Personally I think the best way to offer a POS minting reward that removes BTS from current supply is by offering yield on SmartCoins.
https://bitsharestalk.org/index.php/topic,21597.msg286581.html#msg286581
It will also create demand for SmartCoins and because BitUSD is less volatile than crypto, the yield required to attract BitUSD demand is much lower.
Yeah, this would be probably good idea, but it might take some time until we reach a consensus about exact model and implement it. In the mean time I think we could still do something simpler that even the antidilution gang can understand and accept.
Isn't free market the best idea?
What do you mean?
Bitshares is a DAC, so it's like a company. Shareholders want to see the value of their investment to go up. We should consider all possibilities how this can be achieved, whether it is offering products and services to customers, incentivizing smartcoin liquidity or locking BTS away from markets.
Dash is a case that proves that it is possible to raise the price of core token by locking it away from liquid markets. Is there any good reason why we shouldn't do the same?
I mean focus more on products and less on the (price of) shares.
Just some random thoughts here.
It's risky to have shares be a part of products (like what we did).
Once we have side chains, it's best to use SIDE.BTC etc as default collateral of all smart coins, or create new smart coins, let market select the best ones. After then, dumping and pumping of shares (BTS) won't impact liquidity of products (smart coins), and perhaps no price feeding is needed at that time. A new era, BitShares 3.0.
If you use SIDE.BTC as default collateral then the more popular SmartCoins becomes the more demand there is for BTC... So you're mostly growing BTC demand with that strategy not necessarily BTS unless you earn fees from their transactions. (Even in a ninety percent BTS price decline, BitAssets still retained their value so they're designed pretty well in terms of using BTS as collateral.)
The Yield Promotion is also fairly self funding, example...
If you buy 100 Z Shares we'll give you 5 free Z Shares per year as part of a temporary promotion.
20 people say yes please. This creates buying demand for 2000 Z Shares. But we will create 100 Z shares worth of sell pressure over the following year to fund their bonus.
Provided just one new person takes part in the following year, his 100 Z Shares of demand will offset the sell pressure of the bonus for those 20 people.
So in that example, until such time as new demand for that promotion is growing at less than 5% a year, the promotion is self funding.
At that point you curtail/close the promotion.
So assuming all else being equal, customers will choose the BitUSD with yield vs. one with no yield, you will become market leader and attract lots of self funding demand for BTS for many years to come with such a promotion. By then you will have bootstrapped SmartCoins and banks will probably be charging negative interest. So a private, no interest BitUSD will still be very attractive.
Studies show 80% of people hadn't moved their money for over 3 years since their teaser rate bonus ended anyway.
https://www.fca.org.uk/static/documents/market-studies/cash-savings-market-study-final-findings.pdf