Hi Aaaxn, welcome to the forum!
1) BitUSD has some utility. Namely:
- It earns a reward or dividend (see 2 below)
- It can't be seized or frozen by another party
- It can be used to buy other assets
2) The interest isn't minting funds like other Proof of Stake assets. It is profit sharing of the fees collected by the blockchain. Instead of the fees going to miners they go to asset holders. It's more dividend than anything else.
Thanks. Nice to be around. I still can't grasp how is bitusd any better than dollars in my hand if I can't use it in commerce. As for your list:
Dollars in my pocket can't be seized too and I can buy far more assets for them. BitUSD is also illiquid and does not follow peg all the time. As for reward it is somewhat circular, because there will only be reward if people do trade BitUSD, but they won't do it unless it has utility and/or pays reward
And isn't paying people for holding bitUSD a form of admitting they have no utility, so you need to pay people for holding them?
I was working independently on another form of bitassets for quite a long time and arrived at different system - then I found bitsharesx. I believe you could adopt my system of issuing assets and get much better results in terms of maintaining 1:1 peg especially in first stages of adoption, where there is very limited liquidity. Are there any bounties for providing better peg enforcing mechanism?