Author Topic: Lost accounts holding BitUSD bad. Lost accounts with collateral positions good.  (Read 2322 times)

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Offline konelectric

I'm good at losing things. Just send me your bitusd.   :)
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Offline JonnyB

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Lost bitassets could be taken care of with the help of demurrage.  It would decrease balances of longers and shorters by same amount with time, and lost balances would eventually go to zero.

Maybe demurrage could solve this particular problem but demurrage is a bad idea generally for a currency we want people adopt whether thats bitusd or BTS.

Collateral in lost accounts can be released by force settlement.
Collateral in lost accounts released by force settlement is still lost.

But as stated in original post, losing BTS (the collateral not collateral position) is not an issue. The same way lost bitcoin is not an issue.
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Offline 天籁

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Collateral in lost accounts can be released by force settlement.
Collateral in lost accounts released by force settlement is still lost.

Offline yvv

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Lost bitassets could be taken care of with the help of demurrage.  It would decrease balances of longers and shorters by same amount with time, and lost balances would eventually go to zero.

Offline JonnyB

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Collateral in lost accounts can be released by force settlement.

only if they are the least collateralised positions
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Offline abit

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Collateral in lost accounts can be released by force settlement.
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Offline JonnyB

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Interesting thought. Can you think of any way to provably "lose" the keys to a wallet?

Best thing I came up with was massive multisig account with loads of signatures all of which promise to destroy their accounts.
I run the @bitshares twitter handle
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Offline Chronos

Interesting thought. Can you think of any way to provably "lose" the keys to a wallet?

Offline JonnyB

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"Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone."   Satoshi Nakamoto

Above is one of Satoshi famous quotes about people losing bitcoin.

But bitshares is different and I think the following is true

Lost wallets that hold bitshares make everyone else's bitshares worth slightly more.
Lost wallets that have open collateral positions are probably a good thing for liquidity.
Lost wallets holding BitAssets are bad for liquidity

If there are more lost bitUSD than lost BitUSD collateral positions then it is impossible to close all the collateral positions. This could create a situation where the demand for bitUSD is higher than supply.

We need the opposite situation for liquidity. We need the supply of BitUSD to be higher than demand. (remember theres always demand below face value because of the ability to force settle for profit)

This leads me to believe we should create an account that creates a bunch of BitUSD then lose the keys on purpose. This would be akin to the base money (M1 supply) that Central banks create.

This would help solve the problem of kickstarting trust in those who would like to create BitUSD but are currently afraid due to lack of BitUSD supply near the market price.

This is complex stuff to get your head around but I've tried to write it concisely as possible.
I run the @bitshares twitter handle
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