Author Topic: [POLL] Should the committee use a separate account to trade?  (Read 1126 times)

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Offline puppies

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[POLL] Should the committee use a separate account to trade?
« on: January 28, 2016, 07:12:21 pm »
The committee has withdrawn the fees collected by the fee pools for our committee owned assets.  We have not yet sold these bitassets into the market.  This is the first of a number of polls to help determine the best way to accomplish this. 

The issue we have run into is that it is impossible to do anything with the committee account in real time.  Even if we got 51% of the committee on at the same time there is a 1 hour review period required for all committee proposals.  Realistically in order to get 51% of the committee to vote on something would take more like at least 12 hours.  The price of these bitassets can change fast, and the price which we set could be completely inappropriate by the time the proposal passes.  This is even more of a risk if we need to cancel a market order.  I think that using the committee account risks causing more damage to the peg than good.

To combat this I have created a new account http://cryptofresh.com/u/committee-trade It has owner permissions set to the committee, so the committee still has control of the account.  The active authority is currently set to myself, bhuz, abit, and xeroc.  abit and xeroc have not agreed to join in, I added them because I don't think they will mind.  Bhuz volunteered to help.  It is currently set as a 2 of 4 multi sig.  Because the committee account owns this account the committee can adjust the active authorities as it sees fit. 

I propose that we iron out exactly who will have active authority on this account, set the permissions properly, and transfer the bitassets held by the committee-account to committee-trade.  Committee-trade can then sell these assets in real time.  We could even devise a simple bot that will set sell walls at a certain percentage over feed price.

The committee currently owns

USD   6,910
EUR   10.24
GOLD   0.00381
SILVER   3.09
CNY   7,870
BTC   0.476

The consensus from earlier conversations was that we would sell these assets into their BTS market at a certain percentage above the peg.  There will be a separate poll to determine the rate above peg which we should target.  What we should do with the BTS received from these sales, is also a separate conversation.  I would like to keep this conversation about whether or not we should use the committee-trade account or the committee-account account to process these sales.  Also if anyone with good knowledge of the cli_wallet wants to step and help by becoming a multi sig active auth please let us know.
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Offline Akado

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #1 on: January 28, 2016, 08:09:45 pm »
Well shouldn't the entire committee participate on that account? And wouldn't that originate the exact same problem?

Can't the committee:

- Sell assets
- Get BTS from the sell
- Use that BTS as collateral to create more assets
- Sell those assets
- Get BTS from the sell
- repeat until there are no BitShares since you need 200% collateral, meaning at each time you create half or one third of the assets.

Would this be useful? Placing more bitUSD/bitBTC and bitCNY in circulation?
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Offline puppies

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #2 on: January 28, 2016, 08:38:01 pm »
The entire committee could participate.  I don't think they want to.  Bhuz was the only volunteer.  Unless we use a bot coordination across all of our timezones would continue to be an issue.  Even if participation mirrored the committee this new account would still be faster as it would not need the one hour review period.
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Offline Akado

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #3 on: January 28, 2016, 09:25:33 pm »
The entire committee could participate.  I don't think they want to.  Bhuz was the only volunteer.  Unless we use a bot coordination across all of our timezones would continue to be an issue.  Even if participation mirrored the committee this new account would still be faster as it would not need the one hour review period.

Oh I see that could be very useful then. People couldn't use the review period to manipulate the market and mess things up, good idea! I think all committee members should be notified first though as not to create any issues of people claiming you're acting behind the committee's back
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Offline Bhuz

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #4 on: January 28, 2016, 09:57:07 pm »
The entire committee could participate.  I don't think they want to.  Bhuz was the only volunteer.  Unless we use a bot coordination across all of our timezones would continue to be an issue.  Even if participation mirrored the committee this new account would still be faster as it would not need the one hour review period.

Oh I see that could be very useful then. People couldn't use the review period to manipulate the market and mess things up, good idea! I think all committee members should be notified first though as not to create any issues of people claiming you're acting behind the committee's back
I think that the very purpose of this thread is just to have the permission from the shareholders to pass the task and its burden to the committee-trade instead of have the "real" and "full" committee-account manage these operations with difficulties.

Offline abit

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #5 on: January 28, 2016, 11:18:42 pm »
I saw I'm in the active authorities list. Thanks for trusting me.
So what's the plan? Move all funds to committee-trade account, then sell all at 15% premium, reduce premium by 1% everyday,  no less than 5%, until all funds sold out?


- Use that BTS as collateral to create more assets
- Sell those assets

I'm against this. We must make sure the funds are safe, short is too dangerous especially when only put 200% as collateral.
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Offline Akado

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #6 on: January 28, 2016, 11:21:36 pm »
I saw I'm in the active authorities list. Thanks for trusting me.
So what's the plan? Move all funds to committee-trade account, then sell all at 15% premium, reduce premium by 1% everyday,  no less than 5%, until all funds sold out?


- Use that BTS as collateral to create more assets
- Sell those assets

I'm against this. We must make sure the funds are safe, short is too dangerous especially when only put 200% as collateral.

Just throwing out ideas, I'm definitely not the right person for that kind of decisions ahah can't collateral always be increased if you want to? Not that I necessarily agree with that... I would just like to see any ideas that make sense, a plan. I don't have enough knowledge about the markets to do that.
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Offline xeroc

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #7 on: January 29, 2016, 08:10:17 am »
I think having the funds in a different account makes sense .. Committee is busy with many things already.
Once the committee has decided how to deal with the funds, they can still verify that the trading account acts as it should.
I'll work on the grapheneexchange python module to also support proposed orders next week
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Offline puppies

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Re: [POLL] Should the committee use a separate account to trade?
« Reply #8 on: February 04, 2016, 12:04:36 am »
Due to the results from this poll I will be creating a proposal to transfer the funds the committee owns to the committee-trade account.  Before I do that I will be creating a proposal to add bitcube to the active authority of the committee trade account at his request.  If there is anyone else interested in having their multi sig active authority added to this account please let me know now.
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Offline xeroc

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