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Main => General Discussion => Topic started by: Stan on November 27, 2015, 01:44:04 am

Title: Fee Backed Assets (FBA)
Post by: Stan on November 27, 2015, 01:44:04 am
We're all familiar with counterparty free
Market Pegged Assets (MPA)
and
issuer backed
User Issued Assets (UIA).

Theoretically, there could be a third type: 
Fee Backed Assets (FBA).

A developer installs a new function that charges fees for its service and pays those fees to holders of a UIA she creates for that purpose.

She naturally starts out as the owner of those revenue producing assets.

She is free to sell them since each one is a revenue generating counterparty free asset backed solely by the blockchain.

Since they have no counterparty, they are not a security.  They are simply capital equipment, like selling a mining machine.

This new kind of digital asset trades like any of the others but has fascinating new properties.

There could be a new asset for every new revenue generating feature in the whole ecosystem.  Developers recoup their costs by selling (or pre-selling) these revenue generating software devices (or keeping them to earn the revenue they produce.)

Thoughts?



Title: Re: Fee Backed Assets (FBA)
Post by: lzr1900 on November 27, 2015, 01:53:07 am
where is your big thing?epic?secret sauce?amazing summer?
Title: Re: Fee Backed Assets (FBA)
Post by: rgcrypto on November 27, 2015, 02:26:06 am
We're all familiar with counterparty free
Market Pegged Assets (MPA)
and
issuer backed
User Issued Assets (UIA).

Theoretically, there could be a third type: 
Fee Backed Assets (FBA).

A developer installs a new function that charges fees for its service and pays those fees to holders of a UIA she creates for that purpose.

She naturally starts out as the owner of those revenue producing assets.

She is free to sell them since each one is a revenue generating counterparty free asset backed solely by the blockchain.

Since they have no counterparty, they are not a security.  They are simply capital equipment, like selling a mining machine.

This new kind of digital asset trades like any of the others but has fascinating new properties.

There could be a new asset for every new revenue generating feature in the whole ecosystem.  Developers recoup their costs by selling (or pre-selling) these revenue generating software devices (or keeping them to earn the revenue they produce.)

Thoughts?
I think this could be attract devs like bees to honey.

I believe the feature should remain open source.
Title: Re: Fee Backed Assets (FBA)
Post by: Bitcoinfan on November 27, 2015, 02:27:39 am
I hope you guys are finally coming around to what I've been probing you guys on.  Of course I think inevitability this Fee Backed Asset will have to be used.  Augur is one of the first to do this in the Bitcoin 2.0 iterations.  Can Bitshares follow the same act succesfully?

Flashback:

This is very long, but I think a very good discussion question to see how BM, Stan, and Dev Core are approaching the referral system.  I think it has great potential.  But I see the referral system having more longwithstanding success if smart contract developers can earn referral fees for the contracts they make.  My concern is in the long-run, initial referrers don't provide innovative developments as much as developers do.  Referrers can just squat on the capital effort that brought them all the users in the first place and still earn fees without providing any new value-add as compared to a developer.  They in some ways get the public to squat as many accounts as they can for them.  At least that's one way this would work. 

Last week BM spoke about specialized contracts being made for BTS.  This will allow curation and through testing and takes a "soft update" each time.  And afterwards, Cryptosile brought up a good idea that I've been pondering myself.  In one of the posts he asks:

https://bitsharestalk.org/index.php/topic,17801.0.html
"I'm curious if we could provide these two things:
1.  Allow a specific smart contract to pay 10% of fees to the creator of said smart contract.
  - This would incentivize a lot of developers to submit smart contracts and compete for inclusion into the blockchain."

To me this would spur use of smart contracts, experimentation and new products for the general public.  Sure it would be in the interest of the first referrers to create new types of contracts.  But I see this as further incentivizing development on the Bitshares blockchain and bring tools and smartcoin programs that mesh in the bitshares network.  A pie in the sky hypothetical example: someone wants to build a decentralized Uber on Bitshares can do so and profit.   But in short, incentives and rewards are further brought together.

Not to mention it would allow the little guy to profit for bringing something new to do table.  He will be able to build a  better business model to compete with the veterans and not be squatted out like the current method has it. 

Is this something that is currently being discussed or considered?  Do you think this is feasible or even possible for Bitshares under the current structure of the referral system?
Title: Re: Fee Backed Assets (FBA)
Post by: luckybit on November 27, 2015, 02:35:16 am
Featureshares?
Title: Re: Fee Backed Assets (FBA)
Post by: luckybit on November 27, 2015, 02:37:13 am
I hope you guys are finally coming around to what I've been probing you guys on.  Of course I think inevitability this Fee Backed Asset will have to be used.  Augur is one of the first to do this in the Bitcoin 2.0 iterations.  Can Bitshares follow the same act succesfully?

Flashback:

This is very long, but I think a very good discussion question to see how BM, Stan, and Dev Core are approaching the referral system.  I think it has great potential.  But I see the referral system having more longwithstanding success if smart contract developers can earn referral fees for the contracts they make.  My concern is in the long-run, initial referrers don't provide innovative developments as much as developers do.  Referrers can just squat on the capital effort that brought them all the users in the first place and still earn fees without providing any new value-add as compared to a developer.  They in some ways get the public to squat as many accounts as they can for them.  At least that's one way this would work. 

Last week BM spoke about specialized contracts being made for BTS.  This will allow curation and through testing and takes a "soft update" each time.  And afterwards, Cryptosile brought up a good idea that I've been pondering myself.  In one of the posts he asks:

https://bitsharestalk.org/index.php/topic,17801.0.html
"I'm curious if we could provide these two things:
1.  Allow a specific smart contract to pay 10% of fees to the creator of said smart contract.
  - This would incentivize a lot of developers to submit smart contracts and compete for inclusion into the blockchain."

