Deflating BTS through IPOs and sharedrops

[xeroc]

Have you read
http://bytemaster.bitshares.org/article/2014/12/26/Stop-the-Crowd-Sales-Long-Live-Crowd-Funding/

All your scenarios contain "burning" .. why don't you consider selling a token on the dex instead?

[fluxer555]

In the past I have proposed a deflationary development model in response to the the introduction of inflation on the BTS chain. I have since realized that this model is flawed since it does not actually give the developer fungible funds for their development. (I'll elaborate if anybody wants me to, however I'm going to refrain in sake of brevity).

I have another idea, which is also deflationary to BTS, but adds an interesting twist. It can be done in both IPO and sharedrop forms, or a combination.

The idea can be most easily described by defining different distributions for the new AwesomeCoin:

Scenario 0 -- Standard Proof of Burn (included for completeness)
100% to BTS burners who burn with the memo "AWESOMECOIN"

Scenario 1 -- Sharedrop
50% to BTS holders
50% to BTS burners who burn with the memo "AWESOMECOIN"

Scenario 2 -- Fundraiser
50% to donators of BTS
50% to BTS burners who burn with the memo "AWESOMECOIN"

Scenario 3 -- Fundraiser, hardstyle
45% or 55% to donators of BTS
45% or 55% to BTS burners who burn with the memo "AWESOMECOIN"
Whichever group is larger gets the larger percentage

Scenario 4 -- Sharedrop / Fundraiser combo
20% to BTS holders
40% to BTS donators
40% to BTS burners who burn with the memo "AWESOMECOIN"

Scenario 5 -- Sharedrop / Fundraiser combo, hardstyle
20% to BTS holders
35% or 45% to donators of BTS
35% or 45% to BTS burners who burn with the memo "AWESOMECOIN"
Whichever group is larger gets the larger percentage

"This is madness! Why on earth would anyone want to do this?"

For one, there currently exists a problem that the sharedrop pump/dump cycle creates a predictable trading environment which can be abused by shorters / BitUSD holders. By having part of the sharedrop include deflation of the currency, this can help soften or eliminate the 'dump' part of the cycle.

Additionally, having a dual drop system creates incentive for each side to be equal, which constantly drives the lesser side upward. As anyone who participated in the AngelShares drive knows, this had an adverse effect on the PTS price because it became fixed to the equivalent conversion of the daily BTC donations. With this, however, there is never any sell pressure on BTS or anything else, but you get the same affect of this pushing both sides up.

I can already hear you: "Why burn, if they could have just donated that to the fundraiser too?"
I'm not going to pretend to know, but it would be an interesting experiment to see if the total donated to the development fund would actually be driven higher due to the competition with the burned fund.

Of course, another added benefit from this is that the BTS supply deflates. This could be a consideration if the project is synergetic with BTS, and can be considered a kind of risk mitigation for the project if it is not successful.

Thoughts and comments appreciated.