BitShares Forum

Main => General Discussion => Topic started by: R on April 08, 2017, 12:44:46 am

Title: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 08, 2017, 12:44:46 am
(https://steemitimages.com/0x0/https://i.imgur.com/lu8qgLG.png)

Yo,

One of the major selling points of BTSX for me back in 2014 was the 5% (or x%) on 'anything' marketing (that and sharedrop theory). The idea that I could store MPAs/UIA in effectively my own bank and get better interest rates than that FIAT banks were offering was a powerful message that had me (and a lot of other users) sold.

I realise that in the migration from BTSX (BTS 0.x) to BTS 2.0 we removed 'socialized yield', however I believe that the removal of profit sharing though asset fee yields was a mistake.

https://bitshares.org/blog/2015/06/08/lessons-learned-from-bitshares-0.x/#socialized-yield-is-broken (https://bitshares.org/blog/2015/06/08/lessons-learned-from-bitshares-0.x/#socialized-yield-is-broken)

The following quotes are from the above link.

Quote
Under BitShares the BitAsset holders receive a yield simply by holding BitUSD. This yield was between 1% and 5% APR on average. Unfortunately, yield harvesting can happen at any time by someone shorting to themselves to gain a very low risk return and undermining goal of encouraging people to buy and hold BitUSD. The yield was funded from transaction fees and by interest paid by shorts.

The funding of yield through fees was successful despite the fluctuating rates (1 - 5% APR AVG).

The issue was that users were able to 'yield harvest' by shorting to an alt account, effectively cheating the system.

An alternative distribution mechanism to paying interest by shorting is required.

Peerplays has the ability to distribute 'dividends' to users that hold the peerplays tokens, we should be doing something similar for tokens on the BTS DEX. Hopefully peerplays dividend/profit-sharing code is somewhat compatible with Bitshares (it's using graphene after all).

Relevant peerplays docs:
http://www.peerplays.com/news/how-does-the-profit-sharing-function-work/
https://peerplays.com/docs/Peerplays_Whitepaper.pdf

Quote
As we stated previously, undercharging for transactions is bad for business and BitShares was effectively earning nothing for all transactions of BitUSD because 100% of the income generated from fees was paid out to BitUSD holders as yield and nothing was left over to cover network expenses.

We now gather 20% of fees into the reserve pool (which also contains over 1 Billion BTS), which goes towards workers and witnesses.

80% of fees go towards the referral system.

I would propose that we re-evaluate the distribution of fees between the reserve pool, referral system and asset holders. We could burn through a chunk of the reserve pool, but this would be temporary as we would eventually need to reintroduce such fees to build the reserve pool back up. I think it's most fair to take a chunk of the fees from the referral system.

Infographic showing current BTS cashflow:
https://i.imgur.com/uLxEMat.png

Quote
While Socialized Yield is broken, BitShares 2.0 offers a far better alternative: Collateralized Bonds. Collateralized Bonds enable arbitrary shorting between any two assets, guaranteed interest, and no risk of being force settled. This system privatizes the yield to individual bonds and the terms and leverage available can be far more flexible. In effect, BitUSD becomes cash and a Bond becomes a Certificate of Deposit.

The concept of "Collateralized Bonds" did not make it into Bitshares 2.0, so in effect we cut asset holders out of fee redistribution without providing a replacement source of income for holding assets on the Bitshares DEX. I believe this may be a reason why we had a downtrend when switching from 0.x to 2.0 (disregarding merge drama).

Does anyone have any further information on this collateralized bond market? I could only find the following:

https://bitsharestalk.org/index.php?topic=16752.0
https://bitshares.org/technology/collateralized-bond-market/

---

Edit:
Recent related threads:
"New Bitshares Dividend Idea" https://bitsharestalk.org/index.php/topic,23706.0.html
"Dividend feature" https://bitsharestalk.org/index.php/topic,21476.msg279498.html#msg279498
"Incentivize SmartCoin collateralization" https://bitsharestalk.org/index.php/topic,23707.0.html

---

What do you think?  +5%

Best regards,
CM.

Content replicated: https://steemit.com/bitshares/@cm-steem/lets-bring-earn-x-interest-on-anything-back-to-bitshares (https://steemit.com/bitshares/@cm-steem/lets-bring-earn-x-interest-on-anything-back-to-bitshares)
Useful info: http://cryptofresh.com/reserve
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: 沂蒙小调 on April 08, 2017, 01:25:43 am
 +5%
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 07:23:26 am
I'm in favor of a Dividend method.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: nmywn on April 08, 2017, 08:04:58 am
You can borrow (0%) and make profit yourself. Be your own bank, truly.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: valtr on April 08, 2017, 08:48:15 am
I'm in favor of a Dividend method.
I like the idea of dividends compared to OBITS buyback, but as far as I remember there was an voting in OBITS and idea of buyback was the winner.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 09:18:36 am
I'm in favor of a Dividend method.
I like the idea of dividends compared to OBITS buyback, but as far as I remember there was an voting in OBITS and idea of buyback was the winner.

yeah, but this is not about obits.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 08, 2017, 10:52:28 am
I'm in favor of a Dividend method.
Seconded. It'd be great if there was an automated & scheduled dividend mechanism for MPA assets.

If we implemented dividends for MPA then also providing the functionality (by default disabled) to UIA would be great, not just redistribution of fees but the issuance of additional UIA as a form of interest (only plausible for UIA, not MPA/EBA as they require real backing value).
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 08, 2017, 10:55:13 am
I love the idea of being able to offer an interest rate of return on bitAssets.  OP's idea of redirecting some of the referral program's share of fees is an interesting way to accomplish it without reducing deflation (i.e. increasing inflation).  The question is how much of the desired effect will be realized if we reduce the referral program's share of fees from 80% to 60%?  To know that, we really need to know how much we're currently collecting in fees. 

But let's just say for argument's sake we're currently collecting $10,000 (or ~1.2M BTS) in fees per month.  20% of that (redirected from the referral program) would be $2,000 per month or $24,000 per year.  That would support 1% annual percentage rate on $2,400,000 worth of bitAssets.  Or 2% APR on $1,200,000.  Or 4% APR on $600,000.   

Each of those potential outcomes would represent a substantial increase in bitAsset demand.  But the numbers are based on a guesstimated 1.2M BTS per month in fees.  Is that even close to reality?  If so, we could be onto something here.  In which case the next question would be how to implement this.  It sounds like we would need the dividend feature. 

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 11:26:37 am
I love the idea of being able to offer an interest rate of return on bitAssets.  OP's idea of redirecting some of the referral program's share of fees is an interesting way to accomplish it without reducing deflation (i.e. increasing inflation).  The question is how much of the desired effect will be realized if we reduce the referral program's share of fees from 80% to 60%?  To know that, we really need to know how much we're currently collecting in fees. 

But let's just say for argument's sake we're currently collecting $10,000 (or ~1.2M BTS) in fees per month.  20% of that (redirected from the referral program) would be $2,000 per month or $24,000 per year.  That would support 1% annual percentage rate on $2,400,000 worth of bitAssets.  Or 2% APR on $1,200,000.  Or 4% APR on $600,000.   

Each of those potential outcomes would represent a substantial increase in bitAsset demand.  But the numbers are based on a guesstimated 1.2M BTS per month in fees.  Is that even close to reality?  If so, we could be onto something here.  In which case the next question would be how to implement this.  It sounds like we would need the dividend feature.

even if it's not that much YET. if you get interest it drives more users to bitshares, more users = more fees = more dividends. It'll create a positive circle, and can only get better if we get more features, in my opinion.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 08, 2017, 11:30:07 am
I love the idea of being able to offer an interest rate of return on bitAssets.  OP's idea of redirecting some of the referral program's share of fees is an interesting way to accomplish it without reducing deflation (i.e. increasing inflation).  The question is how much of the desired effect will be realized if we reduce the referral program's share of fees from 80% to 60%?  To know that, we really need to know how much we're currently collecting in fees.

Looking at the cryptofresh reserve budget page (http://cryptofresh.com/reserve (http://cryptofresh.com/reserve)) , the following chart is shown:
(https://i.imgur.com/hr73NkE.png)

Is this accurate? Are these stats since the launch of BTS 2.0 or are they representative of a few months?

Regardless, assuming the 27,416 BTS represents 20%, 100% should be 137,080.

These stats may be discouraging at the moment, but BTS is beginning to build up traction and we're seeing new TX/day records. The more popular BTS gets the higher the sum of collected fees will be & the more effective the 'x% on anything' will be.

Do we have additional sources for these statistics? Would anyone be able to dump the stats directly from the CLI?

Side note - cryptofresh states "Accumulated assets may be transfered, traded, or held, at the committee's discretion. They are not part of the Reserve Pool balance.", this means that the 'Bitshares cash flow' infographic is incorrect.

But let's just say for argument's sake we're currently collecting $10,000 (or ~1.2M BTS) in fees per month.  20% of that (redirected from the referral program) would be $2,000 per month or $24,000 per year.  That would support 1% annual percentage rate on $2,400,000 worth of bitAssets.  Or 2% APR on $1,200,000.  Or 4% APR on $600,000.

How about:
10% -> 'Reserve pool'
50% -> 'x% on anything'
40% -> Referral system

The referral system is great, but I don't view it as better than having a strong 'x% interest on anything' feature, plus it only goes to a small quantity of community members as opposed to all asset holders.

Each of those potential outcomes would represent a substantial increase in bitAsset demand.  But the numbers are based on a guesstimated 1.2M BTS per month in fees.  Is that even close to reality?  If so, we could be onto something here.  In which case the next question would be how to implement this.  It sounds like we would need the dividend feature.
Your estimated fees, according to cryptofresh, are nowhere near the current estimates. We need additional sources of information to confirm this is the case.

The Peerplays dividend feature is fully open source & uses the MIT license: https://github.com/BunkerChainLabsInc/peerplays-profitshare/blob/master/LICENSE.md

I'd vote for a worker proposal for implementing this.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 11:51:21 am
I love the idea of being able to offer an interest rate of return on bitAssets.  OP's idea of redirecting some of the referral program's share of fees is an interesting way to accomplish it without reducing deflation (i.e. increasing inflation).  The question is how much of the desired effect will be realized if we reduce the referral program's share of fees from 80% to 60%?  To know that, we really need to know how much we're currently collecting in fees.

Looking at the cryptofresh reserve budget page (http://cryptofresh.com/reserve (http://cryptofresh.com/reserve)) , the following chart is shown:
(https://i.imgur.com/hr73NkE.png)

Is this accurate? Are these stats since the launch of BTS 2.0 or are they representative of a few months?


where do the 20% for LTM upgrades go to? that number is missing for sure.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 08, 2017, 12:54:38 pm
@Customminer -- I'm not sure over what period time those fees were accumulated.  But it can't possibly be since inception of BTS 2.0.  I don't even think that pool includes all fees currently being collected.  I mean, where is BTS on that list?  The overwhelming majority of fees are collected in BTS, not those other assets, right?  So we need some clarification as to what that pool is, exactly. 

But in the meantime, looking at the top 20 "most fees paid" list on cryptofresh, it appears we've generated at least ~17M BTS in fees since BTS 2.0 launched.  That's about 1M BTS per month.  Actually, it's more since this is only the top 20 accounts in terms of fees paid.  So I think it's pretty close to my guess of 1.2M BTS monthly.  Not to mention, the current monthly rate of fee collection should be higher than the monthly average over the last 18 months considering the substantial growth in transactions we've been experiencing.  On the other hand, a lot of the fees listed below may be from creating assets and therefore more "one-time" in nature (or at least more irregular). 

Anyway, this is just a bunch of guess work.  We need to know the actual rate of monthly fee collection.  But if my guess is even close, then this idea of redirecting a portion of referral rewards could fund substantial bitAsset demand without having to increase fees.  Even if I'm off by an order of magnitude, then this could still be worth pursuing considering, as @fav mentioned, it could kick off a virtuous cycle that could end up being substantial.


(http://i.imgsafe.org/8d551bbca8.jpg)

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 08, 2017, 12:59:02 pm
By the way, we really should not contemplate reducing the network's current 20% share of the fees.  That would be inflationary, which would decrease demand for BTS.  It would also make it more difficult to fund worker proposals.  If anything, we should increase the network's share, which would be deflationary and would also make it easier to fund worker proposals.  Both factors would help increase demand for BTS and help compound the effect of offering interest by contributing even more to the virtuous circle.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 01:02:11 pm
By the way, we really should not contemplate reducing the network's current 20% share of the fees.  That would be inflationary, which would decrease demand for BTS.  It would also make it more difficult to fund worker proposals.  If anything, we should increase the network's share, which would be deflationary and would also make it easier to fund worker proposals.  Both factors would help increase demand for BTS and help compound the effect of offering interest by contributing even more to the virtuous circle.

agree, just take 20% of referral income. that way registrars could still maintain 20%, marketers could get 20% and 20% interest
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: virtualgrowth on April 08, 2017, 01:14:42 pm
The idea of an asset with profit sharing built into the asset for holders sounds great.  Kind of like how banks offer a %.  But profit sharing is much better and if properly structured to keep growth in line without costing any part of bitshares too much will provide overall growth.

May be best if the profit percentage shared was ultimately a part of the profit earned from the trading fees from the trading of these "profit sharing assets".  This was the profit loop / cycle is kept in check and won't come out of balance.

Look forward to more in this community and the great ideas and possibilities that (may) exist!
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 08, 2017, 01:48:56 pm
@Customminer -- I'm not sure over what period time those fees were accumulated.  But it can't possibly be since inception of BTS 2.0.  I don't even think that pool includes all fees currently being collected.  I mean, where is BTS on that list?  The overwhelming majority of fees are collected in BTS, not those other assets, right?  So we need some clarification as to what that pool is, exactly. 

But in the meantime, looking at the top 20 "most fees paid" list on cryptofresh, it appears we've generated at least ~17M BTS in fees since BTS 2.0 launched.  That's about 1M BTS per month.  Actually, it's more since this is only the top 20 accounts in terms of fees paid.  So I think it's pretty close to my guess of 1.2M BTS monthly.  Not to mention, the current monthly rate of fee collection should be higher than the monthly average over the last 18 months considering the substantial growth in transactions we've been experiencing.  On the other hand, a lot of the fees listed below may be from creating assets and therefore more "one-time" in nature (or at least more irregular). 

Anyway, this is just a bunch of guess work.  We need to know the actual rate of monthly fee collection.  But if my guess is even close, then this idea of redirecting a portion of referral rewards could fund substantial bitAsset demand without having to increase fees.  Even if I'm off by an order of magnitude, then this could still be worth pursuing considering, as @fav mentioned, it could kick off a virtuous cycle that could end up being substantial.

Excellent, I was thinking that the fee tables on Cryptofresh were a tad off. These figures make the concept far more feasible & worthwhile of implementing. The more successful the BTS DEX gets, the better the interest rates become.. if only FIAT banks worked like that, haha!

I was just thinking about how exchanges would behave if we introduced this functionality.. Would they claim the interest? If they did, would they pass this onto their users? If they didn't collect the interest, or didn't forwards the interest to the rightful asset holders could this seriously reduce the quantity of coins being held on centralized exchanges? It may tilt balance back in favour of decentralization.