To me this would spur use of smart contracts, experimentation and new products for the general public.  Sure it would be in the interest of the first referrers to create new types of contracts.  But I see this as further incentivizing development on the Bitshares blockchain and bring tools and smartcoin programs that mesh in the bitshares network.  A pie in the sky hypothetical example: someone wants to build a decentralized Uber on Bitshares can do so and profit.   But in short, incentives and rewards are further brought together.

Not to mention it would allow the little guy to profit for bringing something new to do table.  He will be able to build a  better business model to compete with the veterans and not be squatted out like the current method has it. 

Is this something that is currently being discussed or considered?  Do you think this is feasible or even possible for Bitshares under the current structure of the referral system?

Market based innovation, if people can profit from successful features in the form of fees then it definitely helps Bitshares become more adaptable over time. More importantly it promotes innovation.

Title: Re: Fee Backed Assets (FBA)
Post by: ebit on November 27, 2015, 02:47:59 am
 +5%
Title: Re: Fee Backed Assets (FBA)
Post by: complexring on November 27, 2015, 04:58:00 am
this seems like a natural outflow of the discussion that's been going on with regards to how to fund various features, in particular, the thread about implementing stealth transactions and a private investor willing to take the risk.

one of the ideas proposed, or at least how i understood it, was creating a worker proposal that states that a UIA and the funds the sales of this UIA would be used to pay the developer for a particular feature.  see :  https://bitsharestalk.org/index.php/topic,20207.0.html .

what stan proposes is essentially the a sophisticated version of this idea, marketed with a pretty bow (not to say that we shouldn't consider marketing when presenting ideas), but presented as his own. 

essentially, features that we want developed can be funded by fee backed assets, and over time provide income by charging shareholders who use such features. those who invest and own said fba's profit.

great.  i approve (minus certain parts, which i hope are clear).

the reference to the origins of this idea (or at least when i first encountered it) actually included in this post.
Title: Re: Fee Backed Assets (FBA)
Post by: donkeypong on November 27, 2015, 05:08:25 am
Very cool.

(http://i.imgur.com/OeFd559.gif)
Title: Re: Fee Backed Assets (FBA)
Post by: Empirical1.2 on November 27, 2015, 05:14:55 am
one of the ideas proposed, or at least how i understood it, was creating a worker proposal that states that a UIA and the funds the sales of this UIA would be used to pay the developer for a particular feature.  see :  https://bitsharestalk.org/index.php/topic,20207.0.html .

what stan proposes is essentially the a sophisticated version of this idea, marketed with a pretty bow (not to say that we shouldn't consider marketing when presenting ideas), but presented as his own. 

essentially, features that we want developed can be funded by fee backed assets, and over time provide income by charging shareholders who use such features. those who invest and own said fba's profit.

the reference to the origins of this idea (or at least when i first encountered it) actually included in this post.

Yes it's a good idea. I came up with a similar base concept a while ago but didn't receive any replies at the time.

Revenue sharing model to allow crowdfunding major BTS blockchain additions

BTS could potentially enjoy major blockchain improvements without having to pay for them or take the risk that they are duds by creating a revenue sharing model that incentivises external developers and investors.

Edit: Well Bitcoinfan also came up with stuff in that vein.

Personally I think blockchain based gambling is the area that's going to kickstart the revenue sharing DAC boom. So I see Augur sports betting as having a big future. Also I imagine in a few years most dice sites/gambling sites will be blockchain based too. (Using revenue sharing + referral programme + advantages of decentralization - No hit and run/seizures, provably fair, cheaper, currency stable.)

Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 27, 2015, 05:30:06 am
We're all familiar with counterparty free
Market Pegged Assets (MPA)
and
issuer backed
User Issued Assets (UIA).

Theoretically, there could be a third type: 
Fee Backed Assets (FBA).

A developer installs a new function that charges fees for its service and pays those fees to holders of a UIA she creates for that purpose.

She naturally starts out as the owner of those revenue producing assets.

She is free to sell them since each one is a revenue generating counterparty free asset backed solely by the blockchain.

Since they have no counterparty, they are not a security.  They are simply capital equipment, like selling a mining machine.

This new kind of digital asset trades like any of the others but has fascinating new properties.

There could be a new asset for every new revenue generating feature in the whole ecosystem.  Developers recoup their costs by selling (or pre-selling) these revenue generating software devices (or keeping them to earn the revenue they produce.)

Thoughts?

My initial thought is that the liability then is in the hands of the issuer. Those that are buying are buying it with the expectation of future profit and therefore is issuing a type of security.

Perhaps the dev is in a country where this might not be the case.. but then it gets dicey in regards to who buys it where.

I think you have to remove 'she' from the equation, and let it be decentralized. She can create the FBA, set the price per share, and issue it.. and when that's done that's done. It moves to committee-member control. It can either be fully bought up and funded by the maker, or the market is open to buy it.

I think the key element here is that once the FBA is created, it really belongs to the blockchain after that. This removes all liabilities in my estimation as far as offering securities is concerned.

Thoughts?
Title: Re: Fee Backed Assets (FBA)
Post by: complexring on November 27, 2015, 06:10:37 am
one of the ideas proposed, or at least how i understood it, was creating a worker proposal that states that a UIA and the funds the sales of this UIA would be used to pay the developer for a particular feature.  see :  https://bitsharestalk.org/index.php/topic,20207.0.html .

what stan proposes is essentially the a sophisticated version of this idea, marketed with a pretty bow (not to say that we shouldn't consider marketing when presenting ideas), but presented as his own. 

essentially, features that we want developed can be funded by fee backed assets, and over time provide income by charging shareholders who use such features. those who invest and own said fba's profit.

the reference to the origins of this idea (or at least when i first encountered it) actually included in this post.

