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General Discussion / Re: Would you support 2% dilution to BitAsset Yield for a 6 month limited trial?
« on: March 07, 2016, 06:02:54 pm »i voted YES purely on the condition that this is a LIMITED TRIAL with perpetuation of the policy contingent on results.
I, too, am in favor of limiting this to a 6-month trial. I propose targeting it 75% to BitUSD, 20% BitCNY and 5% BitEur, with a goal of creating the equivalent of at least $1M in total BitAssets. Also, to receive yield, perhaps it should be required to lock up funds for a month at a time. So yield would be paid every month starting 1 month after lock-up (on an account by account basis), and early withdrawal means yield is forfeited.
So we get people to move funds onto the DEX, they become more frequent users of the DEX, and create BitAssets propelling us to worldwide fiat-pegged leaders, which will garner greater overall attention for Bitshares in general and our smartcoins in particular. Not to mention new users that might be attracted by the yield to buy and hold smartcoins.
On the liquidity front, we can launch this in conjunction with liquidity pools that any of these new users and new BitAsset creators/holders can voluntarily participate in. This can be incentivized by the Nasdaq-style market maker liquidity rewards program (to be developed separately, discussed on another thread), which of course any liquidity provider can participate in (and which UIA issuers can use with their own funds to incentivize liquidity in the markets for their own assets).
If we require generation of more liquidity, the rewards can be increased as necessary. Conversely, as liquidity grows, the rewards can be diminished and directed to other BitAsset markets such as BitGOLD, BitSILVER, BitOIL, BitAAPL, etc.
These are just some suggestions and starting points for further discussion, including how some of the pieces of the puzzle might fit together. Thoughts @Empirical1.2, @cylonmaker2053? Anyone else with constructive input?
I think with the yield the goal is to trial it & guage it's efficacy. So I wouldn't necessarily suggest spreading it out over 3 assets but just trying it on 1. If we think we can accurately measure the impact on BitUSD with 75% then we might be better off trialling BitUSD at a lower cost and only rolling out the additional amount of CNY/EUR if shareholders feel the results are sufficiently positive.
Also regards the 1 month lock up, I don't know. On the one hand I imagine interest accrued at <1 month wouldn't be a very strong motivating factor, so it might not be worth the restriction. Then again without it many people might buy BitUSD whenever BTS was falling and vice versa, thus removing/putting pressure on buy/sell side liquidity at those key times and so actually incentivizing people to hold in those turns may help.
As for the liquidity front yeah that sounds good, it's not my area but given the spreads we clearly need to subsidize it in some way and I believe increasing BitAsset adoption is incredibly valuable to BTS so I think it's worth it. It also makes sense that yes you'd decrease the incentive when you had sufficient liquidity and/or move it around to other markets you wanted to bootstrap.
Exactly, a limited trial with perpetuation contingent on results. 