By the way, we really should not contemplate reducing the network's current 20% share of the fees.  That would be inflationary, which would decrease demand for BTS.  It would also make it more difficult to fund worker proposals.  If anything, we should increase the network's share, which would be deflationary and would also make it easier to fund worker proposals.  Both factors would help increase demand for BTS and help compound the effect of offering interest by contributing even more to the virtuous circle.
Funding worker proposals in the short term would not be affected, as the BTS stored in the reserve pool is substantial. That said, I agree that reducing the network fees would lead to BTS being made liquid in a more rapid fashion, but I do not agree that it is entirely inflationary as it is just reintroducing coins (which would otherwise have been temporarily locked away) back into the public's coin supply in a more timely manner. A more explicitly inflationary move would be to sharedrop BTS from the reserve.

I think we can make substantial room for 'x% interest on anything' out of the referral system's fees.

By the way, we really should not contemplate reducing the network's current 20% share of the fees.  That would be inflationary, which would decrease demand for BTS.  It would also make it more difficult to fund worker proposals.  If anything, we should increase the network's share, which would be deflationary and would also make it easier to fund worker proposals.  Both factors would help increase demand for BTS and help compound the effect of offering interest by contributing even more to the virtuous circle.

agree, just take 20% of referral income. that way registrars could still maintain 20%, marketers could get 20% and 20% interest
I believe that we should offer more than 20%, this is something we could potentially vote on within the client. How would we go about voting on multiple possible parameter outcomes within the client? Best to bring this topic up in the next Bitshares hangout on Friday then move forwards to polls with a few hand selected combinations?

How about:

Network; x% Interest; Referral System
20, 40, 40
30, 40, 30
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Thom on April 08, 2017, 02:18:31 pm
I really like this thread, it reminds me of the thinking and enthusiasm in 2014.

I am somewhat surprised @fav hasn't vocalized more resistance to reducing the % for the referral program; perhaps he recognizes the broader benefit of interest on anything?

However I would caution against reducing it too much, as I believe that the referral program will provide a powerful incentive for grass roots marketing as well as provide an income stream for those with more of a sales and marketing skill-set once adoption kicks into full swing with a more mainstream audience.

The good news is we have a wide range of numbers (%-wise) to playaround with to get the balance right. Whatever form the implementation would take these need to be surfaced as committee parameters so adjustments to them can be made as conditions / needs change.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 02:26:34 pm
I really like this thread, it reminds me of the thinking and enthusiasm in 2014.

I am somewhat surprised @fav hasn't vocalized more resistance to reducing the % for the referral program; perhaps he recognizes the broader benefit of interest on anything?


i just like dividends more than the current referral program.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 08, 2017, 02:29:12 pm

I believe that we should offer more than 20%, this is something we could potentially vote on within the client. How would we go about voting on multiple possible parameter outcomes within the client? Best to bring this topic up in the next Bitshares hangout on Friday then move forwards to polls with a few hand selected combinations?

How about:

Network; x% Interest; Referral System
20, 40, 40
30, 40, 30

first of all, before we talk more than the golden girls (as usual), please find a dev and get a price estimation on the costs. also, pretty sure this needs a hardfork. the parameters could be set by the committee, but let's talk about the details once this can be implemented
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 08, 2017, 02:49:32 pm

I believe that we should offer more than 20%, this is something we could potentially vote on within the client. How would we go about voting on multiple possible parameter outcomes within the client? Best to bring this topic up in the next Bitshares hangout on Friday then move forwards to polls with a few hand selected combinations?

How about:

Network; x% Interest; Referral System
20, 40, 40
30, 40, 30

first of all, before we talk more than the golden girls (as usual), please find a dev and get a price estimation on the costs. also, pretty sure this needs a hardfork. the parameters could be set by the committee, but let's talk about the details once this can be implemented
Is there a pool of known Bitshares contract developers that we can work with?

Hardforks are no problem, we only need 21 clients to upgrade for it to be successful. Besides, we've got several additional hardfork upgrades awaiting integration (MPA hardening) that could also piggyback on a single hardfork.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 08, 2017, 10:06:19 pm
This referral sys was BS since its inception. Its overall costs are several orders of magnitude higher then its benefits.
That was Max Wright idea, I remember BM was against at the time. It is mystery to me how they manage to persuade him to change his mind and include it in BTS 2.0, as well as leather disappearance of its sole creator. It reminds me of amateur marketing Bitshares consumes since Brian Page.

Overall this system didn't bring anything to Bitshares except a benefit to entities which take advantage of this hidden taxation tool. Which brings me to the point. I am afraid it will be very hard to get enough support for the change of this useless feature. But we'll see.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 08, 2017, 10:25:18 pm
This referral sys was BS since its inception. Its overall costs are several orders of magnitude higher then its benefits.
That was Max Wright idea, I remember BM was against at the time. It is mystery to me how they manage to persuade him to change his mind and include it in BTS 2.0, as well as leather disappearance of its sole creator. It reminds me of amateur marketing Bitshares consumes since Brian Page.

Overall this system didn't bring anything to Bitshares except a benefit to entities which take advantage of this hidden taxation tool. Which brings me to the point. I am afraid it will be very hard to get enough support for the change of this useless feature. But we'll see.
I agree. The referal system in its present form is pointless. I think it should be a one time payout bonus based on some metric the new user hits. The new user should either generate a certain revenue in fees and/or reach a certain amount of activity over say a 3 to 6 month period. This is more in line with traditional referal programs. Those lifetime fees currently would be better off going to a yield pool for all.

LTM can still offer lower fees overall and perhaps no fees when buying bitaseests with bts.

Sent from my SM-N920T using Tapatalk
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: vegolino on April 08, 2017, 10:30:19 pm
This referral sys was BS since its inception. Its overall costs are several orders of magnitude higher then its benefits.
That was Max Wright idea, I remember BM was against at the time. It is mystery to me how they manage to persuade him to change his mind and include it in BTS 2.0, as well as leather disappearance of its sole creator. It reminds me of amateur marketing Bitshares consumes since Brian Page.

Overall this system didn't bring anything to Bitshares except a benefit to entities which take advantage of this hidden taxation tool. Which brings me to the point. I am afraid it will be very hard to get enough support for the change of this useless feature. But we'll see.
+5%
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 09, 2017, 07:57:26 am
This referral sys was BS since its inception. Its overall costs are several orders of magnitude higher then its benefits.
That was Max Wright idea, I remember BM was against at the time. It is mystery to me how they manage to persuade him to change his mind and include it in BTS 2.0, as well as leather disappearance of its sole creator. It reminds me of amateur marketing Bitshares consumes since Brian Page.

Overall this system didn't bring anything to Bitshares except a benefit to entities which take advantage of this hidden taxation tool. Which brings me to the point. I am afraid it will be very hard to get enough support for the change of this useless feature. But we'll see.

I disagree. The fee change to nothing and the lack of features for ltm rendered it useless. Referral systems are multi billion dollars of magnitude better than what anyone else could possibly add to BitShares. Problem is no one here has any clue.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 09, 2017, 10:56:48 am

Referral systems are multi billion dollars of magnitude better than what anyone else could possibly add to BitShares. Problem is no one here has any clue.

Then pls elaborate this multi billion dollar idea. Referral system is derivative of recognition of life time value of the client. New clients value is sum of all profit they bring to a business during their life time. Small part of that value is given to the ones that bring this new business, basically as one time reward rarely as a fee.  Now, how Bitshares referral system fits to this general idea. I think this referral system doesn't have Bitshares platform as business in mind.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Thom on April 09, 2017, 05:53:13 pm

Referral systems are multi billion dollars of magnitude better than what anyone else could possibly add to BitShares. Problem is no one here has any clue.

Then pls elaborate this multi billion dollar idea. Referral system is derivative of recognition of life time value of the client. New clients value is sum of all profit they bring to a business during their life time. Small part of that value is given to the ones that bring this new business, basically as one time reward rarely as a fee.  Now, how Bitshares referral system fits to this general idea. I think this referral system doesn't have Bitshares platform as business in mind.

I disagree, and wonder where your strong attitude is coming from.

I do agree we haven't see significant value from referral system yet, but that's primarily due to the lack of utility to non-crypto / more mainstream crowd. Once that starts to take off I think the referral program will show value.

Also Max Write did come up with the idea of MLM to market BitShares, but the referral program is not truly MLM as it cuts off benefit at (2 ?) levels. I use MLM as a easy way to say "pyramid scheme".

Referral program concept is grass roots marketing. It takes very little away from BitShares if it isn't used much (like so far), but will be an inexpensive way to market BitShares while at the same time promoting individual business for those with a sales / marketing interest.

Your strong attitude when there are so many greater issues leads me to be skeptical of your perspective.

Lastly the referral program like so many other aspects of the entire BTS ecosystem is a grand experiment. Don't be too hasty to presume it won't work without adequate data.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: konelectric on April 09, 2017, 06:28:33 pm
BitshareX the good old days. I remember them well. With the U.S. Dollar losing 4% value per year, I was buying bitassets the were 5% or higher. This was a great selling point for Bitshares. After Bitshares 2.0 came out, it was taken away. Some People left Bitshares because or this. I traded off my bitassets for Bitshares (Bitshares at less has share dropping). Is there any lessons learned from Steem Dollars?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 09, 2017, 07:24:37 pm
Let the businesses that developed on bts do mlm and big referal schemes. The core bts proposition should be simple the more bts you hold or lock away gives you a % of revenue generated by the blockchain. Short and simple. Anything more complex is a layer on top such as OL.

Sent from my SM-N920T using Tapatalk

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 09, 2017, 08:05:27 pm
Let's not make this all about referral system, this topic is too important.


Here's a thought :

Take 20% off of the fee pool.
15% go to ALL DIVIDENDS
5% go to LTM DIVIDENDS

that would lead to yet another cycle, investors would upgrade, fuel fee pool by upgrading and marketers/registrars  would earn as well.

Win win win?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 09, 2017, 08:22:53 pm

Your strong attitude when there are so many greater issues leads me to be skeptical of your perspective.

Lastly the referral program like so many other aspects of the entire BTS ecosystem is a grand experiment. Don't be too hasty to presume it won't work without adequate data.


I would say you are right about that one. I could try to explain my attitude.
We are not talking here about peanuts but about basic revenue stream distribution. I think the OP has that in mind when open this thread.

This revenue stream is meant for covering basic expenses aka witness pay and further development aka workers. Excessive could be distributed as X% to share holders, referral rewards and etc..
Reserve fund here serves only as a buffer pool that could compensate for iliquidity during development and user acceptance faze but if not properly managed could become insolvent.
This is basically situation we currently have. Current model is unsustainable. We are spending more then we earn.
It is not critical at this point I would say, if we maintain current level of spending RF could last about 30 years. But the spending is increasing not decreasing. I could go one with further elaboration but this is going way out of this topic.

Now how could we talk about profit distribution, when we are basically working at a loss. I didn't involve in this discussion from the very beginning, but tried to contribute to already elaborated idea to decrease referral spending. Speaking about the devil I have questioned very essence of referral system which drains 80% of revenue stream from a new client. In such a huge cut that is given, there could be no value to support that.
No one seams to be able to explain that. I am afraid there is no deeper understanding behind that attitude neither. Only proclamations such as speed, flash, clash, turbo, xyz million etc.. Sorry but I cant buy that. I could further speculate on interests behind such approach but it goes way beyond scope of this discussion.

So I was against that idea back then in Max Wright days, and I am obviously now, but who cares anyway.

If properly managed this revenue stream could provide profit distribution model OP describes and provide way,way better marketing then current referral system does. 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 09, 2017, 11:21:38 pm
BTS reserve pool should be spent on essential network operations only, which are witnesses and essential development projects. Referrals, dividends and other farts and whistles  should be funded other ways.

And giving away 80% of BTS revenue to referrals is just stupid.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 10, 2017, 12:02:15 am
This referral sys was BS since its inception. Its overall costs are several orders of magnitude higher then its benefits.
That was Max Wright idea, I remember BM was against at the time. It is mystery to me how they manage to persuade him to change his mind and include it in BTS 2.0, as well as leather disappearance of its sole creator. It reminds me of amateur marketing Bitshares consumes since Brian Page.

Overall this system didn't bring anything to Bitshares except a benefit to entities which take advantage of this hidden taxation tool. Which brings me to the point. I am afraid it will be very hard to get enough support for the change of this useless feature. But we'll see.

The referral system isn't worthless, it's driving new users to the network but I agree that it's currently allocated too large a slice of the overall network fees and not enough users are making use of it.

This referral sys was BS since its inception. Its overall costs are several orders of magnitude higher then its benefits.
That was Max Wright idea, I remember BM was against at the time. It is mystery to me how they manage to persuade him to change his mind and include it in BTS 2.0, as well as leather disappearance of its sole creator. It reminds me of amateur marketing Bitshares consumes since Brian Page.

Overall this system didn't bring anything to Bitshares except a benefit to entities which take advantage of this hidden taxation tool. Which brings me to the point. I am afraid it will be very hard to get enough support for the change of this useless feature. But we'll see.

I disagree. The fee change to nothing and the lack of features for ltm rendered it useless. Referral systems are multi billion dollars of magnitude better than what anyone else could possibly add to BitShares. Problem is no one here has any clue.

Fees aren't 0 though, the rough estimates of 1 million BTS per month at current rates works out at $6400 per month for the referral system.

I disagree that nothing better than the referral system will be implemented into the Bitshares network, this thread alone is proof that better ideas than the referral system can exist. Billions of dollars of magnitude? Bitshares hasn't seen this magnitude come from the referral system, lol.

No one here has any clue? Why not educate us on that which you claim we don't know instead of putting users down?

Let's not make this all about referral system, this topic is too important.

Here's a thought :

Take 20% off of the fee pool.
15% go to ALL DIVIDENDS
5% go to LTM DIVIDENDS

that would lead to yet another cycle, investors would upgrade, fuel fee pool by upgrading and marketers/registrars  would earn as well.

Win win win?

What happened to finding devs and price estimation before talking about the 'golden girls'? Haha ;D https://bitsharestalk.org/index.php/topic,23981.msg304394.html#msg304394 (https://bitsharestalk.org/index.php/topic,23981.msg304394.html#msg304394)

You say 20% off of the fee pool, do you mean the 20% allocated from fees to top up the reserve pool, or a 20% sharedrop from the reserve pool?

I agree with Tbone (https://bitsharestalk.org/index.php/topic,23981.msg304385.html#msg304385 (https://bitsharestalk.org/index.php/topic,23981.msg304385.html#msg304385)) that by cutting the 20% from the reserve pool income that we somewhat introduce inflation (as these assets would otherwise have been locked temporarily in the reserve pool), where as if we were to cut the fees allocated to the referral system we would not experience inflation.

I like the idea of introducing a separate allocation of the dividends to the LTM users, it could potentially drive up LTM registrations!

We should vote on the 80% fee allocation between referral and dividend features if this idea gains traction.

BTS reserve pool should be spent on essential network operations only, which are witnesses and essential development projects. Referrals, dividends and other farts and whistles  should be funded other ways.

And giving away 80% of BTS revenue to referrals is just stupid.
I agree that referrals and dividends should not come out of the reserve pool, and I don't believe anyone in here is proposing this - we're focused on the fees that are currently allocated to the referral system.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 10, 2017, 05:20:31 am


You say 20% off of the fee pool, do you mean the 20% allocated from fees to top up the reserve pool, or a 20% sharedrop from the reserve pool?


trying to get the thread back to topic, as it's already derailing to nonsense.

and yes, 20% cut from referral %
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 10, 2017, 06:01:17 am
I agree with @fav that this should not become a debate about whether referral programs have merit, because it's a proven fact that they can be incredibly powerful.  However, OPs idea cannot be realized without modification of the existing program. So that clearly has to be a part of this conversation. Not to mention, we know the referral program has issues that need to be addressed.  So this may also be a very good opportunity to make the referral program more sensible and effective...while simultaneously making it possible to pay interest to bitAsset holders, as well s fav's great new idea of paying a dividend to LTM accounts.  All without dilution.

