BTSX is a virtual vault for storing value via BitAssets
The virtual vault is currently risky, people need to be compensated for that risk.
How? Interest on their BitAssets
(BTSX holders don't need to be compensated for the risk because they get the reward from BTSX doing well)
We have an attempt from Shentist here https://bitsharestalk.org/index.php?topic=8047.msg107361#msg107361
Gulu here https://bitsharestalk.org/index.php?topic=7865.msg104117#msg104117
I am very excited about 4.11 because
2) Shorts can sell at up to 10% below the peg *if* there are offers to buy above the peg. The difference is captured as fees, gives priority to shorts willing to pay the highest fee.
That difference captured as fees gives you the pot that can be distributed to all BitAsset holders as interest and in so doing create the market. (I presume because of TITAN this is not easy to do.)
My question is does anyone know what the current plans are with regards to introducing interest into the system?
To BM, if you have the time - Do you currently feel that interest may not be necessary/not easy to implement and want to give the system a chance without it or do you guys recognise that interest is required and you are thinking how best to approach it?
Assuming 2 identical systems except system A didn't redistribute the captured fees from (2) above as interest to BitAsset holders and system B did.
Would someone looking to store their value in BitAssets choose system A or system B?
BitAsset holders would choose system B so there would be no demand for BitAssets in System A, assuming they are otherwise identical, ergo that interest should go to BitAsset holders if possible imo.
(I also don't feel it will effect the peg as banks & exchanges such as bter all offer interest and the level of interest attracts capital. The interest we can afford to pay seems to be defined by (2).)