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General Discussion / Re: Why BitShares isn't Taking off and What we are doing about it.
« on: April 14, 2015, 12:26:13 am »From what you all tell me of Dark, it looks like they are supporting their price NuBits style, offering interest to encourage holding. As long as the interest rate is above the long-term price decline everyone holding is breaking even.
I got to thinking about why it is so hard to bootstrap a business in crypto and it is because NEW investors are always bailing out OLD investors which sucks up all of the capital. We can easily resolve all of this by placing unclaimed BTS from delegates INTO a yield fund for BTS holders. Having a yield fund would encourage people to move their money off of exchanges and to hold it for longer periods of time.
The side effect of a yield fund is that it wouldn't actually debase ANYONE except those who are looking to cash out short term. IE: transfer of value from those who want short term liquidity to those who are in this for the long run.
In effect YIELD == DRK model. Whether or not this is a good idea remains to be seen.
I mentioned this once in the forums but nobody listened. It needs to be at least 5% interest per year, more would be better. Anything lower and you will not attract many investors.
In the code you should make it possible that the longer you keep it in your wallet, the more interest you earn. You get paid every week interest. This encourages holding. Once the price moves up, naturally people will start to sell.