I think one of the problems with the referral program is that with the current split there will always be great resistance to raising fees since the network only gets 20% of any increase. The current split also dampens the ability to vote in worker proposals as well as reduces deflation, which are both factors that reduce demand for BTS.  This is a losing proposition for everyone including referrers.

If we can shift the split such that the network gets a much higher percentage, that would immediately make the network much more profitable.  In that scenario, we would have a) increased deflation, or b) an easier time voting in worker proposals, or c) some combination thereof.  And there would be less resistance to the idea of raising fees.  All of this means greater demand for BTS.

Imagine now that in addition to the above, we can also offer an interest rate of return on bitAssets AND a dividend on BTS for LTM accounts.  And again, without any dilution.  We can do all of this if we allocate the fees differently.  Here's my proposed split: 

50% - network
20% - referral
20% - bitAsset interest
10% - LTM dividend

I also propose that the referrer gets the 20% on ALL fees, even on fees paid by LTM users (which i'm 90% sure referrers currently get 0% of).  In addition, I propose that the referrer keeps 100% of the LTM fee.

Overall, I think a fee allocation like this would be a MASSIVE win for all parties involved.  Thoughts?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 10, 2017, 06:21:18 am

50% - network
20% - referral
20% - bitAsset interest
10% - LTM dividend


sounds like a plan. who can do it? @kenCode 's team? should we request a quote?

edit: peerplays' dividend code is free to use as far as I know
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 10, 2017, 06:51:30 am
50% - network
20% - referral
20% - bitAsset interest
10% - LTM dividend


This one sound reasonable.


I also propose that the referrer gets the 20% on ALL fees, even on fees paid by LTM users (which i'm 90% sure referrers currently get 0% of).  In addition, I propose that the referrer keeps 100% of the LTM fee.


This one sounds not so reasonable.  It makes LTM pointless. LTM is kind of bulk discount. It could be fair referrer gets 100% of LTM ( in my opinion 50:50 split would be fine) but additional taxation of poor referee (20% of all fees) or taking more of revenue stream from the network, is unreasonable.  This one should be clarified because it is not clear from where these 20% of ALL fees would come from.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 10, 2017, 06:56:47 am

50% - network
20% - referral
20% - bitAsset interest
10% - LTM dividend


sounds like a plan. who can do it? @kenCode 's team? should we request a quote?

edit: peerplays' dividend code is free to use as far as I know

Fantastic.  Hopefully we can get a quote ASAP.  In the meantime, I hope we'll get some input from others such as @xeroc, @Chris4210, @JonnyBitcoin , @bitcrab, @alt

We also need to know more precisely what the monthly collected fees have been since inception of Bitshares 2.0.  I asked in the dev channel and @Taconator has graciously offered to help within a week if no one else has already helped by then. 

 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 10, 2017, 10:11:25 am
so who's formulating the idea and approaching blockpay.ch (via email)?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 10, 2017, 03:19:37 pm
I know there are plenty voicing opinions in this thread, but I'd like to take a moment to share mine.

First and foremost, I do not agree with any actions that add strain to the reserve pool (without a very strong argument for long term benefit).  Witness pay has just increased and more active workers are draining the pool faster than increased activity can keep up.  Long term goal should be a sustainable pool which balances pay with fees.

Second.  There should be no change to LTM fee percentages (small changes to non-LTM is fine with me).  Many have chosen LTM knowing the cost-benefit of 80% fees returned.  Don't mess with this.

Third.  We must explore motivations and desired outcomes for any suggested changes.  What problem are we trying to solve?  What impact does this have on the long-term health of the Bitshares ecosystem?

In my opinion, the two things which would help Bitshares the most is:

The reason being that more active and usable markets will attract new traders to the DEX.  Rewarding those who simply hold assets does not improve the DEX.

I come back, then, to the idea suggested a little while ago: Reward those who have bitAsset debt (collateralized position) with (new) market fees from same bitAsset markets.  Only those with debt collect dividends (from the market-produced trading fees -- aka "market fee") at a pro-rata basis.  Simply holding a bitAsset does not yield dividends.

What does this do?

If the idea is adopted, I'd like to see it applied (as a test case) to a less-active bitAsset first before moving on to the big ones.

Thanks for reading!
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Thom on April 10, 2017, 03:23:00 pm
This is basically situation we currently have. Current model is unsustainable. We are spending more then we earn.

^^THIS - you nailed it with this statement. THIS was the fundamental issue that truly hooked me that differentiated BitShares from virtually EVERY other coin out there, ESPECIALLY Bitcoin, so thank you for reminding everyone in this thread that this principle of operation cannot be minimized or swept under the rug.

However, it's also important to view our current situation from the standpoint of a startup company, which always operate at a loss conceptually until their product is out there in the market earning money b/c people value it. Is it true the "Current model is unsustainable" ? Over what period? Is the reserve pool growing or shrinking? We have sustained this ecosystem over the last 1.5 years with this model, so I'm not sure, so my question is not unreasonable.

Whether we could go another 10, 20 or 30 years with existing model as a financial projection is not the whole story, I don't think anyone here cares as long as we don't spend ourselves out of existence this year or next. Point is all of us here want to make it better, want to improve growth and adoption, and that is not happening with the current model, so from that standpoint something needs to change.

I also believe we need to remember how important marketing is to the success of BitShares. None of us want to see BitShares become the BetaMax (https://en.wikipedia.org/wiki/Betamax) of the crypto world (superior tech but failed due to inferior marketing) The referral program can help with that, but it may not be enough. At this stage of evolution marketing is crucial, and should be considered as a necessary cost of doing business that directly affects sustainability. It needs to be a factor, but not as a static or permanent expense. Ideally IMO marketing needs a big chunk of funds now but should be tapered off as traction is gained, where hopefully things like the referral program will kick in to sustain and fund growth after the major push is no longer needed. IMHO a worker proposal is perfect for such funding. It has the accountability and approval built in, no need to find an alternative now. Depending on how successful a campaign funded this way goes may require other funding, but to start with I believe a worker proposal will be adequate.

This is an excellent discussion. All it seems to be lacking is input from the coders and technical side regarding the cost to implement these ideas.

I am very pleased to see the participants here being open minded to the various distribution allocations, especially you @fav. You may feel you shouldn't be known as the strongest advocate for the referral system, but in my mind you are. Glad to see your willingness to be flexible. I wonder if this discussion had taken place 12 - 14 months ago if your perspective would be different.

I agree with @fav that this should not become a debate about whether referral programs have merit, because it's a proven fact that they can be incredibly powerful.  However, OPs idea cannot be realized without modification of the existing program. So that clearly has to be a part of this conversation. Not to mention, we know the referral program has issues that need to be addressed.  So this may also be a very good opportunity to make the referral program more sensible and effective...while simultaneously making it possible to pay interest to bitAsset holders, as well s fav's great new idea of paying a dividend to LTM accounts.  All without dilution.

EXACTLY tbone, well said.

Rewarding those who simply hold assets does not improve the DEX.

I disagree with that, however you raised several very good points so I don't want to dismiss everything. Thanks for contributing to the conversation @kani.

Your perspective appears to be that of a trader, not the average Joe or Joanne who are looking for a safe alternative to confiscatory practices of mainstream financial institutions. I agree with others who have stated they saw the removal of interest on BitUSD present in Bitshares 0.X era as a bad thing. That is a perfect example of factions that are at odds with each other, as traders who shorted BitUSD back then with their "Yield Harvesting" did not have the best interests of the ecosystem in mind and such activities ruined the sustainability and long term viability of BitUSD as a savings asset.

This. is an example of how different target audiences have different and sometimes opposing views on what bring them value and utility. We need to mange these differences in a balanced and reasonable manor so they don't become divisive. Diversity need not be detrimental if we view it as opportunities to sell in different markets.

Who here would say the USA should never have established trade relations with China b/c freedom and communism are not compatible? (disregarding the fact that NO gubermnt promotes and protects freedom. I could see an argument to avoid trade with others based on the principle of shunning or "helping an enemy", or the fact that the US gubermnt has adopted 9 out  of the 10 planks in the communist manifesto, but I'll not go there now)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 10, 2017, 04:33:16 pm
Agree @Thom - my views changed based on experience.

I'd rather get 10% of active users than 60% of nothing (current)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 10, 2017, 04:41:55 pm
I know there are plenty voicing opinions in this thread, but I'd like to take a moment to share mine.

First and foremost, I do not agree with any actions that add strain to the reserve pool (without a very strong argument for long term benefit).  Witness pay has just increased and more active workers are draining the pool faster than increased activity can keep up.  Long term goal should be a sustainable pool which balances pay with fees.

Second.  There should be no change to LTM fee percentages (small changes to non-LTM is fine with me).  Many have chosen LTM knowing the cost-benefit of 80% fees returned.  Don't mess with this.

Third.  We must explore motivations and desired outcomes for any suggested changes.  What problem are we trying to solve?  What impact does this have on the long-term health of the Bitshares ecosystem?

In my opinion, the two things which would help Bitshares the most is:
  • increased supply of bitAssets
  • usable liquidity

The reason being that more active and usable markets will attract new traders to the DEX.  Rewarding those who simply hold assets does not improve the DEX.

I come back, then, to the idea suggested a little while ago: Reward those who have bitAsset debt (collateralized position) with (new) market fees from same bitAsset markets.  Only those with debt collect dividends (from the market-produced trading fees -- aka "market fee") at a pro-rata basis.  Simply holding a bitAsset does not yield dividends.

What does this do?
  • encourages more to short, increasing supply
  • encourages riskier shorts closer to MCR to get most bitAsset for the BTS (which then results in more forced settlement activity)
  • encourages those who do short to actively make markets to increase usable liquidity, which in turn provides volume and increases dividend from market fees

If the idea is adopted, I'd like to see it applied (as a test case) to a less-active bitAsset first before moving on to the big ones.

Thanks for reading!

I agree with the paying interest to those who have collateral in the system. I think the LTM changes can be on table. I don't believe LTM is core feature of BTS that is sat in stone therefore  it should be able to be changed or removed by user user consensus with a vote. That's why we have voting so when add features that make sense and and remove features that are not performing to expectations.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 10, 2017, 05:06:24 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

I'll raise this topic during the next Bitshares hangout on the 14th. I'd appreciate anyone reading this to reach out to others they believe would be interested in this topic (for discussion or development).

I know there are plenty voicing opinions in this thread, but I'd like to take a moment to share mine.

First and foremost, I do not agree with any actions that add strain to the reserve pool (without a very strong argument for long term benefit).  Witness pay has just increased and more active workers are draining the pool faster than increased activity can keep up.  Long term goal should be a sustainable pool which balances pay with fees.

I believe the idea re: fees allocated to the reserve pool has shifted towards an increase of fees being allocated to the reserve pool, which would be a deflationary move which would slow the rate at which we are burning through the reserve pool.

Second.  There should be no change to LTM fee percentages (small changes to non-LTM is fine with me).  Many have chosen LTM knowing the cost-benefit of 80% fees returned.  Don't mess with this.

Agreed, no changes to the existing fee schedule are in scope of this proposal. The topic is discussing the allocation of the fees accumulated from the existing fee schedule, between the reserve pool, referral system and asset holders.

Third.  We must explore motivations and desired outcomes for any suggested changes.  What problem are we trying to solve?  What impact does this have on the long-term health of the Bitshares ecosystem?

In my opinion, the two things which would help Bitshares the most is:
  • increased supply of bitAssets
  • usable liquidity


The problem we're trying to solve is the lack of incentives for holding assets on the Bitshares DEX long term; back in BTSX we offered 'x% on anything' where by holding bitUSD yielded a portion of the bitUSD fees (proportional to the total amount of bitUSD in existence). The potential 'interest' rate in such a profit sharing mechanism is/was greater than the interest rates offered by FIAT banks.

This profit sharing mechanism was one of the major marketing points of BTSX that I have missed in the BTS 2.0 DEX and I think that its reintroduction could boost the amount of users utilizing the BTS DEX.

By increasing the incentive to hold FIAT savings as bitassets on the BTS DEX we potentially increase the amount of bitassets in existence & thus less BTS are liquid.

Regarding usable liquidity, if there are more bitAsset holders then we have more individuals who could actively participate in market making (especially with the ease of use of new tools such as btsbots).

The reason being that more active and usable markets will attract new traders to the DEX.  Rewarding those who simply hold assets does not improve the DEX.
If we can get all/most/more Bitshares holders to hold their bitshares on the DEX instead of on centralized exchanges, we minimize the risk of said centralized exchanges having a massive voting weight with which they can disrupt the voting mechanism (proposals/polls/committee/witnesses/etc).

I come back, then, to the idea suggested a little while ago: Reward those who have bitAsset debt (collateralized position) with (new) market fees from same bitAsset markets.  Only those with debt collect dividends (from the market-produced trading fees -- aka "market fee") at a pro-rata basis.  Simply holding a bitAsset does not yield dividends.
Providing dividends upon shorting of bitassets is open to abuse, 'yield-harvesting' was one of the main reasons that this functionality was removed during the upgrade from BTS 0.x to 2.0.
https://bitshares.org/blog/2015/06/08/lessons-learned-from-bitshares-0.x/#socialized-yield-is-broken (https://bitshares.org/blog/2015/06/08/lessons-learned-from-bitshares-0.x/#socialized-yield-is-broken)

Holding a bitAsset means that you've either bought these tokens off of someone that shorted them into existence, or you created them yourself with sufficient backing collateral, so an increased demand for bitAssets for long-term holding does improve liquidity.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 10, 2017, 09:03:38 pm
Thanks to those who commented on what I wrote.  I have little time for detailed response but it's clear there is a wider perspective here which I did not consider.

But I will reinforce one idea in-particular: Substantial revenue for paying BTS and bitAsset interest can be made via "Market Fees".  This alleviates the risk of reserve pool managing short positions (or even touching the reserve pool at all).  One advantage is that "Market Fees" are produced in *that* asset (ie: bitUSD market fees come out in bitUSD, and etc).  The transaction fee schedule then remains, in effect, an anti-spam measure and does not take away from the existing referral system.  Plus there is no in-between step of converting BTS from transaction fees into the currency of choice.

Now, I do believe the market fees must be kept small to keep Bitshares a competitive trading platform.  Something like 0.05 to 0.1% is probably okay???  Would need broader community feedback and analysis.


EDIT: I really do think revenue sharing from exchange activity is important...  Does this phrase ring a bell?:Let's make that statement a reality.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: iHashFury on April 10, 2017, 09:45:02 pm
  • "BitShares - Your share in the Decentralized Exchange"
Let's make that statement a reality.

 +5%
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 10, 2017, 11:02:31 pm
Thanks to those who commented on what I wrote.  I have little time for detailed response but it's clear there is a wider perspective here which I did not consider.

But I will reinforce one idea in-particular: Substantial revenue for paying BTS and bitAsset interest can be made via "Market Fees".  This alleviates the risk of reserve pool managing short positions (or even touching the reserve pool at all).  One advantage is that "Market Fees" are produced in *that* asset (ie: bitUSD market fees come out in bitUSD, and etc).  The transaction fee schedule then remains, in effect, an anti-spam measure and does not take away from the existing referral system.  Plus there is no in-between step of converting BTS from transaction fees into the currency of choice.

