Professional writer who understands all the details

[merockstar]

question: I've read random threads here and there that reference dividends being paid to holders of bitAssets.

I've also read about it here: http://invictus-innovations.com/bitshares-as-dac-bank

is the dividends thing still in the works?

according to the site I just linked, the destroyed five percent fee was going to go towards those dividends.
is that still true?

can anyone fill me in or link to the most current threads on the subject?

[merockstar]

I am truly surprised by the progress you made in 2 days!

You should be proud of yourself!


PS
If you read at least some of my posts my compliments do not come easy!

why thank you sir.   :D

[tonyk]

I am truly surprised by the progress you made in 2 days!

You should be proud of yourself!


PS
If you read at least some of my posts my compliments do not come easy!

[merockstar]

in that case, i will try to come up with something more unique, and you can have yours.

but do use that post you made earlier, it's what made it click for me and i think it could help alotta people understand.

but do use that post you made earlier, it's what made it click for me and i think it could help alotta people understand.

If you mean the post I sad is great

https://bitsharestalk.org/index.php?topic=4563.msg67786#msg67786

– it is truly great and you should start with it.

If it is something else keep in mind that it is very very hard to be in somebody else's brain and to understand exactly which tiny connection is not so obvious to them... the base strategy for those is what toast said – have a lot of different explanation, from a lot of different people and hope that every willing student will find his 'personal missing bit of information'  in one of them....

that is exactly the post to which i was referring.

[tonyk]

in that case, i will try to come up with something more unique, and you can have yours.

but do use that post you made earlier, it's what made it click for me and i think it could help alotta people understand.

but do use that post you made earlier, it's what made it click for me and i think it could help alotta people understand.

If you mean the post I sad is great

https://bitsharestalk.org/index.php?topic=4563.msg67786#msg67786

– it is truly great and you should start with it.

If it is something else keep in mind that it is very very hard to be in somebody else's brain and to understand exactly which tiny connection is not so obvious to them... the base strategy for those is what toast said – have a lot of different explanation, from a lot of different people and hope that every willing student will find his 'personal missing bit of information'  in one of them....

[merockstar]

Can anyone think of any other points I should include as part of the last paragraph?

I now intend to expand on that explanation a bit a la toast's post here. But if I'm missing anything else I'd love to hear about it.

[merockstar]

I agree, the last paragraph is 99% of the innovation. It's important to explain the concept that each individual will choose to trade towards consensus *because they expect others to do it*.

You aren't really betting about the future price, you are betting about what you think everyone else thinks the future price will be. Or rather, what everyone else thinks everyone else thinks everyone else thinks .... the future price will be.

so you and tonyk are saying i should expand on the last paragraph?

okey. i will add that to the list.

that's going to be a tough one to explain though. I have half a mind just to quote that post you made for me earlier, toast.

Not a bad idea =P

Your explanation will be one of many I hope to host on the bitshares-x.info site. The more different ways of explaining we have the better.

in that case, i will try to come up with something more unique, and you can have yours.

but do use that post you made earlier, it's what made it click for me and i think it could help alotta people understand.

[toast]

I agree, the last paragraph is 99% of the innovation. It's important to explain the concept that each individual will choose to trade towards consensus *because they expect others to do it*.

You aren't really betting about the future price, you are betting about what you think everyone else thinks the future price will be. Or rather, what everyone else thinks everyone else thinks everyone else thinks .... the future price will be.

so you and tonyk are saying i should expand on the last paragraph?

okey. i will add that to the list.

that's going to be a tough one to explain though. I have half a mind just to quote that post you made for me earlier, toast.

Not a bad idea =P

Your explanation will be one of many I hope to host on the bitshares-x.info site. The more different ways of explaining we have the better.

[merockstar]

I agree, the last paragraph is 99% of the innovation. It's important to explain the concept that each individual will choose to trade towards consensus *because they expect others to do it*.

You aren't really betting about the future price, you are betting about what you think everyone else thinks the future price will be. Or rather, what everyone else thinks everyone else thinks everyone else thinks .... the future price will be.

so you and tonyk are saying i should expand on the last paragraph?

okey. i will add that to the list.

that's going to be a tough one to explain though. I have half a mind just to quote that post you made for me earlier, toast.

