UPDATE: Canceled. Not enough approval from stakeholders.BitShares CryptoeXchange (working name)
BTSCX will provide a gateway for cryptocurrencies to a decentralized storage, backing assets tradable on the BTS network (comparable to NXT's SuperNET, but without static main nodes)
For a coin to be added there need to be at least three individuals, so called signers, who hold keys to multisig addresses to store coins and assets. Two of those keys are required for a transaction to get accepted in the blockchain. The signers watch each other and react to suspicious behaviour by locking out the malicious signer, and if possible replacing him.
A multisig address can be created with a variable number of signers and required signatures, so it can be raised per-coin when more individuals applied for signing and get voted in. The number of signers should be in some way proportional to the total deposited value for (obvious) security reasons.
When a coin is added (enough signers available + successful community vote), an asset representing that coin is issued by the signers (also multisig protected), which will be given out in return for deposited coins. The deposits are immediately sent to the multisig storage address.
Returning the asset to the issuer triggers a withdrawal of the respective amount of coins.
The gateway can sustain itself through fees taken from deposits and withdrawals.
The client will support adding new coins and applying as a signer for an added coin as well as voting, trading and community functions.
Like Graphene, the UI will be standalone and can work with remote BTSCX, BTS and coin nodes.
By connecting it to a local coin wallet it will support trading directly out of or into that wallet.
A control asset will be issued, which gives the community the possibility to vote on every variable that may be set, per coin.
Those variables are (list not necessarily complete):
- coins to add
- x-of-y multisig
- offline/dropout tolerance
- distribution of fees between asset holders, signers, and burning
80% of this asset will be given to the community, 20% will stay with me to be distributed amongst the people helping to create the gateway.
The team consists of 3 persons so far (2 coders, 1 designer). As a rough estimation it'll require about 6 months and at least 30k USD to develop a working product. This would only cover a very basic version though. Adding more features like a trollbox or margin trading will boost that up quite a bit, and if we want to include marketing and further development, even 300k USD could easily be spent in a year. There won't be a company in Switzerland though, promised!
There are 6 proposed workers, amounting to 60k BTS/day each, running for three months (Dec/Jan/Feb). With this setup and current prices having all 6 voted in for 1 month, or 2 for three months, secures the minimum funding. Donations of BTC, BTS and BitUSD will be accepted when the initial 30k USD target is met through those workers, or during February if it's possible to fill an eventual gap.
In March 2016 the value in USD for everything that came in will be calculated, and 80% of the control asset will be given out proportionally, sharedropping the worker income's part on BTS accounts. Details on that sharedrop need to be discussed, I'm not sure if a proportional drop on everyone makes sense. Whoever holds that asset should participate in the voting.