Now, I do believe the market fees must be kept small to keep Bitshares a competitive trading platform.  Something like 0.05 to 0.1% is probably okay???  Would need broader community feedback and analysis.


EDIT: I really do think revenue sharing from exchange activity is important...  Does this phrase ring a bell?:
  • "BitShares - Your share in the Decentralized Exchange"
Let's make that statement a reality.

To alleviate your concerns, keep in mind that this thread is NOT proposing to have the reserve pool manage any short positions.  You must be thinking of the other thread where it was proposed to pay witnesses/workers in bitUSD by automatically converting BTS into bitUSD by shorting with a pre-determined collateral level, etc.  That was a good idea, but the proposal in this thread makes it largely unnecessary.

Also, keep in mind that this proposal does NOT aim to change the fees paid by users.  It only aims to realign the allocation of collected fees between the network and the referral program.  The purpose is to a) pay an interest rate of return on bitAssets in order to drive demand for bitAssets to levels not seen since we had interest payments in Bitshares 1.0  and b) pay a dividend on BTS held in LTM accounts in order to drive further demand for BTS and to incentivize more LTMs.  Amazingly this is all done without adding any dilution.  In fact, it will make bitshares substantially more deflationary than before.

This is by far the most bullish development for bitshares in my 2 years of following the project.  And I think now for the first time, the referral program will be very effective.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: JonnyB on April 10, 2017, 11:49:36 pm

50% - network
20% - referral
20% - bitAsset interest
10% - LTM dividend


I would support something like this.

It might be easier to get consensus in smaller steps. Maybe just get consensus on 50% for network and 50% referrals first.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 01:18:16 am
This is all dandy, but misleading.  The claim that this proposal does not raise user fees is absolutely FALSE!

A LTM account pays 20% to network, and gets 80% back in vesting.  And anyone who has self-registered sub-accounts, is the same -- 20% to network and 80% back to the registering account.  Don't mess with this -- any changes represent a major breach of trust to anybody who paid the $80-$150 to become a Life Time Member.

Do it with market fees.  Then there is no worry about how to convert to a chosen bitAsset, and is market driven -- more volume creates more revenue.

And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.  (And consider the VERY POSITIVE price effect this would have on BTS.  Many more will short bitAssets to chase the dividend payment and locking up that BTS for bitAsset of choice.  More BTS locked up means upward pressure on BTS price)

EDIT: And another reason market fees are better than transaction fees is that is does not change the rules 'retroactively'.  Anybody who doesn't like new market fees can choose not to trade in that market.  Whereas changes which lessen LTM benefits are forced on those who thought they got something different.  Also consider openledger who graciously faucets new user accounts.  They do so with the understanding that they get a cut of the user's transaction fees via registration (and referral, if not otherwise filled) percentages.  I think it's a bad idea to change this now.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 11, 2017, 01:23:11 am
Recent related threads:
"New Bitshares Dividend Idea" https://bitsharestalk.org/index.php/topic,23706.0.html
"Dividend feature" https://bitsharestalk.org/index.php/topic,21476.msg279498.html#msg279498
"Incentivize SmartCoin collateralization" https://bitsharestalk.org/index.php/topic,23707.0.html
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 11, 2017, 01:47:54 am
Quote
And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.

The 'yield-harvesting' "problem" mentioned above does seem to apply, because there is no way to know who actually have current debt and who shorted to themselves.

Quote
And another reason market fees are better than transaction fees is that is does not change the rules 'retroactively'.  Anybody who doesn't like new market fees can choose not to trade in that market.  Whereas changes which lessen LTM benefits are forced on those who thought they got something different.  Also consider openledger who graciously faucets new user accounts.  They do so with the understanding that they get a cut of the user's transaction fees via registration (and referral, if not otherwise filled) percentages.  I think it's a bad idea to change this now.

This issue is easy to resolve. Let CCEDK and other current LTM owners have their 80%, but stop selling new LTM, because this does not make any sense.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 01:51:06 am
Quote
And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.

The 'yield-harvesting' "problem" mentioned above does seem to apply, because there is no way to know who actually have current debt and who shorted to themselves.

Can you explain this?  It is my understanding that the blockchain retains a collateral-to-debt ratio per account and is enforced at a blockchain protocol level -- so this (debt portion) is the metric I'd choose.  How could someone short to themselves?

Quote
And another reason market fees are better than transaction fees is that is does not change the rules 'retroactively'.  Anybody who doesn't like new market fees can choose not to trade in that market.  Whereas changes which lessen LTM benefits are forced on those who thought they got something different.  Also consider openledger who graciously faucets new user accounts.  They do so with the understanding that they get a cut of the user's transaction fees via registration (and referral, if not otherwise filled) percentages.  I think it's a bad idea to change this now.

This issue is easy to resolve. Let CCEDK and other current LTM owners have their 80%, but stop selling new LTM, because this does not make any sense.

This does not change the increased-fee effect on self-registered sub-accounts.  If the changes could be applied to new users only (at a future date... once implemented), then I'm probably okay with it...
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 11, 2017, 01:56:41 am
In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 11, 2017, 03:11:11 am
Quote
And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.

The 'yield-harvesting' "problem" mentioned above does seem to apply, because there is no way to know who actually have current debt and who shorted to themselves.

Can you explain this?  It is my understanding that the blockchain retains a collateral-to-debt ratio per account and is enforced at a blockchain protocol level -- so this (debt portion) is the metric I'd choose.  How could someone short to themselves?


Someone can borrow bitUSD and send it to his other account. He is not in debt in this case and he shorts nothing on the market, but he is eligible for receiving yield. And you can't tell if someone is a legit shorter or a yield harvester just by looking at account debt, because you don't know who owns which account.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 11, 2017, 05:07:41 am
In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

saying this is scam is like saying coca cola is scam for paying out dividends. really?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 11, 2017, 05:09:01 am
In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

@alt, what's wrong with paying a rate of return to bitAsset holders?  Banks have traditionally offered interest on savings accounts.  And in crypto, chains like DASH, NEM, PIVX, and others enable users to get a return on their holdings.  There's nothing scammy about it!

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

Finally, as you know, currently the network gets 20% of collected fees.  This proposal wants to raise that to 50%.  Don't you love that?  You should.  You should love this whole proposal.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 11, 2017, 05:33:42 am
you want to attract people with money
but where is the money from?  the point is who need to pay for these money, and can they profit with pay these money to exchange something?
cocacola pay divident  because they have custom, they create value, the divident come from customers.

ponze also pay divident, but they don't create value, they have to end in a scam.

so the point is not how much you can pay, is what's the value you have create.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 11, 2017, 05:43:48 am
bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.

In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

@alt, what's wrong with paying a rate of return to bitAsset holders?  Banks have traditionally offered interest on savings accounts.  And in crypto, chains like DASH, NEM, PIVX, and others enable users to get a return on their holdings.  There's nothing scammy about it!

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

Finally, as you know, currently the network gets 20% of collected fees.  This proposal wants to raise that to 50%.  Don't you love that?  You should.  You should love this whole proposal.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: svk on April 11, 2017, 05:44:56 am
I tend to agree with alt on this. I would much rather have us start actually burning the fees instead of recycling them into the reserve pool so that bitshares would eventually go deflationary.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 11, 2017, 07:24:14 am
bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.

But Bitshares is a business. It creates value for its clients by providing:

-decentralized market place
-mechanism to create and maintain collateralized crypto fiat and crypto precious metal asset
-mechanism to create and maintain user issued asset - business or scam collateralized asset   
-it provides various tools for a business to leverage blockchain technology
-etc...
-etc...
-hopefully - provides dividend for their share holders

Lets take just one of these, decentralized market place. What is the value of Poloniex? Does it provide value?
If not, why people go there anyway and pay for their services. If does, how about additional value in organizing decentralized market place?
Should I elaborate on value of decentralized market place on top of blockchain?

What is the value of Coca Cola? Its a brown, carbonated, oversugary drink with serious health implications. It is more of a scam then many things in crypro. Just to remind you, at the moment of its introduction, it was snake oil type of a product, promising various health benefits.

Now back to Bitshares. Take all above value quote , put it on speed bullet platform and put negligibly small price tag on it (which it did in form of transaction fee). Now this is a VALUE. Who else has did it? This is "Coca Cola moment" we all hope for.

Bitshares is a DAC or DAO with huge value unlike the others that use that acronym. I would also call it decentralized autonomous business DAB with healthy revenue stream in form of transaction fees.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: paliboy on April 11, 2017, 07:38:35 am

50% - network
20% - referral
20% - bitAsset interest
10% - LTM dividend


I would support something like this.

It might be easier to get consensus in smaller steps. Maybe just get consensus on 50% for network and 50% referrals first.

 +5%

This issue is easy to resolve. Let CCEDK and other current LTM owners have their 80%, but stop selling new LTM, because this does not make any sense.

I agree that this is one option. What do you mean by "stop selling"? Remove it completely? At the beginning we could make it absurdly expensive.

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

According to http://cryptofresh.com/a/USD, the current supply is 550,155 USD. Is this number wrong?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 11, 2017, 10:33:56 am
I tend to agree with alt on this. I would much rather have us start actually burning the fees instead of recycling them into the reserve pool so that bitshares would eventually go deflationary.

you don't burn your revenue stream as a company.

BitShares is a share in a company, first and foremost. at least in my view
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 10:45:43 am
Quote
And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.

The 'yield-harvesting' "problem" mentioned above does seem to apply, because there is no way to know who actually have current debt and who shorted to themselves.

Can you explain this?  It is my understanding that the blockchain retains a collateral-to-debt ratio per account and is enforced at a blockchain protocol level -- so this (debt portion) is the metric I'd choose.  How could someone short to themselves?


Someone can borrow bitUSD and send it to his other account. He is not in debt in this case and he shorts nothing on the market, but he is eligible for receiving yield. And you can't tell if someone is a legit shorter or a yield harvester just by looking at account debt, because you don't know who owns which account.

Um, no.  You can't erase your debt just by sending bitUSD to another account.  The debt remains on the original account.  The second account now holds bitUSD with no debt.  This argument makes no sense.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 11:35:19 am
I'm just going to post my final thoughts on all this.

I think changing the transaction fee distribution is muddled with problems.  I do not favor this approach.

And while I tend to think paying a market-fee based dividend to shorters would have numerous benefits, it is rather complicated for an ordinary user, so I will shelve it here.

In finality, I think the following idea is my favorite:
* Generate revenue from smallish (0.01% to 0.1%) BTS and bitAsset "market fees"
* Distribute BTS market revenue to LTM members
* Distribute bitAsset market revenue to bitAsset holders

Benefits over transaction fee distribution:
* Market Fees produce bitAsset of choice -- no need to convert BTS to bitAsset for dividend payment.
* Does not violate LTM agreement
* Does not mess with referral expectations

"Your share in the Decentralized Exchange"

Producing revenue from market activity is a natural income source for an exchange.  Sharing it with Bitshares users makes sense to me.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 11, 2017, 11:40:19 am
bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.

In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

@alt, what's wrong with paying a rate of return to bitAsset holders?  Banks have traditionally offered interest on savings accounts.  And in crypto, chains like DASH, NEM, PIVX, and others enable users to get a return on their holdings.  There's nothing scammy about it!

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

Finally, as you know, currently the network gets 20% of collected fees.  This proposal wants to raise that to 50%.  Don't you love that?  You should.  You should love this whole proposal.

We are talking about paying the dividends by using a percentage of the fees collected.  Those are fees that users paid for utilizing the services offered by bitshares.  This is not real business being conducted?  This is not value created by bitshares? 

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 11, 2017, 11:50:17 am
Quote
And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.

The 'yield-harvesting' "problem" mentioned above does seem to apply, because there is no way to know who actually have current debt and who shorted to themselves.

Can you explain this?  It is my understanding that the blockchain retains a collateral-to-debt ratio per account and is enforced at a blockchain protocol level -- so this (debt portion) is the metric I'd choose.  How could someone short to themselves?


Someone can borrow bitUSD and send it to his other account. He is not in debt in this case and he shorts nothing on the market, but he is eligible for receiving yield. And you can't tell if someone is a legit shorter or a yield harvester just by looking at account debt, because you don't know who owns which account.

Um, no.  You can't erase your debt just by sending bitUSD to another account.  The debt remains on the original account.  The second account now holds bitUSD with no debt.  This argument makes no sense.

If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 11, 2017, 11:51:08 am
Quote
And I honestly don't see why it can't be paid only to shorters (collateralized positions, only those who have current debt).  The 'yield-harvesting' "problem" mentioned above would not seem to apply if dividends are paid only to those with current debt.

The 'yield-harvesting' "problem" mentioned above does seem to apply, because there is no way to know who actually have current debt and who shorted to themselves.

Can you explain this?  It is my understanding that the blockchain retains a collateral-to-debt ratio per account and is enforced at a blockchain protocol level -- so this (debt portion) is the metric I'd choose.  How could someone short to themselves?


Someone can borrow bitUSD and send it to his other account. He is not in debt in this case and he shorts nothing on the market, but he is eligible for receiving yield. And you can't tell if someone is a legit shorter or a yield harvester just by looking at account debt, because you don't know who owns which account.

Um, no.  You can't erase your debt just by sending bitUSD to another account.  The debt remains on the original account.  The second account now holds bitUSD with no debt.  This argument makes no sense.

You are confused here.  The problem is that people can short to themselves by just setting up another account.  What does that accomplish that is worth paying for?  This is a widely understood issue that people have dubbed "yield harvesting". 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 11:59:31 am
If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.

Bob borrows $10 from Alice.  Then Bob gives the $10 to Frank.  It changes nothing.  Frank doesn't owe Alice $10, Bob does.

You are confused here.  The problem is that people can short to themselves by just setting up another account.  What does that accomplish that is worth paying for?  This is a widely understood issue that people have dubbed "yield harvesting".

No, I'm not confused here.  The blockchain tracks collateral-to-debt ratio.  This is not a problem if dividend is sent only to those with current debt and not holders.  If dividend was to shorters and holders then yes, I see the problem.

Anyway, I'm shelving the idea in favor of the simpler "market fee revenue to holders" I outlined above.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 11, 2017, 12:18:45 pm
If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.

Bob borrows $10 from Alice.  Then Bob gives the $10 to Frank.  It changes nothing.  Bob still owes Alice $10.

Yeah, right. Now look at this: Bob creates 10 bitUSD and sends it to his own account. Not to Alice, not to Frank, but to himself. How much does Bob owes?

Tip: Bob owes nothing to nobody. Think about it.

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 12:21:36 pm
If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.

Bob borrows $10 from Alice.  Then Bob gives the $10 to Frank.  It changes nothing.  Bob still owes Alice $10.

Yeah, right. Now look at this: Bob creates 10 bitUSD and sends it to his own account. Not to Alice, not to Frank, but to himself. How much does Bob owes?

Tip: Bob owes nothing to nobody. Think about it.

