BitShares Forum

Main => Technical Support => Topic started by: bitacer on January 16, 2016, 04:36:12 am

Title: Are fees for creating UIAs burned ?
Post by: bitacer on January 16, 2016, 04:36:12 am
When we create UIA we pay minimum 5k fee , I wonder if those are burnt or what?
Title: Re: Are fees for creating UIAs burned ?
Post by: abit on January 16, 2016, 05:31:03 am
When we create UIA we pay minimum 5k fee , I wonder if those are burnt or what?
Half of them went to your UIA's fee pool. The other half went to (system) reserved pool https://cryptofresh.com/reserve.
Title: Re: Are fees for creating UIAs burned ?
Post by: bitacer on January 16, 2016, 07:55:21 am
When we create UIA we pay minimum 5k fee , I wonder if those are burnt or what?
Half of them went to your UIA's fee pool. The other half went to (system) reserved pool https://cryptofresh.com/reserve.

thanks abit ! So they still stay in the system, when I issue  lets say 1 million units with core exchange rate of 1 BTS, whether I really back these assets or not,  I would be diluting the system . What do you think?
Title: Re: Are fees for creating UIAs burned ?
Post by: xeroc on January 16, 2016, 03:10:17 pm
The core exchange rate ia only relevant if people use your token to pay for tx fees ..
Its also independent of the amount of shares in existence.
If your fee pool runs out of funds, people will nees BTS to pay for the fee
Title: Re: Are fees for creating UIAs burned ?
Post by: bitacer on January 16, 2016, 03:13:27 pm
The core exchange rate ia only relevant if people use your token to pay for tx fees ..
Its also independent of the amount of shares in existence.
If your fee pool runs out of funds, people will nees BTS to pay for the fee

xeroc ! thanks for always being there.
Title: Re: Are fees for creating UIAs burned ?
Post by: bitacer on January 16, 2016, 03:54:56 pm
Imagine total BTS in the system is 1000 ,  only holders are two of us
you hold 500 and I hold 500
1. I create an UIA and ask 300 BTS for it
2. You think that it worth that much and  you buy it
3. now you have 200 BTS + UIA (worth 300) = 500
4. I now have 500 + 300 = 800
5. So now in total there are 1300 BTS in the system, wrong?

Haven't we just diluted the system?

( I didnt take fees into account since they are still in bitshares system.)
Title: Re: Are fees for creating UIAs burned ?
Post by: abit on January 16, 2016, 05:26:00 pm
Imagine total BTS in the system is 1000 ,  only holders are two of us
you hold 500 and I hold 500
1. I create an UIA and ask 300 BTS for it
2. You think that it worth that much and  you buy it
3. now you have 200 BTS + UIA (worth 300) = 500
4. I now have 500 + 300 = 800
5. So now in total there are 1300 BTS in the system, wrong?

Haven't we just diluted the system?

( I didnt take fees into account since they are still in bitshares system.)

Although I may believe your UIA worth 300 BTS, others may not believe it. The 1000 BTS in total is still 1000 BTS, so it's not dilution. In short, dilution on BTS itself is dilution, otherwise not.

If everyone believe your UIA worth something, it usually because you brought or will bring some value into the system which is what we want to see. It's again not dilution, it's value add.
Title: Re: Are fees for creating UIAs burned ?
Post by: bitacer on January 16, 2016, 05:33:43 pm
In the system the value is expressed with BTS , how else can I bring value into the system? Lets assume everybody sees value in the UIA I created, that can only be ultimately expressed in  terms of BTS.
(http://s17.postimg.org/drgi1mlnj/Screen_Shot_2016_01_20_at_9_20_55_AM.jpg)