16
General Discussion / Re: Lets bring " earn x% interest on 'anything' " back to Bitshares!
« 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?:Let's make that statement a reality.
- "BitShares - Your share in the Decentralized Exchange"
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.