For the sake of the average Joe (of which I am one) please help me run through the math:
I initially hold 4000 BTS and there are 4,000,000 total BTS:
(4000 / 4,000,000) * 100 = 0.1% of total BTS.
At some later point transactions have destroyed 2,000,000 BTS and there are now only 2,000,000 total BTS:
(4000 / 2,000,000) * 100 = 0.2% of total BTS
A 2:1 forward split is implemented, granting shareholders one BTS for each BTS held:
4000 BTS (original holding) + 4000 BTS (granted by split) = 8000 BTS.
The post-split total number of BTS has now increased to 4,000,000:
(8000 / 4,000,000) * 100 = 0.2% of total BTS
Thus the 'dividend' is paid to the shareholder: holdings increase from 4000 BTS to 8000 BTS or alternatively from 0.1% to 0.2% of total market share.
BTS is saved from death by zero.
Assuming the foregoing is correct I have the following questions:
1. What is the mechanism for the split? Does the Bitshares X DAC create/distribute the BTS?
2. Can the splits occur on a daily/biweekly/monthly cycle? This would be extremely desirable in terms of investor familiarity and adoption.
Thank you for your help - I think this an extremely important concept but also a potential stumbling block.
It will be crucial for marketing to communicate the dividend mechanism clearly and simply.