Their profit model is that of bitcoin, asset appreciation.
100% of revenue is paid to miners.
A *more* important question for them is will it be more profitable to implement BitShares on top of Ethereum or with its own chain? As a developer building a new DAC I would have to conclude I could lower expenses and increase revenue and decentralization by building my own chain. One time development costs are nothing compared to the life time a DAC is designed to operate an the value of that DAC.
I agree with the latter.
100% of revenue is paid to miners.
You are right from a labor theory of value standpoint In the end most people profit form price increase due to demand increase due to (potential) usability.
But I dont get the ROI model. Bitcoin has stepped up to be a currency for day to day transactions and a store of value (right now mostly valued because of its network strength). But ethereum advertises itself with being just a base layer so no services like bitcoin (basic money transfer) so there would be no value if nothing i built upon it. How do they want to avoid that I come along build on it and dont let ether holders profit from it? And how could I let the ether holders profit from it?
bytemaster, are you sure the system doesn't allow to have a separate chain but still using it/building upon it?
They can answer it, if they can prove that to implement Bitshares on top of ethereum and share the common metacoin with the other DACs such as third-party brand DomainShares (just for example) would make it more competitive than to implement on its own chain and own metacoin. And may the absence of distributed HTTP protocol be the reason?
And this will also answer another question: Why it will be more competitive to implement on ethereum than a copycat of it (let's say, ethereum_2, ethereum_3)?
Ethers do be precious. Ethereum is not just a metacoin. It's also used to drive the contracts( machines that executes the bytecodes). So the need for ether will surely increase, What I don't understand is: Who will execute the bytecodes? In other words, who are the contracts?
And I think one of the problems of ethereum is that: the blockchain will be dumped all by similar bytecodes repeatedly.
Is there some misunderstanding I took?