust - the Chinese are fond of getting on trends about what the safest longterm investments are. Right now we're seeing a housing bubble pop, and it would be the perfect time for them to be introduced to a new safe investment.

To put is mildly... this is nuts!

« Last Edit: October 28, 2014, 07:37:23 PM by tonyk »
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline luckybit

If we were to dilute in order to pay a higher interest rate, that would make Bitshares look like a scam to me.  A ponzi, taking the funds of new investors (those who bought diluted shares) and paying it as interest to old investors.

This is exactly what we dont want to do, imo.

We need to increase real, legitimate, sustainable demand for bitUSD.  Which is hopefully what the coming marketing campaign will do.

I agree. If we start doing this I would pull out and so would a lot of others. Yield is important but it's not like dilution itself is even popular within our own community and to do it specifically to provide yield is not worth it.
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Offline xeroc

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I agree. If we start doing this I would pull out and so would a lot of others. Yield is important but it's not like dilution itself is even popular within our own community and to do it specifically to provide yield is not worth it.

Yield = nice to have return as a stakeholder in the asset .. nothing more!

I vote for no (further) dilution
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Offline bytemaster

Just to be clear... I do not support this proposal in the slightest.
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Offline tonyk

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Just to be clear... I do not support this proposal in the slightest.

And I am pretty sure nobody expected you to be supporting it.


On that note we have been developing a marketing strategy that does not depend upon dilution to implement.   

For the most part we will aim to reserve dilution for development efforts that have visible ROI rather than marketing efforts that are controversial.   

Wow. Dare to share a bit tiny little more?
Lack of arbitrage is the problem, isn't it. And this 'should' solves it.

Offline Rune

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What I get from this is that yield is not going to be around 5% then. Then what will it be, 2%? Then we should put that as the subsidy floor and advertise that. Any number is better than no number (which will always be assumed to be 0.001% like all other banks).

 

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