BitShares Forum
Main => General Discussion => Topic started by: carpet ride on July 06, 2014, 02:58:32 am
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Can anyone that answers 'Yes.' explain why?
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The only thing a delegate can do is to not include some transactions on his turn in one round, I think, the next delegate will probably include them.
And if he choose not to produce block, that will hurt his benefit as the role of delegate. And he can not know his turn in next round.
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Every delegate has an average of 51 block advanced notice on when they will produce a block.
When it comes time to produce a block, they can exclude transactions of others or introduce new transactions never before seen.
This gives delegates an opportunity to optimize their bids/asks to get the best possible value on their turn.
That said they only get ONE trade per block and thus are greatly restricted in how much volume they can trade. The market making algorithm is designed to encourage all players to think in terms of value and not noise trading.
Statistical analysis / observation of the transactions included in blocks produced by a delegate will let everyone know if they are attempting to squeeze some extra profits out of the market. However, there is no financial incentive to do so because the fees are already paid to the delegates in the first place. So a delegate cannot gain more on average by introducing their own transactions than they would be receiving in delegate pay.
The difference between the highest bid and lowest ask (when they overlap) is collected by the network as fees, fees are then paid to delegates. Thus the most a delegate could hope to do is produce bids or asks that take advantage of the spread and thus collect the fees that would be going to them anyway.