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General Discussion / Re: Incentivize SmartCoin collateralization
« on: January 21, 2017, 02:00:40 am »Why are users involved in creating smartcoins in the first place? Why shouldn't the blockchain produce them? Does it matter if all the collateral is put up by a user? What if creating a smartcoin was as simple as just buying it from the chain. If I want 50 bitusd I send the equivalent value in BTS to the chain. The blockchain lockes 200% plus the 101% collateral given to it. The 1% is a fee for this instant conversion. Same thing in reverse. I send the blockchain the 50 bitusd, it sends me 99% of the value in BTS and unlocks the other 200% it was holding. The 1% fee can be burned or used as dividend payment to bond holders.
This way shorting can work normally and not involve creating supply. The collateral used doesn't made any smartcoins. It is just used to measure position in terms of the smartcoin being shorted. Trader's can short for what they really want to do which is speculate.
NO. This is just blockchain buying and selling passively, blockchain will lose all the token.