Yes it's a good idea. I came up with a similar base concept a while ago but didn't receive any replies at the time.

Revenue sharing model to allow crowdfunding major BTS blockchain additions

BTS could potentially enjoy major blockchain improvements without having to pay for them or take the risk that they are duds by creating a revenue sharing model that incentivises external developers and investors.

Edit: Well Bitcoinfan also came up with stuff in that vein.

...


thx for the earlier reference.  difficult to track the origins of something, especially in this forum.  cheers!
Title: Re: Fee Backed Assets (FBA)
Post by: cube on November 27, 2015, 06:31:49 am
My initial thought is that the liability then is in the hands of the issuer. Those that are buying are buying it with the expectation of future profit and therefore is issuing a type of security.

Perhaps the dev is in a country where this might not be the case.. but then it gets dicey in regards to who buys it where.

I think you have to remove 'she' from the equation, and let it be decentralized. She can create the FBA, set the price per share, and issue it.. and when that's done that's done. It moves to committee-member control. It can either be fully bought up and funded by the maker, or the market is open to buy it.

I think the key element here is that once the FBA is created, it really belongs to the blockchain after that. This removes all liabilities in my estimation as far as offering securities is concerned.

Thoughts?

I think a security is a security no matter how you dress it up.  And there is no point dragging in the committee members to front the deal.  If you want to stay out of trouble with the law, look at how kickstarter works. 
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 27, 2015, 07:02:46 am
My initial thought is that the liability then is in the hands of the issuer. Those that are buying are buying it with the expectation of future profit and therefore is issuing a type of security.

Perhaps the dev is in a country where this might not be the case.. but then it gets dicey in regards to who buys it where.

I think you have to remove 'she' from the equation, and let it be decentralized. She can create the FBA, set the price per share, and issue it.. and when that's done that's done. It moves to committee-member control. It can either be fully bought up and funded by the maker, or the market is open to buy it.

I think the key element here is that once the FBA is created, it really belongs to the blockchain after that. This removes all liabilities in my estimation as far as offering securities is concerned.

Thoughts?

I think a security is a security no matter how you dress it up.  And there is no point dragging in the committee members to front the deal.  If you want to stay out of trouble with the law, look at how kickstarter works.

I didn't suggest they front it.. I suggested once someone submitted it it would be passed on to them.

I think the committee is the ideal fit.. just like MPAs, FBAs are part of the network. Committee are there to oversee those things. There wouldn't really be anything for the committee to do though, except make adjustments to the fees when there was a need to do so.

Otherwise we run the risk of account abandonment (centralized issue). What if whom ever controls that account just disappeared for whatever reason? Now we got an FBA locked into the network that we can't do anything about.

Kickstarter doesn't stay out of trouble. It is regulated with all kinds of laws surrounding crowdfunding. Likewise, securities are regulated.. and this is no different.

Decentralizing the FBA is the only way to make it sustainable long term.

My 2 BTS. :)
Title: Re: Fee Backed Assets (FBA)
Post by: Akado on November 27, 2015, 10:00:58 am
How does this fit into a discussion people had a long time ago, where smart contracts would be created to each feature developer would earn from each feature they would implement? Maybe I'm confusing things? I don't know why the dev would need to sell those assets created from fees, when fees could just be paid in BTS and he could just get part of the fees.

That way people would have one more incentive to develop stuff. Referral program + earning from each use of their feature.

Don't know why there's the need to create a FBA when BTS can be used already to simplify things. And would give BTS more importance instead of splitting money through countless different assets.

This would be the same as when people buys apps on the playstore or apple store
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 27, 2015, 02:42:19 pm
How does this fit into a discussion people had a long time ago, where smart contracts would be created to each feature developer would earn from each feature they would implement? Maybe I'm confusing things? I don't know why the dev would need to sell those assets created from fees, when fees could just be paid in BTS and he could just get part of the fees.

That way people would have one more incentive to develop stuff. Referral program + earning from each use of their feature.

Don't know why there's the need to create a FBA when BTS can be used already to simplify things. And would give BTS more importance instead of splitting money through countless different assets.

This would be the same as when people buys apps on the playstore or apple store

I think this is springing out from market demand. Sure the other ways are possible.. but it seems to be of less interest. This all seems to be in response to what the market wants.
Title: Re: Fee Backed Assets (FBA)
Post by: complexring on November 27, 2015, 03:31:17 pm

How does this fit into a discussion people had a long time ago, where smart contracts would be created to each feature developer would earn from each feature they would implement? Maybe I'm confusing things? I don't know why the dev would need to sell those assets created from fees, when fees could just be paid in BTS and he could just get part of the fees.

That way people would have one more incentive to develop stuff. Referral program + earning from each use of their feature.

Don't know why there's the need to create a FBA when BTS can be used already to simplify things. And would give BTS more importance instead of splitting money through countless different assets.

This would be the same as when people buys apps on the playstore or apple store

what a fba does is allow for a better recording mechanism for those who wish to pay devs for implementing a particular feature and automatically pay out rewards to holders of a fba.  it's not so much that bts already is capable of doing this, but rather there are additional functions that are needed to simplify the bookkeeping.

so, instead of having a single entity be the private investor who reaps the rewards for funding a feature, the community that owns the fba is.  the parameters of the fba can then be adjusted accordingly and the fees collected from said feature are then used to pay back all holders of the fba, i.e. current investors of a feature, and eventually allows them to profit as the feature is continued to be used.

the risk, and the reward, are now community based, as opposed to a single entity, by those who wish to see certain features implemented immediately, or whom think they will have long-term value.
Title: Re: Fee Backed Assets (FBA)
Post by: Stan on November 27, 2015, 03:49:08 pm
There are lots of different business models that will get the job done.

