i see your point now. it still seems like this might lead to gaming of the system but my game theory sucks.
i trust you guys on the math so im on board, however, Empirical brings up a great point being that we could basically bring forward the success of our bond market tomorrow to today simply by using all or half of the proposed funds for this project to pay yield on bitassets
it is a different strategy that would put us more directly in competition with banks and many community.members have left over the years and have experienced disappointment that we have dropped this strategy. We would win them back and more.
here, check out the poll I started and see what the communtiy thinks:
https://bitsharestalk.org/index.php/topic,21549.0.html
anytime we propose spending revenue on projects it is a contentious issue. the fork we are at here is do we want to bring in traders next and incentivise our DEX ?
or do we want to bring in savers and in entivize yield (as an incentive to buy and hold in a market with big spreads)
Just voted in that poll and it looks like i'm the only one in favor of supporting yield on bitassets! One caveat to that poll is that i would remove the word "forever" in the interest payments. i'm all for a bond market with contractual yields in rates and maturity. to keep things simple, however, i think the biggest bang for the buck is in a Bitshares Treasury bond that pays out some % of fees as interest. we could start with a fixed rate product, a variable rate one depending on fees, or whatever. The key, though, is to create something that can reward investors for holding bitassets.
Best to test a prototype, maybe a bitUSD Treasury that pays interest from fees earned in the bitUSD market; the bond should only be available for purchase with bitUSD, as well, which creates circular, and hopefully growing, demand for the market over time. If that works, roll out similar bonds for the other relatively liquid markets. Imagine the PR we could get when we eventually have a Gold Bond that pays bitGOLD investors? There aren't many other places in the world you can go to simultaneously adopt gold price exposure and earn interest!
re: maturity, i'd recommend the prototype bitUSD-denominated debt instrument should be a 30-day bill instead of a longer dated bond. Those can, and should, come later. Right now we want a good mix between offering assets with yield that utilize our underlying bitassets and turnover to keep things as liquid as possible.