Bob now has $10 in another account.  But it was borrowed from the blockchain with BTS as collateral.  He still owes the blockchain $10.  If the collateralized debt could be erased simply by moving bitUSD around, don't you think MPA would have failed a loooooong time ago?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 11, 2017, 12:23:41 pm
Benefits over transaction fee distribution:
* Market Fees produce bitAsset of choice -- no need to convert BTS to bitAsset for dividend payment.
* Does not violate LTM agreement
* Does not mess with referral expectations

"Your share in the Decentralized Exchange"

In my opinion suggested model doesn't affect LTM members at all. Lets see:
LTM member pays fee in advance (LTM mebership fee) and gets 80% cash back, on every fee they pay to the network.. It is simple bulk discount.
Proposed change ONLY affects non LTM users which pay same fee as anyone else. They doesn't get any cash back only.
Their fee goes 20% to the network and 80% to referrer and registrant coalition.

Proposed change increases network cut from 20% to 50% decreases referrer coalition cut from 80% to 20% and introduces new beneficiaries like bitAsset interests (20%) and LTM members interests(10%).

Non LTM users can decide whenever they like to pay LTM membership fee and get 80% cash back on their fees. As I understand current model, such action breaks referrers dill and network keeps all of membership fee. Am I right?
 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 12:27:08 pm
Benefits over transaction fee distribution:
* Market Fees produce bitAsset of choice -- no need to convert BTS to bitAsset for dividend payment.
* Does not violate LTM agreement
* Does not mess with referral expectations

"Your share in the Decentralized Exchange"

In my opinion suggested model doesn't affect LTM members at all. Lets see:
LTM member pays fee in advance (LTM mebership fee) and gets 80% cash back, on every fee they pay to the network.. It is simple bulk discount.
Proposed change ONLY affects non LTM users which pay same fee as anyone else. They doesn't get any cash back only.
Their fee goes 20% to the network and 80% to referrer and registrant coalition.

Proposed change increases network cut from 20% to 50% decreases referrer coalition cut from 80% to 20% and introduces new beneficiaries like bitAsset interests (20%) and LTM members interests(10%).

Non LTM users can decide whenever they like to pay LTM membership fee and get 80% cash back on their fees. As I understand current model, such action breaks referrers dill and network keeps all of membership fee. Am I right?

Ah, but the suggested model does affect LTM members in a non-obvious way.  If the LTM has self-registered sub-accounts with the expectation that the registering account gets 80% back in vesting from those accounts, then the proposal increases fees for that user.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 11, 2017, 12:35:32 pm
If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.

Bob borrows $10 from Alice.  Then Bob moves it from right pocket to left pocket.  It changes nothing.  Bob still owes Alice $10.

You are confused here.  The problem is that people can short to themselves by just setting up another account.  What does that accomplish that is worth paying for?  This is a widely understood issue that people have dubbed "yield harvesting".

No, I'm not confused here.  The blockchain tracks collateral-to-debt ratio.  This is not a problem if dividend is sent only to those with current debt and not holders.  If dividend was to shorters and holders then yes, I see the problem.

Trust me, you're confused.  The point of paying shorters would be to incentivize them to provide liquidity.  In other words, we want them to borrow bitAssets and short sell them to someone else who wants/needs to buy them.  That is useful activity and is worth rewarding.  But if that person just shorts the bitAssets to himself in another account, then that is NOT useful activity and should not be rewarded.  That is the definition of "yield harvesting".  There is no way we can know if someone is legitimately shorting to other market participants, or just yield harvesting.  That is why we can't reward bitAsset short positions.  Please stop insisting otherwise.

Anyway, I'm shelving the idea in favor of the simpler "market fee revenue to holders" I outlined above.

What you're describing is not simpler.  You keep talking about market fees vs. transaction fees, as if we should be directing one type of fee for one purpose, and another type of fee for another purpose.  Right now we have general income from fees paid, period.  That income is split 80/20 between the referral program and the network.  We're talking about shifting a portion of that income currently going to the referral program in order to 1) replenish the reserve pool 2.5x faster, 2) drive demand for bitAssets by paying interest, 3) reward LTM accounts with a dividend. 

Another thing.  You keep saying you prefer "market fee distribution" because there is "no need to convert BTS to bitAsset for dividend payment."  Again, your idea of separate "market fee distribution" and "transaction fee distribution" is overly complicated.  Also, no one is talking about converting BTS to bitAssets.  You are either confused with some other proposal on another thread. Or you are intentionally confusing matters. 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 12:41:38 pm
If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.

Bob borrows $10 from Alice.  Then Bob moves it from right pocket to left pocket.  It changes nothing.  Bob still owes Alice $10.

You are confused here.  The problem is that people can short to themselves by just setting up another account.  What does that accomplish that is worth paying for?  This is a widely understood issue that people have dubbed "yield harvesting".

No, I'm not confused here.  The blockchain tracks collateral-to-debt ratio.  This is not a problem if dividend is sent only to those with current debt and not holders.  If dividend was to shorters and holders then yes, I see the problem.

Trust me, you're confused.  The point of paying shorters would be to incentivize them to provide liquidity.  In other words, we want them to borrow bitAssets and short sell them to someone else who wants/needs to buy them.  That is useful activity and is worth rewarding.  But if that person just shorts the bitAssets to himself in another account, then that is NOT useful activity and should not be rewarded.  That is the definition of "yield harvesting".  There is no way we can know if someone is legitimately shorting to other market participants, or just yield harvesting.  That is why we can't reward bitAsset short positions.  Please stop insisting otherwise.

Shelved.

Anyway, I'm shelving the idea in favor of the simpler "market fee revenue to holders" I outlined above.

What you're describing is not simpler.  You keep talking about market fees vs. transaction fees, as if we should be directing one type of fee for one purpose, and another type of fee for another purpose.  Right now we have general income from fees paid, period.  That income is split 80/20 between the referral program and the network.  We're talking about shifting a portion of that income currently going to the referral program in order to 1) replenish the reserve pool 2.5x faster, 2) drive demand for bitAssets by paying interest, 3) reward LTM accounts with a dividend. 

Another thing.  You keep saying you prefer "market fee distribution" because there is "no need to convert BTS to bitAsset for dividend payment."  Again, your idea of separate "market fee distribution" and "transaction fee distribution" is overly complicated.  Also, no one is talking about converting BTS to bitAssets.  You are either confused with some other proposal on another thread. Or you are intentionally confusing matters.

It is my understanding that this proposal would pay bitUSD dividends for bitUSD held, which would require BTS to bitUSD conversion at some point.  If I'm mistaken, then I'm sorry. 

And I really do feel that revenue sharing from market fees is a better option.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Stan on April 11, 2017, 01:06:51 pm
In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

Why?

When I was a boy, I cut grass and put my wages in my little passbook savings account earning 5%.
Those were the days!

https://www.youtube.com/watch?v=0d8FTPv955I (https://www.youtube.com/watch?v=0d8FTPv955I)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 11, 2017, 01:08:16 pm
If you put $10 from one of your pockets to another one, how much do you owe at the end?

You can technically borrow whatever on DEX, but until you give away or sell whatever you borrowed, you are not in short position and you debt is zero. By allowing yield harvesting you are not going to increase liquidity.

Bob borrows $10 from Alice.  Then Bob gives the $10 to Frank.  It changes nothing.  Bob still owes Alice $10.

Yeah, right. Now look at this: Bob creates 10 bitUSD and sends it to his own account. Not to Alice, not to Frank, but to himself. How much does Bob owes?

Tip: Bob owes nothing to nobody. Think about it.

Bob now has $10 in another account.  But it was borrowed from the blockchain with BTS as collateral.  He still owes the blockchain $10. 

No, he does not owe nothing to nobody. -$10 in one account and +$10 in another account totals to zero.

Quote
If the collateralized debt could be erased simply by moving bitUSD around, don't you think MPA would have failed a loooooong time ago?

No collateralized debt was even created in this case to start with. Debt is created at the moment when borrowed asset actually changes hands. Sorry that you don't understand such a basic thing.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 11, 2017, 01:12:58 pm
This is all dandy, but misleading.  The claim that this proposal does not raise user fees is absolutely FALSE!

A LTM account pays 20% to network, and gets 80% back in vesting.  And anyone who has self-registered sub-accounts, is the same -- 20% to network and 80% back to the registering account.  Don't mess with this -- any changes represent a major breach of trust to anybody who paid the $80-$150 to become a Life Time Member.
I see what you mean now, you're right that to LTM users this proposal represents an increase in user fees, as up to this point the LTM benefits include 80% cashback on fees spent.

I'd argue that the only guarantee provided by the LTM membership is that the membership lasts the lifetime of your account, not that the benefits associated with an LTM account will last a lifetime. The wording on LTM membership acquisition page does not imply that the benefits are permanent, and thus are subject to change at the discretion of network consensus.

Do it with market fees.  Then there is no worry about how to convert to a chosen bitAsset, and is market driven -- more volume creates more revenue.

[ ... ]

EDIT: And another reason market fees are better than transaction fees is that is does not change the rules 'retroactively'.  Anybody who doesn't like new market fees can choose not to trade in that market.  Whereas changes which lessen LTM benefits are forced on those who thought they got something different.

So instead of changing the distribution of existing transaction fees, you're proposing new fees to be imposed on the network to pay for the dividends functionality? Wouldn't this potentially have a negative effect on the DEX considering that it would become more expensive to use, as opposed to reallocating transaction fees which would have no change in charged fees to the end user?

Also consider openledger who graciously faucets new user accounts.  They do so with the understanding that they get a cut of the user's transaction fees via registration (and referral, if not otherwise filled) percentages.  I think it's a bad idea to change this now.[/i]
I acknowledge that registrars/referrers will be negatively affected initially by the reduction in their earnings, however if the introduction of dividends/profit-sharing drives a larger user base to the BTS DEX this could be somewhat negated.

------

In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.
I disagree that this is a scam, it's simply a proposal to change the distribution of currently collected fees to pay asset holders on the BTS DEX.

I agree that we should not explicitly state a static percent as a 'guaranteed interest income', as the income is dependent on the amount of transaction fees generated by the BTS DEX. This could be lower or higher than 5% depending on future use.

bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.
The Bitshares business is the utilization of the BTS DEX - the transaction fees generated within the DEX can be utilised to pay dividends to asset holders.
External companies can certainly pay dividends using the BTS DEX (like obits/icoo, etc) but we can also do this for the BTS DEX (without issuing new tokens or buying tokens for the distribution).

---

I tend to agree with alt on this. I would much rather have us start actually burning the fees instead of recycling them into the reserve pool so that bitshares would eventually go deflationary.
You can already do this by utilising the worker proposal mechanism to burn BTS within the reserve pool.
Sending fees to the reserve pool is temporarily deflationary as it will take a long time to burn through these assets at the current spending pace.

---

Benefits over transaction fee distribution:
1. Market Fees produce bitAsset of choice -- no need to convert BTS to bitAsset for dividend payment.
2. Does not violate LTM agreement
3. Does not mess with referral expectations

"Your share in the Decentralized Exchange"

Producing revenue from market activity is a natural income source for an exchange.  Sharing it with Bitshares users makes sense to me.
We already produce revenue from market activity via transaction fees without the need for additional market fees.

I've numbered your points for easier referencing:
1. You can pay transaction fees in assets other than BTS, so we can already immediately distribute bitUSD to bitUSD holders instead of converting it from bitUSD -> BTS prior to redistribution. Unless this is an automated process right now? The committee in charge of the fees assigned to the reserve pool could provide additional information here.
2. The agreement was that the membership you purchased was to exist for a lifetime, not that the benefits were permanent for the lifetime of your account. These benefits should be subject to change, given sufficient network consensus.
3. The referral system being allocated 80% of transaction fees was unfair to begin with, there was an expected replacement income stream for asset holders in the form of a bond market which never materialized. It's time for asset holders to have a slice of the pie allocated to them. Referrals don't keep users around, dividends do.

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: kani on April 11, 2017, 01:29:33 pm
Benefits over transaction fee distribution:
1. Market Fees produce bitAsset of choice -- no need to convert BTS to bitAsset for dividend payment.
2. Does not violate LTM agreement
3. Does not mess with referral expectations

"Your share in the Decentralized Exchange"

Producing revenue from market activity is a natural income source for an exchange.  Sharing it with Bitshares users makes sense to me.
We already produce revenue from market activity via transaction fees without the need for additional market fees.

I've numbered your points for easier referencing:
1. You can pay transaction fees in assets other than BTS, so we can already immediately distribute bitUSD to bitUSD holders instead of converting it from bitUSD -> BTS prior to redistribution. Unless this is an automated process right now? The committee in charge of the fees assigned to the reserve pool could provide additional information here.
2. The agreement was that the membership you purchased was to exist for a lifetime, not that the benefits were permanent for the lifetime of your account. These benefits should be subject to change, given sufficient network consensus.
3. The referral system being allocated 80% of transaction fees was unfair to begin with, there was an expected replacement income stream for asset holders in the form of a bond market which never materialized. It's time for asset holders to have a slice of the pie allocated to them. Referrals don't keep users around, dividends do.

Thank you for the thoughtful reply.

In regards to #1 response:

Yes, that is theoretically true.  But the number of transactions which are paid in bitAssets is very small.  Which means it is not terribly useful source of revenue for a bitAsset dividend.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 11, 2017, 01:41:29 pm
let me know if  I'm misunderstanding
I thought you are talking about attract more users with something like earn easy money.
you think this is huge, even want to change many rules.

my point is there is no  easy money totally,
we have profit as a DEX, but I don't think it's a good idea to wast these money attract some fake user.
I have no interesting in this easy money trick

if you are talking about something like adjust balance for the shorters and longers, it should be another thread.
bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.

In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

@alt, what's wrong with paying a rate of return to bitAsset holders?  Banks have traditionally offered interest on savings accounts.  And in crypto, chains like DASH, NEM, PIVX, and others enable users to get a return on their holdings.  There's nothing scammy about it!

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

Finally, as you know, currently the network gets 20% of collected fees.  This proposal wants to raise that to 50%.  Don't you love that?  You should.  You should love this whole proposal.

We are talking about paying the dividends by using a percentage of the fees collected.  Those are fees that users paid for utilizing the services offered by bitshares.  This is not real business being conducted?  This is not value created by bitshares?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: BunkerChainLabs-DataSecurityNode on April 11, 2017, 01:42:39 pm
Been reading.. just wanted to share a few thoughts on this since Bunkerchain Labs created the profit sharing code that is mostly being talked about here.

Learn to walk before you run. What we have available as a profit sharing code mechanism will provide value to end users who use UIAs and will also enable profit sharing of smartcoins deriving benefits to holders of said currencies based on volumes alone.

I agree the refer program is a mess, which is why we have completely redone it in Peerplays. Until that can be settled I would not even mention it in Bitshares.. let those who have it continue to use it, but remove all mention of it for now.

Stay away from the +5% not because it sounds a certain way, but once you start promising percent points on things in a network that is based on set fees and not percent points, you will just be setting up the network for failure.

Stop calling it deflationary.. call it profitability.

It's great to dream of all the ways things can be changed.. but all of this comes to a head when you find out how much it will all cost to develop and deploy... not to mention the computational costs that have to be considered. Otherwise you end up with this:


(https://www.wired.com/wp-content/uploads/2014/06/the-homer-inline4.jpg)

Graphene (I didn't say Bitshares) has a lot in its toolkit... if we are going to offer a Bitshares DEX, then strip it down and make it the best damn DEX anyone has ever seen:

(http://charged.io/wp-content/uploads/2016/08/Bugatti-Chiron-rev-e1472120666894.jpg)

So keep it simply... walk with the lowest hanging fruit of what is available for Bitshares for now:



All of these things are within reach in a far shorter period of time than the multitudes of concepts that have been discussed that will require far more extensive specing out and testing beyond just the casual forum discussion. Everything I have listed above has been completely iterated, well planned, and thought through. Bitshares community just needs to make the decision to use them.

