The consequence of global settlement already applies to bitasset holders; their held bitassets have depreciated significantly in value & they cannot be settled for the correct accurate value. Fixed feeds are not normal prices.
You misundertand something or not undertand something.
A bitasset is just like a country, now you shut down it, kill all the debtor(incloud healthy debtor), people will choose to run away, no liquidity output, just make matters worse.
Global settlement is a very failed mechanism, it has been proved by the reality.
We should or must make a more better mechanism.
People are already running away from bitassets because they're SCAMS in their current state. Global settlement would have retained some resemblance of credibility, now BSIP76 proponents have zero credibility.
Fact is the bitassets are dead scamcoins, move onto new smartcoins which haven't been destroyed by loser gamblers.
Let's don't talk about the "scam" or something, focus on the topic.
Global settlement:
Bitbtc is already in Global settlement, let's check:
Reviving
Auto Revive Price (without/with bids) 0.00004230 bitBTC/BTS / 0.00003467 bitBTC/BTS
Price Feed: 0.00000258 bitBTC/BTS
DEX Market price: 0.00000903 bitBTC/BTS
Force Settlement Price: 0.00002417 bitBTC/BTS
CEX price: 0.00000258 bitBTC/BTS
so...this is the problem, everyone had lost the motivation.
Market liquidity and confidence had lost.
Bitbtc holders and debtors were developing into a lose-lose situation.
Only hope is waiting the price rising.
BSIP76 has the same situation like Global settlement.
Market liquidity and confidence had lost.
lose-lose.
Only hope is waiting the price rising.
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Why can't we isolate the bad debts(which the Collateral Ratio <1), use the bonds and income of bitasset to handle it?
1. feed price still will be normal;
2. still can pledge;
1 and 2 will provide the motivation and liquidity
3. The hope will not only is waiting the price rising.