I wrote about before, but it was buried deep in another thread:
So we need more revenue to fund promotion of BTSX. Before we resort to inflation/dilution, how about we try increasing transaction fees? Being able to buy 10000 BitUSD for just a fee 0.1 BTSX seems like I should have been charged more. I would have been happy to pay $2-5 for that trade.
Keep the current cheap 0.1 fee for creating an order, and just charge the larger fee when a order is matched. We could even do what the centralized exchanges do and give market makers a discount.
I think shareholders/delegates should have a vote on changing the transaction fee structure so that in these early days the system could charge more.
This is a much better way of funding development than inflation.
I agree with you but it appears that the community is split and a lot of people want inflation. I don't want inflation any time soon but they do and in my opinion something like this should be put up for shareholder vote.
They have a plan for BitAsset network effect that basically requires dilution, money raised from others sources would not be enough short term.
Every new person that holds a BitAsset essentially increases the BTSX CAP by 2-3X that amount. So the more people you can get to buy BitAssets the better for BTSX shareholders and the fastest way to do that is to offer additional BitAsset incentives funded via dilution.
The second part of network effect is to merge BitShares into one main SuperDAC so that there is one simple to buy into BitShares that maximises network effect and gets all of the attention of key people like Bytemaster.
I think it is very exciting. I will support it. Despite having a lot of AGS, I think that as BTSX is by far the biggest CAP, that it must be protected the most and any mergers should err on the side of being more favourable to BTSX.
If someone else came up with a decentralised constitution enshrined hard capped BitAsset competitor I would hedge a little there, though that option would not be competitive as a BitShares DAC.
You can all it BitAsset network effect if you want but I see it like this. Bytemaster is asking that we all give him and his team a loan by temporarily transferring some of our buying power to him in the form of newly created shares.
This makes sense when we know the loaned buying power will come back to us in a boomerang like effect. This makes sense when for example the entire economy is growing like it was when Bitcoin price was going up and new users were being introduced to the community at a fast rate.
But look at how things are today where you have an ecosystem with an economy in a downward tailspin and think of yourself as the owner of the bank. Are you going to loan money when the economy is contracting?
I think this should be voted on and should only be approved if there is a super majority. This means 75% of the vote, not 51%. If Bytemaster can convince 75% of us to do it then it should be done and I think it's far easier to convince 75% of us to do it at a later date when the market cap is increasing.
When we are optimistic and seeing economic growth we are much more likely to invest. When we are seeing the economy contract the last thing we want to hear is that there is a proposal to dilute our shares. Bad timing is why the market reacted like it did and the fact that it was presented like it was already decided. If the voting capability is set up first and we can vote on it like how shareholders are supposed to then I have no problem with it if the board of directors and chairman Bytemaster vote in favor of it.
I wouldn't vote in favor of it right now though. I think it is a bad time to dilute shares prior to the holiday season and during a time of very low market confidence. I also think there isn't a lot known about Bitshares VOTE to make me think it's the best thing since sliced bread and while it very well could be the proper step is to present the idea before talking about how to pay for it.
I encourage we use the metaphor that dilution is a loan from the shareholders to whomever receives our buying power. There should be reputation attached to this process so that whomever receives the buying power can be held to some sort of measured standard.
the nice thing about having "delution delegates" .. is that everyone can start funding a business (to grow the bitshares business) on the bitshares blockchain .. not just I3
Let me make it clear that I'm not against dilution entirely. I think in certain circumstances it can be the best option. It is a transfer of buying power and it is a loan.
I think if we are going to discuss it we should discuss it in a way so that the shareholders understand the risks involved. Shareholders expect to get their buying power back and then some which means there are expectations with this that would not exist in other cases. How can shareholders make sure that their expectations are met and that the buying power actually increases?
It's possible that you could give the development team more money but the result could be a further decrease in buying power. This is why I would suggest that these decisions wait until we are at an all time high in market cap, where growth is faster than whatever impact the dilution could have.