Pick one that doesn't violate any of the tests that governments routinely use to determine if something is a security.

I'm intrigued by the applicability of the Uber model for a privately operated taxi.

Build 100 robotic software taxi cabs that deliver private packages for hire.
Program them via blockchain logic to take turns delivering packages.
Sell the cabs to the network in exchange for a set of tickets good for rental minutes on a cab.
Resell/trade those tickets on the open market.
This way, anyone can rent time on any of the limited supply of "cabs" and earn fees for performing delivery services.

So the STEALTH FPA could represent all available minutes on a network-owned fleet of robotic taxi cabs.

Buy up as many minutes of their time as you want and you have your own revenue generating business with no counter parties.

Meanwhile, the GUI for doing STEALTH transfers doesn't need to reflect any details at all about how the transfers are taking place metaphorically under the hood, whether by robotic cab or C++ function call.  They just specify the amount and destination and pay the fee and their funds are automagically teleported somewhere else. 

Poof!

Title: Re: Fee Backed Assets (FBA)
Post by: luckybit on November 27, 2015, 03:59:35 pm
There are lots of different business models that will get the job done.

Pick one that doesn't violate any of the tests that governments routinely use to determine if something is a security.

I'm intrigued by the applicability of the Uber model for a privately operated taxi.

Build 100 robotic software taxi cabs that deliver private packages for hire.
Program them via blockchain logic to take turns delivering packages.
Sell the cabs to the network in exchange for a set of tickets good for rental minutes on a cab.
Resell/trade those tickets on the open market.
This way, anyone can rent time on any of the limited supply of "cabs" and earn fees for performing delivery services.

So the STEALTH FPA could represent all available minutes on a network-owned fleet of robotic taxi cabs.

Buy up as many minutes of their time as you want and you have your own revenue generating business with no counter parties.

Meanwhile, the GUI for doing STEALTH transfers doesn't need to reflect any details at all about how the transfers are taking place metaphorically under the hood, whether by robotic cab or C++ function call.  They just specify the amount and destination and pay the fee and their funds are automagically teleported somewhere else. 

Poof!

@Stan I think what we need is for you or someone like you to create a document, pamphlet, or file, which can be passed around, where people can see some examples of business ideas which can be started on Bitshares using the FBA. I think what potential entrepreneurs need right now is inspiration and ideas.

I'll put an idea out there. Why doesn't someone develop a Bitshares computer? The most secure computer design, tamper resistant, storage in the cloud? Simply take the design from: https://www.kickstarter.com/projects/designshift/orwl-the-first-open-source-hardened-computer

And modify it to have Bitshares and associated apps pre-loaded. Work with Cryptonomex on it so that witnesses can use this computer in some unique ways. Sell the Bitshares computer and reward by letting fees go to holders.



Title: Re: Fee Backed Assets (FBA)
Post by: TravelsAsia on November 28, 2015, 04:00:17 am
Would you be able to have funds automatically returned if a minimum isn't reached? For example, LottoShares could say if 150,000 worth of investment is not reached in 60 days, return funds to original sender.
Title: Re: Fee Backed Assets (FBA)
Post by: onceuponatime on November 28, 2015, 04:18:00 am
Would you be able to have funds automatically returned if a minimum isn't reached? For example, LottoShares could say if 150,000 worth of investment is not reached in 60 days, return funds to original sender.

This was my thought for how that would work in the STEALTH asset sale (remembering that I will have prepaid for the development and proceeds from sale reimburse me for that):

6. If not all of the shares offered to the community sell, then the remainder of the shares will be forwarded to me. There is therefore no question of "If they don’t all sell, offer to buy them back at the set price - i.e. refund them." They all sell by default.
Title: Re: Fee Backed Assets (FBA)
Post by: lovejoy on November 28, 2015, 07:41:44 am
I really like this line of thinking, and I'm curious to see it evolve.  It is a huge development for development and we need to arrive at a generally agreed upon elegant solution.

One thought I had: If a committee controlled account is not involved in the issuance of said FBA somehow... it would be wise to create a multi-sig mechanism to guard against various unfortunate events which could occur, such that should an issuer of the FBA die, or lose their owner key, or become compromised somehow, all would not be lost.  The issuer could choose a number of trusted parties with whom to vouchsafe control over the FBA.  There's probably a really uncomplicated way to achieve this, conceptually it makes sense to me, not sure of the best mechanics.  Food for thought.
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 28, 2015, 07:58:59 am
There are lots of different business models that will get the job done.

Pick one that doesn't violate any of the tests that governments routinely use to determine if something is a security.

I'm intrigued by the applicability of the Uber model for a privately operated taxi.

Build 100 robotic software taxi cabs that deliver private packages for hire.
Program them via blockchain logic to take turns delivering packages.
Sell the cabs to the network in exchange for a set of tickets good for rental minutes on a cab.
Resell/trade those tickets on the open market.
This way, anyone can rent time on any of the limited supply of "cabs" and earn fees for performing delivery services.

So the STEALTH FPA could represent all available minutes on a network-owned fleet of robotic taxi cabs.

Buy up as many minutes of their time as you want and you have your own revenue generating business with no counter parties.

