If your funds are not touched for 1 year, 5% is destroyed and the transaction is moved forward.
If the balance is less than the minimum trx fee, then 100% is destroyed
The act of destroying BTS is how dividends are paid, so dividends do not disappear into a black hole.
The money supply is infinitely divisible, so losing supply is not a problem.
I gave this some more thought and it actually makes allot of sense as a method of charging fees and paying dividends. It just takes a bit of a cognitive restart to accept/understand this alternative method.
Something else ive been wondering about.
For someone to purchase a bitAsset, someone needs to short that bitAsset.
So what if someone purchases a bitAsset and holds it. But persons holding short positions cash out their short positions. And the majority of people holding shorts cash out their positions.
What happens to the people who own the bitAssets, do their bitAssets no longer exist? because the bitAssets are no longer being lent into existence?
In this way, is their risk in holding a bitAsset over the real asset (given that BitShares never reaches a non-zero value)?