@Stan:

Thanks and all of that makes sense to me. My question is HOW any of these directly benefits BTS. Unless i misunderstood BMs post, i think he was saying that Steemit would create their own smartcoins and UIAs  and not the Bitshares ones.

BM and I have split up the workload, each doing what we do best.
He makes babies and, like any good grandfather, I help raise them. 

All of my attention plus an all-star team of Forum Heroes and Fresh Talent are focused on maximizing the BitShares ecosystem.  Patience.

Quote from: CoinHoarder on July 07, 2016, 06:30:45 pm

FWIW- Dan first proposed most of the things he is doing in Steem here to the Bitshares community. You guys cut off his funding for said proposals- stating they were either unnecessary or declaring that inflation for development/improvements = bad. It is kind of the Bitshares' community's fault he has moved on from Bitshares to Steem. An employee must get paid for his work, or else he will look elsewhere for an employer that will pay him for working. Failure to see that to make a few dollars you have to spend a few dollars is entirely on the Bitshares' community. Short term greed stymied Bitshares and will be its eventual downfall.

No one cut off his funding.  Dan never even created a worker proposal.  Total bullshit saying that BTS won't pay for any development as there are 2 workers being paid already.

I wouldn't say Total BS.  It was clear that, no matter how many proposals we wasted time on in the prevailing anti-dilution environment, there would not be enough near-term funding to sustain The Team from only the BTS oil well.  Hence the imperative to drill more.  The problem with being forced to start drilling is that, once you strike oil somewhere, you tend to get a little distracted.   



Note that Cryptonomex is still drilling several more wells, for the exact same reason. 
Every one of those would directly benefit BTS if we hit a gusher.

In the end, it is exactly what BitShares was build for.

Shares are purchased because they can be used to build something that there is demand for.

When there are a trillion Sumos in circulation what do you suppose the BitShares ecosystem will be worth?

What will it's prospects be to double again?

What will the marketing budget be at that time?

Quote from: Stan on June 23, 2016, 11:49:51 pm

Lots more discussion on this topic may be found on Steemit, including this "ponzi scheme" concern which quickly went down in flames (all modesty aside).

https://steemit.com/bitshares/@Stan/the-power-of-5#@cyrano.witness/re-stan-the-power-of-5-20160623t210949238z

Huh? What flames? Your own response is the only one.

True, I was the one politely wielding the flamethrower... 



What did you think of the answer to the ponzi accusations?
That's what I was looking for feedback on here.

Quote from: Chronos on June 23, 2016, 03:38:27 am

This idea could bring new eyeballs to Bitshares, but some of the "benevolent whale" reasoning in this thread seems illogical to me.

It's not that illogical for a whale. Imagine a whale with $2.5 million.

He has purchased a 20% stake in BTS for circa $2 million. He has $500 000 in fiat.
He offers 5% p.a yield on 'BitSumo DreamCoin' & uses some of his stake to help short Dreamcoins into existence when there is demand.
His $500 000 in fiat will cover 5% yield on up to $10 million worth of DreamCoin in year 1 regardless of BTS price.

But $10 million of BitSumo couldn't be created unless there was MANY millions of dollars worth of new demand for BTS which would drive the price of BTS and it's value MUCH higher.

The result is that his leveraged 20% stake in BTS (Currently worth $2 million) should dramatically increase in value.

I would like to see the BTS blockchain itself support yield during the SmartCoin growth stage but this probably works too. (I would also consider reducing forced settlement and have some mechanism that allocates some of the yield to shorts when SmartCoin or Dreamcoin demand in this case, is above the peg.)

Thanks, I was hoping someone would do an analysis like this.

A more detailed analysis would examine typical order books and try to model what the incremental change in BTS price would be as they are taken off the order book to make Sumos.

Naturally, other market effects would be superimposed on the steady state effect, but those wiggles get damped out by the whale only buying when the price  is below the nominal ramp.

Now, I wonder how to calculate what the nominal ramp should be.

Are there diminishing returns for each new Sumo coined?

If the combined value of all BTS accumulated tends to reliably grow significantly beyond the combined price paid for them you would think that is a good place for a whale to put some of her existing revenues.  Especially if the whale has additional plans for what could be done building an ecosystem on such a currency.

The extent to which the whale could later exit would be the extent to which other speculators join her on the treadmill.

All we need is someone who is smaaaarter than the average whale...

I'm sure there will be demand for smartcoins that track people's native currencies.

But the Sumo/Maxo are for people who want to flee to safety and have a way to save and earn.
That's a whole different market.