"Lost coins only make everyone else’s coins worth slightly more. Think of it as a donation to everyone." Satoshi Nakamoto
Above is one of Satoshi famous quotes about people losing bitcoin.
But bitshares is different and I think the following is true
Lost wallets that hold bitshares make everyone else's bitshares worth slightly more.
Lost wallets that have open collateral positions are probably a good thing for liquidity.
Lost wallets holding BitAssets are bad for liquidity
If there are more lost bitUSD than lost BitUSD collateral positions then it is impossible to close all the collateral positions. This could create a situation where the demand for bitUSD is higher than supply.
We need the opposite situation for liquidity. We need the supply of BitUSD to be higher than demand. (remember theres always demand below face value because of the ability to force settle for profit)
This leads me to believe we should create an account that creates a bunch of BitUSD then lose the keys on purpose. This would be akin to the base money (M1 supply) that Central banks create.
This would help solve the problem of kickstarting trust in those who would like to create BitUSD but are currently afraid due to lack of BitUSD supply near the market price.
This is complex stuff to get your head around but I've tried to write it concisely as possible.