Meanwhile, the GUI for doing STEALTH transfers doesn't need to reflect any details at all about how the transfers are taking place metaphorically under the hood, whether by robotic cab or C++ function call.  They just specify the amount and destination and pay the fee and their funds are automagically teleported somewhere else. 

Poof!

Yes.. thats what I am talking about!

For housekeeping on the FBA it would just be something he committee can vote to make changes as needed.

I think perhaps initially though in the creation of an FBA.. having it available the same way other assets can be created might not be ideal..

I think an FBA Proposal needs to be submitted first.. make clear the parameters of what it is how it works etc.. then once that is all clear submit it to the committee to create it. If the committee members .. they can then vote to have it enabled.

At that point the market comes online and people can buy at the rate that was set to fund the feature, and the monies collected to complete the work go into the developers bts account specified in the proposal.

Once the initial supply is sold off the developers BTS account is no longer recipient.. and only holders of the FBA actually receive payments from the transactions.

If future development or improvements need to be made a 'maintenance' proposal can be submitted that would then have more shares made of the FBA to fund it.. people will be able to buy up those shares to fund it and gain more shares of the profit.. or not participate in its development and become diluted. All fair.

All licensing associated with this format is optional according to the dev/creators specifications.

This to me would provide all the checks and balances in the process and keep it decentralized and without liability to holders.

Hope I have explained this clearly enough.

Anyone see some other way that might simplify this without compromising checks and balances or introducing liabilities?
Title: Re: Fee Backed Assets (FBA)
Post by: Samupaha on November 28, 2015, 10:04:44 am
One thought I had: If a committee controlled account is not involved in the issuance of said FBA somehow... it would be wise to create a multi-sig mechanism to guard against various unfortunate events which could occur, such that should an issuer of the FBA die, or lose their owner key, or become compromised somehow, all would not be lost.  The issuer could choose a number of trusted parties with whom to vouchsafe control over the FBA.  There's probably a really uncomplicated way to achieve this, conceptually it makes sense to me, not sure of the best mechanics.  Food for thought.

What if the owner dies or loses the owner key? That would be their loss, of course, but it would also affect Bitshares.

Let's say there were a feature that charged 50 cents per transaction, and 10 c of that went to Bitshares and 40 c to owners of the FBA. If the FBA owners lost somehow the control of the FBA, then they wouldn't have anymore any incentive to market or improve the feature. Users would be paying 40 c per transaction extra for every transaction for nothing.

There are some ways to address this problem:
- Bitshares could just copy the feature (by worker) and charge only 10 c per transaction. Users would switch to use that because it was cheaper.
- Somebody else could copy the feature and issue a new FBA for it, and BTS owners would accept this because now there were somebody who had right incentives.
- FBA had to be "activated" occasionally, like every six months. If it weren't activated, it would lose the ability to get revenue from users of the feature. If somebody lost his owner keys, this would automatically deactivate his FBA. After this happening, the rest of the FBAs would be more valuable because they would get more royalties. This way the rest of the FBA owners would have incentives to market and improve the feature. If all FBAs became deactivated, their share of the transaction cost would be set to zero and users would only pay the BTS share of the cost , 10 c in this case.

I think perhaps initially though in the creation of an FBA.. having it available the same way other assets can be created might not be ideal..

I think an FBA Proposal needs to be submitted first.. make clear the parameters of what it is how it works etc.. then once that is all clear submit it to the committee to create it. If the committee members .. they can then vote to have it enabled.

I'm assuming we are talking here about features that will require a hardfork. So if there is going to be a hardfork, there will be also a worker proposal. I think it would be best occasion to issue FBA. If the worker contract is fully funded, the FBA will be issued automatically. FBA owners start to get revenue once the feature is implemented on the blockchain.
Title: Re: Fee Backed Assets (FBA)
Post by: santaclause102 on November 28, 2015, 02:16:14 pm
Great idea. @Stan do I understand you right, that all those features with their "feature coins" have to be approved by the shareholders still?
I assume yes. How should it work differently in Bitshares currated apps model...
So it could be that dev1 gets feature 1.1 approved (e.g. stealth tx). Then dev2 gets feature 1.2 (ring sign) approved. Then comes 1.3... With 1.3 shareholders decide to take 1.1. and 1.3 out again (not anymore part of the bitshares code).
That would be a possible cenario right?
Just thinking out loud a bit...
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 28, 2015, 03:01:14 pm
Great idea. @Stan do I understand you right, that all those features with their "feature coins" have to be approved by the shareholders still?
I assume yes. How should it work differently in Bitshares currated apps model...
So it could be that dev1 gets feature 1.1 approved (e.g. stealth tx). Then dev2 gets feature 1.2 (ring sign) approved. Then comes 1.3... With 1.3 shareholders decide to take 1.1. and 1.3 out again (not anymore part of the bitshares code).
That would be a possible cenario right?
Just thinking out loud a bit...

In how I further described the process it requires no approval by the community. It's done through the committee members. Every FBA should have the opportunity for fight or flight based on its own merits. Prior to issuing an FBA the committee holds the vote to determine if the FBA was done with due diligence. I thought about having it run through the Worker proposal for this function, but then we are back to community members at large voting down features that they 'feel' is not important or should not be focused on. The beauty and point of the FBA is that if an entity or people are willing to invest their own money to create something then it should be give the opportunity by those that want to see it succeed.

I maybe wrong on this point though. I think once the feature is done I think it would have to still be submitted as a Worker with no charge for the community at large to vote on it. So maybe having the initial creation process begin as a Worker that doesn't take any funds so the community can vote on support for it would allow everyone to further validate it via the blockchain prior to its creation. That just gave me an idea.... here it comes..

