I will leave most of the exiting new features to be praised by other fan-boys. Below are some the concerns I have after reading the proposal.
1. There is no more BTS burning. No more dividends
The BTS from fees are kind of recycled (put back in a ‘future spending fund’). The question is not anymore if Bitshares will ultimately has 2.5+1.5 bill BTS in existence, the question is only ‘when’. What we have given up is the dividend for the shareholders. I will not theoreticise here if such dividends is essential for the shares to have value and what is the impact of having/not having dividends.
Anyway this matter is easily fixable – by setting 3 way split instead of the proposed 2 way (80%/20% for referral program/ future spending’s fund), by just adding % to be burnt
2. The bond market is clearly not well thought and developed. It will take far more features to actually work and work well.
Why? – Put yourself in the lenders shoes. You will require collateral equal to the loan amount + interest+ some amount to guarantee for negative price movement of the collateral. So if you are lending bitUSD and accepting say BTS as collateral you will ask for 100% + interest + some% to insure yourself if BTS goes down during the term of the loan. So say 125% of the loan amount in BTS at the current BTS/bitUSD price.
Now to the shoes of the borrower. If you have to provide $125 in BTS to borrow $100 in bitUSD, and keeping in mind that nature of the asset that one can own on a blockchain, the circumstances in which such loan sounds like a real loan is very very small. It is not like owning a house and taking a loan to start a business. Most of the blockchain assets are of such a nature that simple selling them at current price is the best way to go. The cases that are left are not true loans but more akin to speculation that the collateral will go up in value during the loan term.
Some form of reputation system (credit score of kind) and or insurance/guaranty third party is clearly needed for true active bond market.
3. The referral system is killing the product [while probably being very good tool to sell it], or very actively working on it.
In order to provide decent referral bonuses ($80 per account seems to be the target) the transaction fees are $0.20 for free account (and $100 + $0.04 per transaction for lift time one). Do you really thing the customers will come flying to the system at those levels. [Leaving aside how astronomically high that is for each placed/canceled order on the DEX…not filled just placed]. Do you think customers will jump on the system with $0.20 per transaction when the competition is 10x less? I know a lot of marketer will try to sell it to them to get their $80 bucks, but how many will really use it 10x higher transaction cost (or be happy to pay $100 for the privilege to try it and enjoy normal fees)Recurring & Scheduled Payments
as well as the enormous amount of transactions (TPS
) that the system is promised to be able to handle are more than AWESOME but let’s address the problem areas and not pretend such do not exist.