What do you guys think of the economics behind Bancor? I would ask on Bitcointalk, but I think this is the best place to have this discussion. I am still digesting the economics of it, but essentially the Bancor project is purporting that they have conceptualized a way to create Smartcoins with infinity liquidity.
https://www.bancor.network/https://www.bancor.network/whitepaper/enhttps://bitcointalk.org/index.php?topic=1789222.0So far the best proposals I have seen for highly liquid Bitshares Smartcoins are:
- Using inflation to provide autonomous market depth:
https://www.docdroid.net/2OcoImM/autonomous-smartcoin-liquidity-funded-by-dilution.pdf.html- Tonyk's idea to make BTS unspendable, thus all BTS trading would take place on the BTS chain (unless exchanges program a special IOU trading module specifically for Bitshares trading... which is unlikely IMO due to the risk/reward):
https://bitsharestalk.org/index.php/topic,21409.0.html- Using a worker proposal to use reserve pool funds to create smartcoins and sell them into the market at feed price plus 10%:
Discussed many places
- Using inflation to pay people to provide liquidity, similar to how Nubits does (this was not the reason Nubits failed btw):
Again, discussed many places.
But... the main question I am proposing in this thread... has Bancor come up with a better idea than all of the above (and better than Bitshares' historical idea of a "if you build it, they will come" mentality)?
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If the economics of Bancor are sound, then this could be a Bitshares killer considering the DEX space is getting quite competitive recently (some implementations of which are better IMO, as far as decentralization goes). Again, IMO, Smartcoins is one of the last few things Bitshares has going for it.
In the DEX space... you now have:
Bitshares (derivative and IOU based)
cons: derivative and IOU based
pros: convenient and more established market
Waves (IOU based)
cons: IOU based
pros: highly funded project, big userbase and hype, clean and easy to use GUI
Supernet is apparently nearing a release of a DEX (autonomous multisig)
cons: multisig
pros: convenient and hold/trade real assets, not derivatives
Blocknet (atomic swap based)
cons: Have to download the entire blockchain, but this inconvenience can later be reduced to simply running SPV nodes of coins you want to trade. This inconvenience could technically be further reduced by building a multi coin SPV wallet which is integrated in the Blocknet wallet.
pros: fully decentralized, no IOUs and no derivatives or IOUs
Honorable mention to: B&C Exchange ... although the Nubits dev abandoned the project, they did conceptualize a great idea for how to implement a DEX that would be superior to IOU and derivative DEXs.
There are too many autonomous multisig and IOU-based DEX projects to list really...
Considering Bitshares is derivative based and/or IOU based, I value it around the same level as other autonomous multi sig, derivative, and IOU exchanges. I think Blocknet has the best design for a DEX thus far (as long as it is made to be convenient by implementing multicoin SPV wallets directly in the Blocknet client).
So, that leaves Smartcoins as Bitshares main "killer feature", which is why I am interested when new smartcoin-like proposals come out.
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