What if the FBA that is created and issued into the market for sale for funding, all the funds will be submitted into the RESERVE POOL (same pool that Worker Funds come from) and inside of Worker pay methods there is a new type of Worker pay method that can be paid via the FBA supporting the feature?

This means that the payout mechanism to the developer or project manager handling the dev and implementation of the new feature gets paid through the same Worker area, only the funds are coming from the FBA initial sale. I would suggest that this payout feature does not start to payout until the FBA has been fully funded (ie all share supply sold).

A 3rd party escrow/project QA (like what we are doing for Cryptonomex worker) could ensure the developers are paid according to the budget and remaining funds can then go back to the reserve.

A wish list item might be to have the FBA created be able to have the initial funding specified in the Asset of choice. In other words if someone says it will cost 20,000 CNY to get done, then the sale of the FBA Asset wlll be in CNY and passed through to the Worker as such. This to me will eliminate some market variable waste, and also help the project managers/developers with their own tax reporting/accounting.

I like this method better.. it will keep our funding method for new features in the same place under Worker.

In the end though, the FBA is STILL going to be assigned to the committee members for ongoing maintenance. I would also urge that the terms of the initial FBA in regards to income spits and terms in points be burned into the blockchain itself, with reference to some place like github where all historical versioning is recorded regarding the feature.

THIS to me will continue to work under all conditions worldwide no matter how regulatory changes come an from where. This is a coop type of funding and return that has checks and balances and no one liability source in any levels. The only liability is at on the project manager and/or developers at the time of creation to deliver. After that they have just done a job and they are done.

THIS IS AWESOME!
Title: Re: Fee Backed Assets (FBA)
Post by: rgcrypto on November 28, 2015, 04:33:40 pm
In the case of STEALTH for example, the distribution of fees could be:

20% goes to the network
20% in a multisig account for maintenance, upgrade or development on related products
60% goes to holders of the FBA...paid daily in BTS.  8)

This way, the feature can keep on improving and extend it's product line in order to become more and more profitable.

Title: Re: Fee Backed Assets (FBA)
Post by: Samupaha on November 28, 2015, 04:35:59 pm
In how I further described the process it requires no approval by the community. It's done through the committee members. Every FBA should have the opportunity for fight or flight based on its own merits. Prior to issuing an FBA the committee holds the vote to determine if the FBA was done with due diligence. I thought about having it run through the Worker proposal for this function, but then we are back to community members at large voting down features that they 'feel' is not important or should not be focused on. The beauty and point of the FBA is that if an entity or people are willing to invest their own money to create something then it should be give the opportunity by those that want to see it succeed.

Approval from committee members isn't enough, it has to be worker proposal. Or we could create new kind of worker proposal that is meant only for FBAs. But the point is that if the new feature will require a hardfork, it should be approved by the shareholders. Just like it is now.

I don't think that the problem of shareholders voting down FBA-proposals will last very long. It is problem only for a short period when only party that has enough skills and knowledge is Cryptonomex. When there are other developers who can be hired to implement features, they will be voted in without any problems because they don't consume any manpower from more important features that are funded by DAC.

What if the FBA that is created and issued into the market for sale for funding, all the funds will be submitted into the RESERVE POOL (same pool that Worker Funds come from) and inside of Worker pay methods there is a new type of Worker pay method that can be paid via the FBA supporting the feature?

I think this is too limiting way for funding. Remember, we are trying to get privatized funding here. There can be many different kind of developers, companies, investors and crowdfunders and not all of them are interested in having the funding go through reserve pool. Simpler way is just to give them the FBA and they can do whatever they think is best and suitable for their business plan.

A wish list item might be to have the FBA created be able to have the initial funding specified in the Asset of choice. In other words if someone says it will cost 20,000 CNY to get done, then the sale of the FBA Asset wlll be in CNY and passed through to the Worker as such. This to me will eliminate some market variable waste, and also help the project managers/developers with their own tax reporting/accounting.

I like this method better.. it will keep our funding method for new features in the same place under Worker.

This is not only and maybe not even preferable way for funding. I predict that there will be lots of complaining in this kind of contracts. Crowdfunders want a feature and somebody says "yeah, I'll do it for 20k" and after a while they announce that "20k isn't enough, I want more".

I think easier way would be that a company or a group of developers make the feature half way ready and then announce that "we have a new feature and if you want it implemented in Bitshares, we want in exchange an FBA with these parameters". BTS shareholders don't need to know how much the feature cost to develop – all that we have to care is that will it be a good deal for Bitshares. Do we want that feature on the blockchain, how many users it could get, etc.
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 28, 2015, 08:22:58 pm
In how I further described the process it requires no approval by the community. It's done through the committee members. Every FBA should have the opportunity for fight or flight based on its own merits. Prior to issuing an FBA the committee holds the vote to determine if the FBA was done with due diligence. I thought about having it run through the Worker proposal for this function, but then we are back to community members at large voting down features that they 'feel' is not important or should not be focused on. The beauty and point of the FBA is that if an entity or people are willing to invest their own money to create something then it should be give the opportunity by those that want to see it succeed.

Approval from committee members isn't enough, it has to be worker proposal. Or we could create new kind of worker proposal that is meant only for FBAs. But the point is that if the new feature will require a hardfork, it should be approved by the shareholders. Just like it is now.

I don't think that the problem of shareholders voting down FBA-proposals will last very long. It is problem only for a short period when only party that has enough skills and knowledge is Cryptonomex. When there are other developers who can be hired to implement features, they will be voted in without any problems because they don't consume any manpower from more important features that are funded by DAC.