All of these things can be tied into a marketing campaign as well as things are introduced. The best way to make news is to have news worthy updates.

Whatever else you want to imagine Bitshares to be, give it another name, and give it another project to build from. Bitshares needs to continue to make the steps its been making to leave behind operating like "The Homer".

Bitshares should be exchanging all world commodities, currencies, crypto assets, and stocks completely decentralized by 2019.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 11, 2017, 02:38:04 pm
let me know if  I'm misunderstanding
I thought you are talking about attract more users with something like earn easy money.
you think this is huge, even want to change many rules.

my point is there is no  easy money totally,
we have profit as a DEX, but I don't think it's a good idea to wast these money attract some fake user.
I have no interesting in this easy money trick

if you are talking about something like adjust balance for the shorters and longers, it should be another thread.
bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.

In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

@alt, what's wrong with paying a rate of return to bitAsset holders?  Banks have traditionally offered interest on savings accounts.  And in crypto, chains like DASH, NEM, PIVX, and others enable users to get a return on their holdings.  There's nothing scammy about it!

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

Finally, as you know, currently the network gets 20% of collected fees.  This proposal wants to raise that to 50%.  Don't you love that?  You should.  You should love this whole proposal.

We are talking about paying the dividends by using a percentage of the fees collected.  Those are fees that users paid for utilizing the services offered by bitshares.  This is not real business being conducted?  This is not value created by bitshares?

No, please tell me if *I* am misunderstanding.  Are you saying that people who buy bitAssets are "fake users"?  Maybe you should let @bitcrab know about this.  After all, his transwiser business depends on demand for bitAssets.  Without such demand, he has no business.  And we know that demand is much lower now than it was in the past when bitAsset holders were able to earn a rate of return on their holdings.

So tell me, do you want bitcrab's transwiser business to have customers?  What about other shorters and traders in general?  Do you want an active market for bitAssets where a large number of users means there is always market activity because then, aside from the traders, there will always be someone looking to put some money into bitAssets...and there will always be someone looking to take money out?  There is no point in having bitAsset order books just so traders can trade back and forth with each other if there is no real use case for the asset they are trading.  Now THAT would be fake users!

So tell me, what is wrong with offering a better interest rate to people who store some money in bitUSD instead of in the bank?  It is very early in the game for cryptocurrencies right now.  To attract regular people, we need to give some extra incentive. In the future, it may not be necessary.  But at this point, it IS necessary.  This is just smart business.

Lastly, no one is talking about "changing many rules".  We are only talking about shifting a portion of the income that currently goes to the referral program (see below).  This enables us to: 1) replenish the reserve pool 2.5x faster, 2) drive much more demand for bitAssets, and 3) make the referral program more effective by rewarding LTM accounts.  This would be a huge win for all parties involved, and would be extremely bullish for BTS.



Current fee allocation:
20% -- network
80% -- referral

Proposed fee allocation:
50% -- network
20% -- referral program
20% -- interest to bitAsset holders
10% -- dividend to LTM accounts
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Geneko on April 11, 2017, 03:08:00 pm

  • Implement our profit sharing code thanks to Peerplays (http://www.peerplays.com) development


How does profit sharing work?

Like most online gaming platforms, the Peerplays network collects a small percentage of each jackpot, which is called the rake fee. These fees are automatically sent by the blockchain into a virtual account, where they accumulate until they reach a certain threshold or time interval. Then, they are automatically distributed to the accounts of Peerplays core token holders, according to the total percentage of core tokens belonging to each account.


This is closest to bitshares idea as you can get. However the trick is in details.

How does the referral program work?

Imagine if you refer a friend to open a bank account, and then for doing this you were automatically entitled to a percentage of every fee they paid the bank from that point forward. This is how the Peerplays account referral system is set up.
Each time a player registers a new account on Peerplays, someone must pay the initial account registration fee. This can be done through a faucet that is operated by an tournament hosting partner, or by any other Peerplays user. This means that each new account is tied directly to the account which paid the fee to register them. Peerplays then directs a percentage of every network fee paid by the new account from that point forward – every asset creation fee, rake fee, trading fee, etc., back into the account of the person who registered it. The remaining percentage then goes to the network to be paid out as profit sharing.


This looks the same as Bitshares model. But as said the trick is in details.
 
Could you please explain, in plain language, how the revenue split work in Peerplays?

If we decide to accept Peerplays model could you help implement it. We could organize worker proposal.
You are also long time member of Bitshares. Dont you feel responsible for its destiny too?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 11, 2017, 03:26:38 pm
sorry I don't think there is any help with this.
in fact I prefer bitasset holder should pay interest for shorters  in many condition.
look at our SILVER , it's almost equal 1.2-1.3 real SILVER,
and don't foget 1 year ago bitUSD equal 1.1 fiat USD in a very long time.

it's very complex, let's just keep it simple, don't change anything.

let me know if  I'm misunderstanding
I thought you are talking about attract more users with something like earn easy money.
you think this is huge, even want to change many rules.

my point is there is no  easy money totally,
we have profit as a DEX, but I don't think it's a good idea to wast these money attract some fake user.
I have no interesting in this easy money trick

if you are talking about something like adjust balance for the shorters and longers, it should be another thread.
bank have many real business to pay the divident.
where is the business based bitshares?
I believe we'll get divident too after we have some real business.
pay divident is the result, not the reason.

In fact I feel sick for the "+5%"
this title make Bitshares looks like a scam
I wish never see this title in the official site.

@alt, what's wrong with paying a rate of return to bitAsset holders?  Banks have traditionally offered interest on savings accounts.  And in crypto, chains like DASH, NEM, PIVX, and others enable users to get a return on their holdings.  There's nothing scammy about it!

Also, Bitshares used to pay an interest rate of return and had $1M+ bitUSD in circulation.  Now we pay no such interest and have just $100k bitUSD in circulation.  Is this just a coincidence?

Finally, as you know, currently the network gets 20% of collected fees.  This proposal wants to raise that to 50%.  Don't you love that?  You should.  You should love this whole proposal.

We are talking about paying the dividends by using a percentage of the fees collected.  Those are fees that users paid for utilizing the services offered by bitshares.  This is not real business being conducted?  This is not value created by bitshares?

No, please tell me if *I* am misunderstanding.  Are you saying that people who buy bitAssets are "fake users"?  Maybe you should let @bitcrab know about this.  After all, his transwiser business depends on demand for bitAssets.  Without such demand, he has no business.  And we know that demand is much lower now than it was in the past when bitAsset holders were able to earn a rate of return on their holdings.

So tell me, do you want bitcrab's transwiser business to have customers?  What about other shorters and traders in general?  Do you want an active market for bitAssets where a large number of users means there is always market activity because then, aside from the traders, there will always be someone looking to put some money into bitAssets...and there will always be someone looking to take money out?  There is no point in having bitAsset order books just so traders can trade back and forth with each other if there is no real use case for the asset they are trading.  Now THAT would be fake users!

So tell me, what is wrong with offering a better interest rate to people who store some money in bitUSD instead of in the bank?  It is very early in the game for cryptocurrencies right now.  To attract regular people, we need to give some extra incentive. In the future, it may not be necessary.  But at this point, it IS necessary.  This is just smart business.

Lastly, no one is talking about "changing many rules".  We are only talking about shifting a portion of the income that currently goes to the referral program (see below).  This enables us to: 1) replenish the reserve pool 2.5x faster, 2) drive much more demand for bitAssets, and 3) make the referral program more effective by rewarding LTM accounts.  This would be a huge win for all parties involved, and would be extremely bullish for BTS.



Current fee allocation:
20% -- network
80% -- referral

Proposed fee allocation:
50% -- network
20% -- referral program
20% -- interest to bitAsset holders
10% -- dividend to LTM accounts
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: nomoreheroes7 on April 11, 2017, 03:35:37 pm
sorry I don't think there is any help with this.
in fact I prefer bitasset holder should pay interest for shorters  in many condition.
look at our SILVER , it's almost equal 1.2-1.3 real SILVER,
and don't foget 1 year ago bitUSD equal 1.1 fiat USD in a very long time.

it's very complex, let's just keep it simple, don't change anything.

(http://cdn.playbuzz.com/cdn/1f50f4f6-0e7d-4648-9a81-d6f1f18f51ce/a436803c-a855-4eee-b6a7-e9122e35dd6f.jpg)

I feel like this is the same thing that happens every time an idea is put forth on the forums.....
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 11, 2017, 06:22:09 pm

I would argue perhaps we should offer 1% to anyone who holds BTS. It's a small amount but would be a great marketing tool and generate interest. Just like the dredit card companies like avertising 1% cashback on purchase.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: cryptosig on April 11, 2017, 10:55:54 pm
You guys are being dumb, so I have to comment.

I have a choice to store my assets here or at an exchange that is paying me 0.03%-0.6% per day to loan it to the short traders. I would rather store it here because this exchange is safer, but you don't give me a reason to do that, so instead I keep my BTC there and hedge against value lost.

Somehow the "brick and mortar" exchanges seem to be making a profit and sharing profits. So maybe your system needs tweaking. If you can't get your exchange to perform better then the regular exchanges, and pay loans on assets, then why even bother? Just make it work like every other exchange out there that pays people to loan to short traders, make a lenders section and pay people to lend out to the short traders. Hell the exchange will still make money off the spending of BTS to publish the loan messages on the block chain, making everyone get paid.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 12, 2017, 12:52:01 am

I would argue perhaps we should offer 1% to anyone who holds BTS. It's a small amount but would be a great marketing tool and generate interest. Just like the dredit card companies like avertising 1% cashback on purchase.
Yeah, I believe that dividends should be distributed against both BTS and BitAsset holders. How much more should we incentivise holding bitAssets over BTS thpough?
Should it be that bitAsset fees go to bitAsset holders, and BTS goes to BTS holders?
I was listening to the 3rd Bitshares hangout (https://soundcloud.com/beyond-bitcoin-hangouts/bts3-w-christopher-hering (https://soundcloud.com/beyond-bitcoin-hangouts/bts3-w-christopher-hering)) and they were talking about users specifying the asset they wanted their dividend to be payed in, which would be pretty cool!


Stay away from the +5% not because it sounds a certain way, but once you start promising percent points on things in a network that is based on set fees and not percent points, you will just be setting up the network for failure.
What about 'x% on anything' a variable interest rate, or do you think this is more confusing than just 'earn a share of the BTS DEX profits' ?

  • 1.  Implement our profit sharing code thanks to Peerplays (http://www.peerplays.com) development
  • 2.  Implementing Chainbase (thanks to steem) so that we can have real trading tools in the GUI with historical charts and graphs. This will attract a lot of high end traders who want to be able to do analysis but cannot due to lack of metric tools in our GUI
Numbered your list for easier referencing.

1. The code you refer to, is that this: https://github.com/BunkerChainLabsInc/peerplays-profitshare Or are you referring to the updated Peerplays code base? If the later, could you elaborate on the software license in use for Peerplays? The above github repo is MIT, but I'm unsure about peerplays itself.
2. This? https://github.com/bytemaster/chainbase What are the potential benefits of integration for Bitshares?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: sahkan on April 12, 2017, 03:17:07 am
You have some interesting thoughts here for the way ahead ... So I thought maybe I will chime in as a new guy on the Bitshares scene. Has anyone of you done Amway? Well, it's a door to door MLM company selling cleaning supplies (and a lot more now days) but if you ever did it, they would ask you to listen to these success stories. I remember on one of the tapes the guys says, "I met guy X, recruited him and he quit, but before he did he introduced me to Y, and Y quit, but before he did he introduced me to Z and a month later Z went DIAMOND (build a sizable network)."   The point being let the system work  itself out. The Bitshares referral program has a very good structure that if properly advertised and taken advantage of, can create a stream of revenue for the users and increase the use of the exchange. It might catch on when people least expect it.

I could also see support for a dividend to all BTS holders (again a small adjustment, so no more than 10% of the fees) - the question here is how would we handle distro to exchange accounts, and would excluding them be the right thing to do?
The advantage of distributing the dividend to all BTS holders is that it would encourage them to keep their BTS on DEX and trade there vs centralized exchanges where they would not get any dividends on their holdings.

In all, I would be very careful of introducing any drastic changes and new fee structures until we start taking full advantage of what is already in place.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: lafona on April 12, 2017, 03:21:17 am
My concern with the idea of paying interest to USD is that it incentivizes activity which hasn't been proven to generate profit for the Dex. While the idea the locked collateral reduces supply makes sense, I think it provides minimal price support as those creating the assets are already in for the long haul and aren't any more likely to hold because of their leveraged position. If any thing thing these people are now less likely to hold as they now the chance of selling against their will from a margin call. In addition if you view the amount to of bitasset as somewhat fixed (finite number of shorters with finite amount of funds) then increased holding of bitassets puts additional strain on those shorters in their efforts to provide liquidity.

IMO the end goal of any new incentive should  be to make the Dex more profitable by increasing the number of actions and fees generated. I think increases in the speed which USD changes hands would be more beneficial than an increase in the amount held. I think the increase in liquidity lately has been encouraging and I think an incentive be to increase liquidity and market making might be a better choice. Just my thoughts. I don't want to discourage the pursuit of improvement, but at the same time wanted to express my concern.

Sent from my XT1080 using Tapatalk

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 12, 2017, 03:39:15 am
My concern with the idea of paying interest to USD is that it incentivizes activity which hasn't been proven to generate profit for the Dex. While the idea the locked collateral reduces supply makes sense, I think it provides minimal price support as those creating the assets are already in for the long haul and aren't any more likely to hold because of their leveraged position. If any thing thing these people are now less likely to hold as they now the chance of selling against their will from a margin call. In addition if you view the amount to of bitasset as somewhat fixed (finite number of shorters with finite amount of funds) then increased holding of bitassets puts additional strain on those shorters in their efforts to provide liquidity.

IMO the end goal of any new incentive should  be to make the Dex more profitable by increasing the number of actions and fees generated. I think increases in the speed which USD changes hands would be more beneficial than an increase in the amount held. I think the increase in liquidity lately has been encouraging and I think an incentive be to increase liquidity and market making might be a better choice. Just my thoughts. I don't want to discourage the pursuit of improvement, but at the same time wanted to express my concern.

Sent from my XT1080 using Tapatalk

MLM is great when you have a product that has a large audience. First, I don't think the market for traders who want to use the DEX is significant enough to make a large dent for MLM. Also the MLM is not really MLM since it's only 1 level. You don't anything for the people the person you brought in brings in. 

Paying out dividends is a much larger audience to reach. Most people are lazy. They want to park there money somewhere and gain some amount of interest or a dividend. If we want to attract traders then a bond market with familiar margin trading is better option.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 12, 2017, 05:10:56 am
bitAssets represent the primary value proposition of Bitshares.  Increased demand for bitAssets will attract more liquidity providers.  More liquidity will attract more traders.  And so on.  This positive feedback loop would be accompanied by a rising price of BTS. 

So what is the missing ingredient?  Duh, it's demand for bitAssets!  We have a golden opportunity to fix this problem.  I don't know why people are having such a hard time understanding this.   But we better figure it out soon, otherwise we should just give up. 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 12, 2017, 05:37:19 am
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 12, 2017, 05:59:30 am
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.
It's not a either or. We need both. We need traders and we holders. Traders don't want to hold assets, they want to arbitrage between assets. Holders want stability.