[toast]

I agree, the last paragraph is 99% of the innovation. It's important to explain the concept that each individual will choose to trade towards consensus *because they expect others to do it*.

You aren't really betting about the future price, you are betting about what you think everyone else thinks the future price will be. Or rather, what everyone else thinks everyone else thinks everyone else thinks .... the future price will be.

[merockstar]

Any remaining collateral after those purchases, if any, is returned to the ex-short-position-holder.

is it though? toast just told me it gets destroyed.

Let's say Sam's wrong, and bitShares falls in value (put another way, bitUSD gains value on BitShares).

after a certain point does he just plain lose the ability to cover his position, and the collateral gets destroyed thus replacing the bitUSD that got created out of thin air?

Yes, at the margin call price (say, 1.5x original price) the network takes his ENTIRE collateral (2x original price), buys enough bitUSD to cover his position off of the market, destroys the bitusd, and then destroys the rest of the BTS from collateral

Actually I think I was wrong, IIRC the plan is to destroy 5% of unused collateral as punishment for margin call and return the rest

roger that, I will make the necessary changes in the final draft.

3. The problem of course is that in 90 % of the 'market peg' subsection you explain technical details (known to mankind for quite some time) and you leave just 10% to talk about the real  innovative market peg  system. But it is what it is...

It's been known to money-havin mankind for quite some time. Those of us who are normal (read: poor as shit) have no idea what all this shit is about, and it will be our very first ever opportunity to engage in financial practices.

Nevertheless, could you give an example of what you were expecting?

[toast]

Any remaining collateral after those purchases, if any, is returned to the ex-short-position-holder.

is it though? toast just told me it gets destroyed.

Let's say Sam's wrong, and bitShares falls in value (put another way, bitUSD gains value on BitShares).

after a certain point does he just plain lose the ability to cover his position, and the collateral gets destroyed thus replacing the bitUSD that got created out of thin air?

Yes, at the margin call price (say, 1.5x original price) the network takes his ENTIRE collateral (2x original price), buys enough bitUSD to cover his position off of the market, destroys the bitusd, and then destroys the rest of the BTS from collateral

Actually I think I was wrong, IIRC the plan is to destroy 5% of unused collateral as punishment for margin call and return the rest

[merockstar]

Any remaining collateral after those purchases, if any, is returned to the ex-short-position-holder.

is it though? toast just told me it gets destroyed.

Let's say Sam's wrong, and bitShares falls in value (put another way, bitUSD gains value on BitShares).

after a certain point does he just plain lose the ability to cover his position, and the collateral gets destroyed thus replacing the bitUSD that got created out of thin air?

Yes, at the margin call price (say, 1.5x original price) the network takes his ENTIRE collateral (2x original price), buys enough bitUSD to cover his position off of the market, destroys the bitusd, and then destroys the rest of the BTS from collateral

[tonyk]

1.The market peg part is correct enough!

2.Just Change:
If the value goes up 50% and the person who shorted can no longer benefit from covering their position then the network uses the collateral to buy the amount of the bitAsset that was created back from the market and destroys it along with the remaining collateral. This removes the extra value from the market that was created when the bitAsset came into existence, closing the short person's position for them, and they untilmately end up losing half their BitShares.


With:

In order to guarantee that no short position exists without enough collateral backing it up, at predetermined price level (more precisely ratio of collateral to current bitAsset market price)  the system uses the collateral to close such short position. To do this the system simply (re)purchases the bitAsset from the market. Any remaining collateral after those purchases, if any, is returned to the ex-short-position-holder.

You can add  this immediately after: It is precisely the same behavior the short position  holder will have if she decides that her short positions have produce enough loses and she wants to prevent any future losses, only this is done automatically by the system not the position holder herself.

3. The problem of course is that in 90 % of the 'market peg' subsection you explain technical details (known to mankind for quite some time) and you leave just 10% to talk about the real  innovative market peg  system. But it is what it is...


4.On a side note:
'when it comes to that, i prefer conjured  '
I think that word conjured is an excellent choice in that context!

[merockstar]

****clipped for brevity****

I'm finally beginning to understand this stuff!  Thanks.  :)

(I would use the word "honor" not "compensate" when share-dropping to PTS/AGS (or Doge).  By "honoring" them you are indicating that they are a demographic you value and are seeking their support.)

:o my pleasure, Stan. I will change that in the final draft.   8)