I agree.. that's where I started from and as my post continued I pushed the idea more towards it happening within the Worker space. However when it comes to managing the FBA ongoing, it really should be in the hands of the committee members just like MPAs. Otherwise we invite liabilities and other issues into this. The developers of the feature however are free to set the terms of licensing however they see fit. It's the coop setup of the whole thing that can introduce serious regulatory issues that can cause problems if not setup right. Thus you do not want a single person/company to be the holder of an FBA, you want it to be part of the decentralized network. In the end, if they want to profit from the introduction, they can always buy up as much of the FBA as they like when it gets created.

Only time committee members might need to manage an FBA would be to adjust the fees to compensate for market movement.. ie. BTS goes from 0.001 to 0.10 .. pretty sure the FBA holders would like to see some action taken on that.. and I envision this to become a regular part of committee member activity that would likely just shift all fees on a % scale easily to compensate with the market movement. This again should not be left to an individual for securities and liability reasons. We don't want a crowdfund.. we want a coop as far as how this works where regulations are concerned.

What if the FBA that is created and issued into the market for sale for funding, all the funds will be submitted into the RESERVE POOL (same pool that Worker Funds come from) and inside of Worker pay methods there is a new type of Worker pay method that can be paid via the FBA supporting the feature?

I think this is too limiting way for funding. Remember, we are trying to get privatized funding here. There can be many different kind of developers, companies, investors and crowdfunders and not all of them are interested in having the funding go through reserve pool. Simpler way is just to give them the FBA and they can do whatever they think is best and suitable for their business plan.

I think I may not have explained it clearly enough. The funds are going from the FBA sale into the reserve pool which is payout out for the Worker 1:1 with it's budget for the FBA project only after it has reached 100% of funding via the sale of the FBA initial shares issued. Anyone will be free to buy them on the DEX (though I think a better interface should be used for that initial sale). This uses our existing systems and prevents crowdfunder fraud transactions and keeps all the transactions coming from whomever is contributing coming through bitshares. It all stays on the blockchain. The payment might not need to go to the reserve pool actually though. Could just have the funds go directly to the Worker that created it. However a new mechanism would need to be created to either vest the balance until 100% funding is reached or some other parameter.

A wish list item might be to have the FBA created be able to have the initial funding specified in the Asset of choice. In other words if someone says it will cost 20,000 CNY to get done, then the sale of the FBA Asset wlll be in CNY and passed through to the Worker as such. This to me will eliminate some market variable waste, and also help the project managers/developers with their own tax reporting/accounting.

I like this method better.. it will keep our funding method for new features in the same place under Worker.

This is not only and maybe not even preferable way for funding. I predict that there will be lots of complaining in this kind of contracts. Crowdfunders want a feature and somebody says "yeah, I'll do it for 20k" and after a while they announce that "20k isn't enough, I want more".

I think easier way would be that a company or a group of developers make the feature half way ready and then announce that "we have a new feature and if you want it implemented in Bitshares, we want in exchange an FBA with these parameters". BTS shareholders don't need to know how much the feature cost to develop – all that we have to care is that will it be a good deal for Bitshares. Do we want that feature on the blockchain, how many users it could get, etc.

How good or bad the developers are will depend on the judgement of the community at large. I am rather confident they are going to be ruthless in their vetting. What you are arguing is exactly the same thing that can happen with Workers now. Has nothing to do with FBAs. If you have devs half way develop things before introducing them to the community they certainly can do that if they like.. I doubt you are going to have many developers take that risk though. It is far more likely that people interested in a particular feature are going to seek out dev resources on their own prior to rallying a fund together much like what you have seen happen with Stealth feature. Even if they start from forum and someone says they can do it for X amount like you said, the funders can decide how to handle that long before creating an FBA and perhaps ask the dev to do as you suggested in creating it half way on his/their own. That would/could all happen pre-FBA.

@rgcrypto mentioned division of funds. I agree with 20% going to the network. However, the accumulation of 20% for maintenance seems like a slush fund that is just going to be raided by.. who? Would it be enough for all those things?

I think its better to let the profits go to the funders.. have the 80% go full on to all holders.. they are free to buy and sell them as they wish in the market. If there is improvements or updates to be done it means another worker and more shares put out on that FBA feature. Existing holders can either buy them up in support, or allow others too and dilute their positions. The 20% otherwise could become a bottleneck to properly funding things.. then we have what @Samupaha said about developers coming back saying they need more money (for different reasons.. ie the fees collected in the 20% isn't enough to cover the maintenance or updates) and now no decentralized mechanism to get the job done.

In the end.. what I am suggesting in how FBAs work gives total freedom to whom ever wants to see a particular feature backed that others are likely to want to be involved with to create a worker proposal that can then be bought up by whom ever would like to participate while keeping the entire coop decentralized, sustainable, efficient,  and free of regulatory issues.
Title: Re: Fee Backed Assets (FBA)
Post by: Shentist on November 28, 2015, 09:05:53 pm
i would like to do it KISS - keep it simple and stupid!

in bitshares to many features are to complicated, so let us think how we can do a FBA without much overhead.

1. some people create a multikey account. could be the committee or something totally different
- they control the creation and maybe the payment if wanted
2. buyback can also be handled with this multi account or better something is coded for automation buyback
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 28, 2015, 09:12:49 pm
i would like to do it KISS - keep it simple and stupid!

in bitshares to many features are to complicated, so let us think how we can do a FBA without much overhead.

1. some people create a multikey account. could be the committee or something totally different
- they control the creation and maybe the payment if wanted
2. buyback can also be handled with this multi account or better something is coded for automation buyback

Sounds like a good version 1. :)  +5%
Title: Re: Fee Backed Assets (FBA)
Post by: Samupaha on November 29, 2015, 05:20:43 pm
I agree.. that's where I started from and as my post continued I pushed the idea more towards it happening within the Worker space. However when it comes to managing the FBA ongoing, it really should be in the hands of the committee members just like MPAs. Otherwise we invite liabilities and other issues into this.

