If a bank had 10 million shares and then they created 200 000 shares but gave it back to shareholders who opened an account at the bank then every shareholder who opened a bank account would have at least 1.02 per 1 share and only people who didn't open an account would lose. However the bank would have turned all their shareholders into account holders.
This is an excellent analogy and really helps demonstrate the basic mechanics of your proposal. Like the bank shareholders in your example, all BTS holders have to do is move their BTS to the DEX and short BitAssets to themselves, and there will be zero cost to them.
By the way, you mentioned the only people that "lose" are the bank shareholders that don't open an account, or in our case the BTS holders that don't participate in yield harvesting. Although I would argue that it could easily be a net wash (or better) for them since this whole effort will ultimately add value to the entire network, which would accrue to all shareholders, even those with BTS on the exchanges. Of course, they just wouldn't benefit as much as those who are yield harvesting.
The more I think about this idea, the more I like it. And so far no one has poked any holes in it as far as I've seen. I also love that this would position us to have a voluntary liquidity pool, which I assume could be plugged into the market maker rewards program being discussed on another thread. In that case, I imagine such a liquidity pool could be used to provide liquidity not just for BitAssets, but for ANY asset. Just imagine what it would mean to have such market making operations in terms of supporting/bootstrapping markets for promising new coins that aren't trading elsewhere. The most recent one was Decred, which still isn't trading on Poloniex. That could have been a good opportunity for us to gain attention and users, and may actually still be. Also, there is another very promising ICO coming up and just imagine what it would mean if we could become the dominant exchange for that coin?
C'mon people, let's get behind this proposal. It's low cost and we stand to bootstrap the heck out of our BitAssets product. That alone will gain us a lot of attention. But more importantly, it is INCREDIBLY crucial to jump start BitAssets ASAP, especially considering
@kenCode's POS system will soon be ready and we should be in position to use that as a very powerful network effect generator. Without bootstrapping BitAssets, we totally lose out on that and much more, and in that case we might as well just give up. Seriously.
So what are we waiting for?