Sent from my SM-N920T using Tapatalk

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: valtr on April 12, 2017, 06:22:17 am
Quote
It's not a either or. We need both. We need traders and we holders. Traders don't want to hold assets, they want to arbitrage between assets. Holders want stability.

Sent from my SM-N920T using Tapatalk
That is it. Nothing more to say.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 12, 2017, 06:25:54 am
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: alt on April 12, 2017, 06:26:49 am
I mean the balance between shorters and longers are dynamic,
you can't give a simple rule to encourage shorter or longer
but the free market have already give the best direct to keep the balance.
when you see the bid price of CNY/BTS market is much high than others, it means we need encourage CNY  holders, you sell BTS for CNY then you get profit.
when you see the ask price of SILVER/BTS market is much lower than others, it means we need encourage SILVER shorters, you borrow SILVER, sell for BTS, then you get profit.
if you want to get rid of the price change risk of BTS, you just need to borrow CNY and SILVER, sell SILVER for CNY, arbit bot will take your order, and you will get your profit.

be a market maker, keep the balance, increase the liquid, you create value for Bitshares, and you get profit. this is the right way.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: sahkan on April 12, 2017, 07:59:37 am
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 12, 2017, 08:17:23 am
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 12, 2017, 12:38:00 pm
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

And there is no broker to provide liquidity at 1% spread. This is the idea behind DEX, you are your own broker. In this case, liquidity comes only with mass adoption. No mass adoption -> no liquidity, no liquidity -> no mass adoption, ... and so on in circle.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Thom on April 12, 2017, 01:48:22 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?

Why not you fav? Your idea, take it and run with it. Just think, if you put the same effort into writing ken an email to look at key posts in this thread you believe are convincing, the task you're requesting others to do would already be done.

I know @kenCode and his team have a full plate of work, so I am doubtful on that basis alone he'll be interested in taking this on, but it never hurts to ask. IMO it's a worthy project that has great potential. Whether he agrees or wants to invest the effort to assess the code and then get a proposal written is any one's guess but his.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 12, 2017, 03:15:45 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?

Why not you fav? Your idea, take it and run with it. Just think, if you put the same effort into writing ken an email to look at key posts in this thread you believe are convincing, the task you're requesting others to do would already be done.

I know @kenCode and his team have a full plate of work, so I am doubtful on that basis alone he'll be interested in taking this on, but it never hurts to ask. IMO it's a worthy project that has great potential. Whether he agrees or wants to invest the effort to assess the code and then get a proposal written is any one's guess but his.
We could all discuss it in the next Bitshares hangout in person too.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 12, 2017, 03:19:53 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?

Why not you fav? Your idea, take it and run with it. Just think, if you put the same effort into writing ken an email to look at key posts in this thread you believe are convincing, the task you're requesting others to do would already be done.


nope, not my idea, and I waste more than enough time on bts/projects :)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 12, 2017, 03:22:38 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?

Why not you fav? Your idea, take it and run with it. Just think, if you put the same effort into writing ken an email to look at key posts in this thread you believe are convincing, the task you're requesting others to do would already be done.

I know @kenCode and his team have a full plate of work, so I am doubtful on that basis alone he'll be interested in taking this on, but it never hurts to ask. IMO it's a worthy project that has great potential. Whether he agrees or wants to invest the effort to assess the code and then get a proposal written is any one's guess but his.
We could all discuss it in the next Bitshares hangout in person too.

find a dev > get a quotation > then discuss > get shit done

or discuss on a hangout and spin in cycles like this thread.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Thom on April 12, 2017, 03:25:45 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?

Why not you fav? Your idea, take it and run with it. Just think, if you put the same effort into writing ken an email to look at key posts in this thread you believe are convincing, the task you're requesting others to do would already be done.


nope, not my idea, and I waste more than enough time on bts/projects :)

Quote
find a dev > get a quotation > then discuss > get shit done

this^^^

It wasn't your idea to contact BitShares Munich via email? Who's was it then? Me thinks it was you  ;)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 12, 2017, 05:01:08 pm
-

@Thom I already organised and managed a project (https://bitsharestalk.org/index.php/topic,23898.msg303617.html#msg303617) recently. apart from not getting paid for it, neither me nor any of the sponsors even received a "thank you". so I'd rather use the time to earn money for myself :)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: tbone on April 12, 2017, 05:08:02 pm
I mean the balance between shorters and longers are dynamic,
you can't give a simple rule to encourage shorter or longer
but the free market have already give the best direct to keep the balance.
when you see the bid price of CNY/BTS market is much high than others, it means we need encourage CNY  holders, you sell BTS for CNY then you get profit.
when you see the ask price of SILVER/BTS market is much lower than others, it means we need encourage SILVER shorters, you borrow SILVER, sell for BTS, then you get profit.
if you want to get rid of the price change risk of BTS, you just need to borrow CNY and SILVER, sell SILVER for CNY, arbit bot will take your order, and you will get your profit.

be a market maker, keep the balance, increase the liquid, you create value for Bitshares, and you get profit. this is the right way.

Yes, the market will always find a balance.  That's my point.  If the demand increases, then the supply will increase to meet it.  Why?  Because it's profitable for suppliers to do so.  @bitcrab is ready to supply more bitUSD, but he has said there is not enough demand.  So let's increase the demand by giving people more reasons to want bitAssets (esp. bitUSD and bitCNY to start)! 

For now that means offering an interest rate better than any bank (the interest rate can be reduced over time as bitAssets become more useful in commerce and natural demand increases).  Then supply will increase to meet this increased demand and find the balance.  With more users wanting to get in and out of bitAssets, there will be more opportunities for suppliers (market makers), and more opportunities for ordinary traders as well. 

Supply will definitely rise, but if it does not meet demand fast enough (which is a GREAT problem to have), then we can always offer some liquidity rewards with perhaps 5-10% of fees (coming from all the extra funds going back to the network).  These are the kinds of things we need to be doing, not just sitting around hoping something will happen. We have to MAKE it happen.

Either people here will understand this and we'll make the necessary adjustments so Bitshares can flourish.  Or we won't and Bitshares can just continue limping along.  We have a choice here.  Are we going to be winners or losers?  Now is the time to decide once and for all.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: sahkan on April 12, 2017, 05:35:20 pm
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed. On the other hand if I get bitSILVER I am making a bet that it will go up and since I can't get real silver out of it it's not really an asset, is it?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 12, 2017, 05:50:07 pm

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed.

wrong, tether is not backed.

Quote
PURCHASE AND REDEMPTION OF TETHERS: The Site is an environment for the purchase and redemption of Tethers. Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency.
There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Pheonike on April 12, 2017, 06:00:18 pm
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed. On the other hand if I get bitSILVER I am making a bet that it will go up and since I can't get real silver out of it it's not really an asset, is it?

Do you want the asset or the cash equivalent?  Once you get into fiat and physical you will always have a counter party risk.  So you have to decide do which do you trust more, the blockchain or or another party to secure and maintain the asset for you.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 12, 2017, 06:10:12 pm
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed. On the other hand if I get bitSILVER I am making a bet that it will go up and since I can't get real silver out of it it's not really an asset, is it?

Yes, it is really an asset. No, it is not silver or something backed by silver. It is an asset which value is pegged to value of silver.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 12, 2017, 08:17:30 pm
so who's formulating the idea and approaching blockpay.ch (via email)?

so... anyone?

Why not you fav? Your idea, take it and run with it. Just think, if you put the same effort into writing ken an email to look at key posts in this thread you believe are convincing, the task you're requesting others to do would already be done.

I know @kenCode and his team have a full plate of work, so I am doubtful on that basis alone he'll be interested in taking this on, but it never hurts to ask. IMO it's a worthy project that has great potential. Whether he agrees or wants to invest the effort to assess the code and then get a proposal written is any one's guess but his.
We could all discuss it in the next Bitshares hangout in person too.

find a dev > get a quotation > then discuss > get shit done

or discuss on a hangout and spin in cycles like this thread.
And we can't get 'dev > quote > discuss > get shit down' done in a hangout instead of emailing a single company?  I believe that the Bitshares hangouts are tremendously productive and more effective than emails.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: mf-tzo on April 12, 2017, 08:30:45 pm
what about the following:

bitasset holders should earn a daily interest depending on the peg? i.e. if bitusd / usd peg is 1.05 / 1 bitusd holders earn 5% if bitgold / gold is 1.2 / 1 bitgold holders earn 20%.

At the same time people who short bitassets earn the respective % in bts yield. Those who short bitgold putting bts collateral and assuming bitgold/gold to 20% away from peg should earn 20% bts daily yield in their bts collateral..

I haven't thought this through, just throwing an idea that just came out of my head before I forget it.

 
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: sahkan on April 13, 2017, 06:57:13 am

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed.

wrong, tether is not backed.

Quote
PURCHASE AND REDEMPTION OF TETHERS: The Site is an environment for the purchase and redemption of Tethers. Once you have Tethers, you can trade them, keep them, or use them to pay persons that will accept your Tethers. However, Tethers are not money and are not monetary instruments. They are also not stored value or currency.
There is no contractual right or other right or legal claim against us to redeem or exchange your Tethers for money. We do not guarantee any right of redemption or exchange of Tethers by us for money. There is no guarantee against losses when you buy, trade, sell, or redeem Tethers.

@fav I like your attention to detail. But ...

All tethers are pegged at one-to-one with matching fiat currency (e.g., 1 USD₮ = 1 USD) and are backed 100% by actual assets in our reserve account. As a fully transparent company, we publish a real-time record of all value held and transferred in and out of our reserve account.

Tethers can be securely stored, sent and received across the blockchain and are redeemable for cash (the underlying asset) pursuant to Tether Limited’s terms of service.


What you quoted is their Term of Service where they state that they do not have a contractual obligation to exchange USDT to any currency. But that does not change the fact that it is still backed 1 to 1.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: sahkan on April 13, 2017, 07:08:22 am
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed. On the other hand if I get bitSILVER I am making a bet that it will go up and since I can't get real silver out of it it's not really an asset, is it?

Yes, it is really an asset. No, it is not silver or something backed by silver. It is an asset which value is pegged to value of silver.

I know some of the long time members here have strong feelings about bitAssets, I am not trying to change that. But atm I don't see it as an asset.

And here is some other people view it: http://coinjournal.net/what-is-a-bitasset/  A bitasset is basically a derivative built on top of a cryptocurrency through the use of smart contracts. As a simple explanation, it’s useful to think of it as a bet...
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: chryspano on April 13, 2017, 09:56:24 am
Quote
...are backed 100% by actual assets in our reserve account.

lol, what could possible go wrong here?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on April 13, 2017, 10:15:16 am
Quote
...are backed 100% by actual assets in our reserve account.

lol, what could possible go wrong here?

Maybe the bank could block them... Oh wait that's currently happening
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on April 13, 2017, 12:00:39 pm
I want 1000 SILVER without interest even -1% interest, can anybody sell SILVER to me?

you don't need to encourage the shorter or the longer, you need to encourage the traders, reward the traders.
liquid is the real problem we need to resolve.
with good liquid, more people will accept holder bitasset, more people will accept shorter bitasset. this is what happened today in bitCNY/bitUSD

I will ask people borrow CNY/USD/SILVER..., and be a market maker in pairs: CNY/USD, USD/SILVER, CNY/SILVER,
and this will give you more profit than the poor interest.

Most new comers to DEX do not understand very well how bitAssets work. For example in my mind BitSilver should be backed by Silver (not BTS) and a broker of that asset should provide liquidity (maybe 1% over and 1% under the spot price for buy/sell). If I can't buy and sell at the current real market price or get that silver shipped to me, then what's the point of holding it?
You want exposer to the value of silver not the actual metal. If you truly want silver go out and buy some physical silver. That applies to all the assests on the DEX. You are exposed to the underlining assets value, not physical properties. These are derivatives. Also if the value depended on a 3rd party having the physical good then that introduces counterparts risk and adds centralization which is goes against being a DEX.

Sent from my SM-N920T using Tapatalk

No, I don't want exposure to the price. I want to invest in an asset, so if get USDT I am sure to get $1 for my 1 USDT because it's backed. On the other hand if I get bitSILVER I am making a bet that it will go up and since I can't get real silver out of it it's not really an asset, is it?

Yes, it is really an asset. No, it is not silver or something backed by silver. It is an asset which value is pegged to value of silver.

I know some of the long time members here have strong feelings about bitAssets, I am not trying to change that. But atm I don't see it as an asset.

And here is some other people view it: http://coinjournal.net/what-is-a-bitasset/  A bitasset is basically a derivative built on top of a cryptocurrency through the use of smart contracts. As a simple explanation, it’s useful to think of it as a bet...

No feelings has nothing to do with this. BitAsset is a derivative, and it is an asset, as good as many other assets in real world.

https://www.google.com/search?client=ubuntu&channel=fs&q=asset+definition&ie=utf-8&oe=utf-8

Quote
as·set
ˈaset/
noun
noun: asset; plural noun: assets

    a useful or valuable thing, person, or quality.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: JonnyB on April 13, 2017, 01:22:55 pm
Bitassets are derivative contracts

Derivatives contracts are assets
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: sahkan on April 13, 2017, 03:37:30 pm
Quote
...are backed 100% by actual assets in our reserve account.

lol, what could possible go wrong here?
Yes, a lot. I don't negate that.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 15, 2017, 02:01:32 pm
How much "interest" do our miners make daily?  Do they want to share it with the users of their chain?

Or do they choose to keep all the freshly created BTS for themselves?

Your questions were answered long ago when you chose not to subsidize liquidity, and so the capable man who wanted to code liquidity incentives for us for free, left.

Back then (before we voted to give our miners a raise) we said it would be too dillutive to incentivize market makers.  How hypocritical are we?
Witnesses (what you're referring to as miners) draw funds from the reserve pool, we're talking about reallocating fees for the purpose of profit sharing for asset holders.
The guy that left wasn't going to do it for free.
Who cares about the hypocracy of others for past forgotten conversations? The point of this thread is to look forwards not backwards.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fractalnode on April 15, 2017, 03:18:15 pm
If you reward a short sale, you increase the price of the BTS
If you pay interest for everyone who has bitAssets, then you will create bitAsset buy wall,
which will make it difficult to increase the BTS price.

That's why I do not like this idea.
But I think it would be most beneficial to pay dividends depending on the amount of collateral and open orders on DEX and only for LTM.
It should also be easier to implement.

Similar ideas were discussed here:
https://bitsharestalk.org/index.php/topic,23706.0.html

Anyway, first we have to be able to pay dividends or any other kind of simple profit sharing

Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 15, 2017, 04:46:53 pm
If you reward a short sale, you increase the price of the BTS
If you pay interest for everyone who has bitAssets, then you will create bitAsset buy wall,
which will make it difficult to increase the BTS price.

That's why I do not like this idea.
But I think it would be most beneficial to pay dividends depending on the amount of collateral and open orders on DEX and only for LTM.
It should also be easier to implement.

Similar ideas were discussed here:
https://bitsharestalk.org/index.php/topic,23706.0.html

Anyway, first we have to be able to pay dividends or any other kind of simple profit sharing
Less BTS in circulation (more BTS locked up in bitAssets) means less BTS on the sell side thus easier to increase the BTS price.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fractalnode on April 15, 2017, 05:25:40 pm
If you reward a short sale, you increase the price of the BTS
If you pay interest for everyone who has bitAssets, then you will create bitAsset buy wall,
which will make it difficult to increase the BTS price.