What kind of liabilities you mean? I'd like to see concrete examples so we can understand better what we are dealing here with.

On the other points, we are not necessarily on the same page here.

My central point is that FBA is a deal between Bitshares and developers/investors of a feature. Bitshares recieves the feature and developers/investors recieve the FBA.

There is no need for any kind of FBA-sale. There might be a sale of FBAs because it is funded by crowdfunding, but that should be managed by the crowdfunders. It doesn't even need to happen in these forums, it can be other forum, Kickstarter or something else. There might be a genius idea for some cryptocurrency, and the developers choose to implement it in Bitshares rather than making their own blockchain. They can design and crowdfund it in their own forum and come to us when they have a deal to propose.

This is what I meant with when I said that funding via reserve pool is too limiting. Funding doesn't need to be on the blockchain. Blockchain can be used for that, but I don't see any reason why it should be done only with Bitshares blockchain.

Privatized funding doesn't need to look anything like the worker system we now have. I think it will be a lot more efficient when there is a small group of developers/investors who handle the whole thing and don't ask much from the community. They don't have to waste time on the forums where lots of people are complaining how expensive it is, or how they want it changed, or how they are never going to use it. Instead developers/investors can design a killer feature on their own. They will of course keep all the profits, so they have great incentives to really focus on getting the feature right. They don't need to ask other people to market the feature, because they have an incentive to do it themselves.
Title: Re: Fee Backed Assets (FBA)
Post by: BunkerChainLabs-DataSecurityNode on November 30, 2015, 05:43:14 am
I agree.. that's where I started from and as my post continued I pushed the idea more towards it happening within the Worker space. However when it comes to managing the FBA ongoing, it really should be in the hands of the committee members just like MPAs. Otherwise we invite liabilities and other issues into this.

What kind of liabilities you mean? I'd like to see concrete examples so we can understand better what we are dealing here with.

On the other points, we are not necessarily on the same page here.

My central point is that FBA is a deal between Bitshares and developers/investors of a feature. Bitshares recieves the feature and developers/investors recieve the FBA.

There is no need for any kind of FBA-sale. There might be a sale of FBAs because it is funded by crowdfunding, but that should be managed by the crowdfunders. It doesn't even need to happen in these forums, it can be other forum, Kickstarter or something else. There might be a genius idea for some cryptocurrency, and the developers choose to implement it in Bitshares rather than making their own blockchain. They can design and crowdfund it in their own forum and come to us when they have a deal to propose.

This is what I meant with when I said that funding via reserve pool is too limiting. Funding doesn't need to be on the blockchain. Blockchain can be used for that, but I don't see any reason why it should be done only with Bitshares blockchain.

Privatized funding doesn't need to look anything like the worker system we now have. I think it will be a lot more efficient when there is a small group of developers/investors who handle the whole thing and don't ask much from the community. They don't have to waste time on the forums where lots of people are complaining how expensive it is, or how they want it changed, or how they are never going to use it. Instead developers/investors can design a killer feature on their own. They will of course keep all the profits, so they have great incentives to really focus on getting the feature right. They don't need to ask other people to market the feature, because they have an incentive to do it themselves.

There is a need.. which is what has facilitated this whole idea of an FBA.

What you are calling for is a model that disenfranchises the community at large or others to participate. The ultimate result of this, as we have seen demonstrated, is that the community will not support something that is integral as part of how bitshares works unless they can have at least the opportunity to participate.

I know you are saying a crowdsale should go on somewhere else, however, it will never happen so long as the community is disconnected from he entire process. What I am proposing actually will determine if there will be enough supporting votes within the community for such feature to be implemented, and also allows whatever investors are involved to supply the money needed to fulfill its completion. It can all be done on the blockchain and be open to decentralization instead of only being centralized with the maybe or maybe not of some kind of distribution taking place later.

At least thats what I understand from what you are proposing.
Title: Re: Fee Backed Assets (FBA)
Post by: bitacer on November 30, 2015, 07:26:14 am
There are BTS holders with different time-preferences, some want to hold it while some do not. Look at it any way you like, savers and others. FBAs would be great way for those savers to invest their equity in. This will be a good example of a DAC.
Title: Re: Fee Backed Assets (FBA)
Post by: Samupaha on November 30, 2015, 09:05:45 am
What you are calling for is a model that disenfranchises the community at large or others to participate. The ultimate result of this, as we have seen demonstrated, is that the community will not support something that is integral as part of how bitshares works unless they can have at least the opportunity to participate.

How this has been demonstrated? We haven't tried this yet.

I see no reason why BTS shareholders would reject a feature if it brings more users and revenue for Bitshares. That's the goal of DAC – to get as much users as possible by offering them useful services. That's how we make the whole business profitable.
Title: Re: Fee Backed Assets (FBA)
Post by: Zapply on December 01, 2015, 07:15:43 am
My Fee Backed Assets idea (FBA)

https://bitsharestalk.org/index.php/topic,20368.0.html
Title: Re: Fee Backed Assets (FBA)
Post by: xeroc on December 01, 2015, 10:14:35 am
X-post:
https://bitsharestalk.org/index.php/topic,20321.msg262469.html#msg262469
Title: Re: Fee Backed Assets (FBA)
Post by: xeroc on December 11, 2015, 09:14:23 am
Is this change actually happening or is it a proposal?
This "is" going to happen for the Stealth feature ("is" happending depends on whether shareholders approve the worker and the implicit hard fork)