This is just a thought-provoker. Currently we make bitBTC backed by BTS. I wonder what the broader crypto-community would think of a bitBTC backed by a reserve of BTC, where the transfer operations of the reserve are largely automatic and maybe subject to decentralised control by bitBTC owners? One that had zero financial risk associated with BitShares except as the designer and owner of the system? The bitBTC would then have:
- fast, guaranteed exchangeability with real BTC
- 10 second block times
- no feed price
- no collateral volatility
Even though we might argue that counterparty risk is introduced (and the goal should be to minimise that as far as possible), I think if people accept the security is still very high they may find it more understandable and attractive than one backed by BTS, at least at this early stage in BitShares' growth.
For BTS owners, a spread could be earned on transfers in and out of the reserve, and transaction fees from exchange markets, and this would not be limited by the market cap of BTS. For example, there's no reason why there could not be $100m of bitUSD earning $2m a year for BTS, even if the BTS valuation were lower than this.
There's been a lot of talk recently about ACCT, escrow functions, multi-sig, etc, some of which could be used. So I wondered, does this concept seem technically and legally feasible?
Just throwing this one out there.