That's why I do not like this idea.
But I think it would be most beneficial to pay dividends depending on the amount of collateral and open orders on DEX and only for LTM.
It should also be easier to implement.

Similar ideas were discussed here:
https://bitsharestalk.org/index.php/topic,23706.0.html

Anyway, first we have to be able to pay dividends or any other kind of simple profit sharing
Less BTS in circulation (more BTS locked up in bitAssets) means less BTS on the sell side thus easier to increase the BTS price.


I know and I agree with you, but I think if you compare these two ideas.
It seems to me that the dividend from the collateral amount gives less friction in the market. Because in that way you only create a buy pressure on BTS for borrowed bitUSD, bitCNY
And the growth of BTS would be faster because you immediately involve an existing community that already knows short sales in Bitshares and it will cause the first wave of price rises.
The rest of the people at that time will buy BTS without knowing much about it because they will just follow money. They will learn about Bitshares later and this will cause another great surge of growth.

Besides, the capital that will be migrating to BTS will definitely come with a vast majority of other crypto, and this capital will not bother  1% -5% of the profit
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: cryptosig on April 16, 2017, 01:29:08 am
Very simply I will use whatever system, be that BTS, some ETH solution when that comes along, or some multisignature solution that correctly replicates what I get at poloniex or bitfinex. Where I can store, safely on bloackchain, my crypto assets and earn interest from loans that I make until I have decided to sell them on the exchange or remove them from the exchange.

I can't see getting anyone to use Bitshares over exchanges without the incentive of interest. Nor can I see a use case where I could convince a merchant to store dollars in Bitshares over Paypal without interest on those dollars.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Taconator on April 20, 2017, 01:05:29 pm
We also need to know more precisely what the monthly collected fees have been since inception of Bitshares 2.0.  I asked in the dev channel and @Taconator has graciously offered to help within a week if no one else has already helped by then.

Per @tbone's request, please refer to this thread (https://bitsharestalk.org/index.php/topic,24027.0.html) for a discussion on the fees collected by the network through March 2017. I hope that this helps the discussion.

I will chime in on this topic in a separate post later.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on April 28, 2017, 01:04:52 pm
Interest/Profit-Sharing/Dividends was discussed in today's Bitshares Hangout, give it a listen when it's released.

Edit: https://steemit.com/beyondbitcoin/@glitterfart/bitshares-hangout-2017-04-28-beyond-bitcoin-radioshow-raw-recording-for-impatients

Would anyone be interested in collaborating on a BSIP for this idea through google docs (or a more FOSS alternative platform)?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on June 20, 2017, 02:32:00 am
I have written up a BSIP for this feature, I'd greatly appreciate input, thanks!  :)

https://steemit.com/bitshares/@cm-steem/bsip-019-draft-introducing-profit-sharing-dividends-to-bitshares
https://github.com/bitshares/bsips/pull/24
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: pc on June 20, 2017, 07:33:27 am
AFAIK the recent profit of our DAC stems from a giant refund paid by Xeroc's worker. We're far from a situation where the fees regularly exceed our costs.

Your BSIP lacks a solution to the Yield Harvesting problem.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Permie on June 20, 2017, 09:35:54 am
I have written up a BSIP for this feature, I'd greatly appreciate input, thanks!  :)

https://steemit.com/bitshares/@cm-steem/bsip-019-draft-introducing-profit-sharing-dividends-to-bitshares
https://github.com/bitshares/bsips/pull/24
Great effort :)  +5% +5% +5%
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: paliboy on June 20, 2017, 09:50:21 am
AFAIK the recent profit of our DAC stems from a giant refund paid by Xeroc's worker. We're far from a situation where the fees regularly exceed our costs.

Your BSIP lacks a solution to the Yield Harvesting problem.

 +5%

I suggest to split BSIP into two - for UIAs and MPAs.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: xeroc on June 20, 2017, 09:52:27 am
AFAIK the recent profit of our DAC stems from a giant refund paid by Xeroc's worker. We're far from a situation where the fees regularly exceed our costs.

Your BSIP lacks a solution to the Yield Harvesting problem.
Not so far actually. I burned 6.4M BTS and the revenue is 6.2M .. Also, those revenues distributed over multiple weeks would have resulted in a more continues revenue. Ultimately, the reserves *are* back to >1B BTS :D

Yield harvesting is a problem, and I still don't see why holding BTS should make you hold more BTS later on ..dividends are paid by "reduced" supply.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on June 20, 2017, 09:54:59 am
AFAIK the recent profit of our DAC stems from a giant refund paid by Xeroc's worker. We're far from a situation where the fees regularly exceed our costs.

Your BSIP lacks a solution to the Yield Harvesting problem.
Not so far actually. I burned 6.4M BTS and the revenue is 6.2M .. Also, those revenues distributed over multiple weeks would have resulted in a more continues revenue. Ultimately, the reserves *are* back to >1B BTS :D

Yield harvesting is a problem, and I still don't see why holding BTS should make you hold more BTS later on ..dividends are paid by "reduced" supply.

not if you cut 10 or 20% off of affiliate fees, make it LTM exclusive, and reroute them to dividends. that's how I remember the discussion at least
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on June 21, 2017, 02:36:25 pm
AFAIK the recent profit of our DAC stems from a giant refund paid by Xeroc's worker. We're far from a situation where the fees regularly exceed our costs.

Your BSIP lacks a solution to the Yield Harvesting problem.
The previous estimate of 1 million BTS in fees per month is approx $320k, given that value was $6k when this thread started I believe the proposal is even more viable. It's up to the committee to figure out fees pegged to the dollar/cny so that we have accurate witness pay (and increased profitability of the DEX).

The BSIP doesn't provide a solution to Yield Harvesting because it doesn't create the issue in the first place. Profits would be sharedropped onto asset holders on a scheduled basis; this proposal is not vulnerable to the 'Yield Harvesting' issue that 'Socialized yield' was.

---

I'm splitting the BSIP in two - one for UIA, another for MPA.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: pc on June 21, 2017, 02:57:36 pm

The BSIP doesn't provide a solution to Yield Harvesting because it doesn't create the issue in the first place. Profits would be sharedropped onto asset holders on a scheduled basis; this proposal is not vulnerable to the 'Yield Harvesting' issue that 'Socialized yield' was.

Please explain. AFAICS BSIP-0019 proposes to pay dividends on bitassets (among others).

What stops me from using my BTS for shorting bitassets into existence and keeping them in my wallet, with the goal of collecting dividends for them?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on June 21, 2017, 09:26:35 pm

The BSIP doesn't provide a solution to Yield Harvesting because it doesn't create the issue in the first place. Profits would be sharedropped onto asset holders on a scheduled basis; this proposal is not vulnerable to the 'Yield Harvesting' issue that 'Socialized yield' was.

Please explain. AFAICS BSIP-0019 proposes to pay dividends on bitassets (among others).

What stops me from using my BTS for shorting bitassets into existence and keeping them in my wallet, with the goal of collecting dividends for them?

There's nothing preventing you locking up your BTS as smartcoins for the long term, by doing so you are removing BTS from the liquid supply and become eligible for earning dividends.

To avoid abuse of this mechanism we could evaluate the average asset holdings since the last dividend payment or only allocate dividends for the time that these assets have been in an user's wallet for (if the user has held the coins 14 of 30 days in a 30day dividend schedule, they only receive the 14days worth of dividends).
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: fav on June 22, 2017, 04:55:04 am

The BSIP doesn't provide a solution to Yield Harvesting because it doesn't create the issue in the first place. Profits would be sharedropped onto asset holders on a scheduled basis; this proposal is not vulnerable to the 'Yield Harvesting' issue that 'Socialized yield' was.

Please explain. AFAICS BSIP-0019 proposes to pay dividends on bitassets (among others).

What stops me from using my BTS for shorting bitassets into existence and keeping them in my wallet, with the goal of collecting dividends for them?

There's nothing preventing you locking up your BTS as smartcoins for the long term, by doing so you are removing BTS from the liquid supply and become eligible for earning dividends.

To avoid abuse of this mechanism we could evaluate the average asset holdings since the last dividend payment or only allocate dividends for the time that these assets have been in an user's wallet for (if the user has held the coins 14 of 30 days in a 30day dividend schedule, they only receive the 14days worth of dividends).

that's how steem does/did it with steem backed dollar. every second holding counted
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: pc on June 22, 2017, 10:53:52 am

What stops me from using my BTS for shorting bitassets into existence and keeping them in my wallet, with the goal of collecting dividends for them?

There's nothing preventing you locking up your BTS as smartcoins for the long term, by doing so you are removing BTS from the liquid supply and become eligible for earning dividends.

So... you don't solve the problem, but define it away instead?

To avoid abuse of this mechanism we could evaluate the average asset holdings since the last dividend payment or only allocate dividends for the time that these assets have been in an user's wallet for (if the user has held the coins 14 of 30 days in a 30day dividend schedule, they only receive the 14days worth of dividends).

This is the kind of suggestions that belongs into the bsip.

What you describe there is the exact situation that we had in BTS-1.0: people shorted bitassets into existence, keeping them to themselves, in order to earn the +1 provided by other shorters.

The result is that the actual payouts per bitasset are diluted away. (And we're talking about very low payouts in the first place.)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on June 22, 2017, 11:16:24 am
I don't know what payouts are we talking about here if in another thread core bitshares dev complains that bitshares reserve can't afford hiring a team of devs to fix essential flaws.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on June 22, 2017, 11:13:50 pm
I don't know what payouts are we talking about here if in another thread core bitshares dev complains that bitshares reserve can't afford hiring a team of devs to fix essential flaws.
It's absurd to suggest that the BTS DEX cannot afford developers, the reserve pool has hundreds of millions of Dollars in BTS at its disposal. The higher BTS gets in marketcap, the higher the reserve pool becomes.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: yvv on June 23, 2017, 12:23:47 am
I don't know what payouts are we talking about here if in another thread core bitshares dev complains that bitshares reserve can't afford hiring a team of devs to fix essential flaws.
It's absurd to suggest that the BTS DEX cannot afford developers, the reserve pool has hundreds of millions of Dollars in BTS at its disposal. The higher BTS gets in marketcap, the higher the reserve pool becomes.

So why not start spending these funds for hiring a team of professional developers first?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on June 23, 2017, 01:05:08 am
I don't know what payouts are we talking about here if in another thread core bitshares dev complains that bitshares reserve can't afford hiring a team of devs to fix essential flaws.
It's absurd to suggest that the BTS DEX cannot afford developers, the reserve pool has hundreds of millions of Dollars in BTS at its disposal. The higher BTS gets in marketcap, the higher the reserve pool becomes.

So why not start spending these funds for hiring a team of professional developers first?

You don't hire someone without first coming up with tasks for them to perform. I have created a BSIP (working on splitting it in two), thus this feature request has taken a step towards potentially being developed.
Worker proposals can now be created from within the GUI, not just the CLI - we'll likely see more activity.
Point is, if someone's saying that we can't afford 'x' then they're wrong, people just need to take the initiative to work on proposals.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: Permie on June 23, 2017, 12:03:58 pm
I don't know what payouts are we talking about here if in another thread core bitshares dev complains that bitshares reserve can't afford hiring a team of devs to fix essential flaws.
It's absurd to suggest that the BTS DEX cannot afford developers, the reserve pool has hundreds of millions of Dollars in BTS at its disposal. The higher BTS gets in marketcap, the higher the reserve pool becomes.

So why not start spending these funds for hiring a team of professional developers first?

You don't hire someone without first coming up with tasks for them to perform. I have created a BSIP (working on splitting it in two), thus this feature request has taken a step towards potentially being developed.
Worker proposals can now be created from within the GUI, not just the CLI - we'll likely see more activity.
Point is, if someone's saying that we can't afford 'x' then they're wrong, people just need to take the initiative to work on proposals.
+5%

Thanks for your initiative Customminer :)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on June 23, 2017, 03:20:20 pm
Updated BSIP19 to focus on MPA tokens, looking for feedback. Thanks :)

https://steemit.com/bitshares/@cm-steem/bsip-019-updated-draft-introducing-profit-sharing-dividends-to-bitshares-mpa-only

https://github.com/grctest/bsips/blob/master/bsip-0019.md
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on July 02, 2017, 09:29:38 pm
I have written up a draft BSIP-020 regarding profit-sharing for UIA tokens; previously BSIP-019 covered both MPA & UIA however it was suggested to split the BSIP so as to separate the different required functionality (minimizing confusion).

I would massively appreciate input on the BSIP.

https://steemit.com/bitshares/@cm-steem/bsip-020-draft-introducing-profit-sharing-dividends-to-bitshares-uia-only-input-would-be-massively-appreciated

Cheers,
CM.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on July 06, 2017, 12:39:33 am
Thrown together an additional BSIP 21 regarding the 'coin-age' statistic that both BSIPs 19 and 20 referenced: https://steemit.com/bitshares/@cm-steem/bsip-0021-draft-introducing-the-coin-age-statistic-to-bitshares-assets-input-would-be-massively-appreciated

I'd greatly appreciate input on the contents of these 3 BSIPs, I'll refine the BSIPs with your input.

Best regards,
CM :)
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on July 06, 2017, 07:55:53 pm
If we make BTS holders eligible for profit-sharing/dividends, what are your thoughts on only distributing dividends to users who have recently participated in witness/committee voting? So as to incentivize voting?
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: gimme-free on July 07, 2017, 01:16:04 am
^^^^THIS^^^^^ This is a great idea! This along with making the voting interface much more user-friendly and show more info about what shareholders are voting for, I think can help in making this experiment work. I would support this fully.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: chryspano on July 07, 2017, 01:33:44 am
...So as to incentivize voting?

This will only incentivize uneducated / "random" voting, people will start voting for the first random guy thy find in order to get the "free money"
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: R on July 07, 2017, 03:33:13 pm
...So as to incentivize voting?

This will only incentivize uneducated / "random" voting, people will start voting for the first random guy thy find in order to get the "free money"

Potentially yeah, users would likely just blindly vote in order to earn their dividends which could lead to the wrong kind of votes being cast.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: gimme-free on July 08, 2017, 05:59:13 am
then why not instead of voting, we put up a rating system just like ebay or amazon. it might be based on reputation or based on ratings on the value of the proposal.

It's like voting, but with a rating system, people are incentivised why they are voting or rating the proposal. Raters/voters are given tokens according to the value they bring into the discussion.

Votes are cast with the total rating value at the end of the rating/voting period.

Just like steemit, we can create a new asset just for the purpose of incentivising the raters. That way, there will be intelligent discussion instead of just random voting.
Title: Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
Post by: cptnSolo on July 25, 2017, 06:05:32 am
then why not instead of voting, we put up a rating system just like ebay or amazon. it might be based on reputation or based on ratings on the value of the proposal.

It's like voting, but with a rating system, people are incentivised why they are voting or rating the proposal. Raters/voters are given tokens according to the value they bring into the discussion.

Votes are cast with the total rating value at the end of the rating/voting period.

Just like steemit, we can create a new asset just for the purpose of incentivising the raters. That way, there will be intelligent discussion instead of just random voting.

This should work. Only limiting the ability to vote (an asset for voting) will bring a rational behaviour to the voting process when combined with possibility of revenue from success of the initiative voted. Steemit is good example.