Community Check:

Where is this update FMV?  Its been over a week. 

Quote from: Pheonike on July 18, 2015, 11:41:53 pm

Could set up a swap market like bitfinex that loans to traders and and settles interest payments daily.

I like this idea.  What do we need to make it happen?

Yeah I said bond market because that is what we have been using.  It's actually a swap market rather than a bond market you are thinking of.  It should function like bitfinex, but bytemaster hasn't made this evidently clear.  Unless someone else could confiem

Wow I actually believed Stan when he said there would be announcements every week until the end of the summer.  Remember until they go to sleep.  It turns out nothing this week.  And last week itself was a non-annoucenment since we already knew about it long ago.  So far the announcements have been underwhelming.  Nothing really says game changing.  And we don't even know what one announcement will do, and this one #4 will occupy yet another annoucenemnt spot at the end of the month.  What happened to all those secret memos and partnerships that Stan couldn't tell us about in his previous weekly updates?


All of this only makes me think how a bit hyperboled up bitshares 2.0 has been.  Can they deliver on time and effectively?  Should we now start questioning the intent the business leaders when they say something?  I think this is constructive criticism if not a good example that I wanted to bring this up with the community because I know I am not the only one who feels slighted if not entirely frustrated. 

bts: frozenfan

Quote from: jcalfee1 on July 15, 2015, 02:46:51 am

There is the stock split too.   It is actually a real challenge/expense to get the detailed dividend and split data required without having rounding errors (which compound over time) or violating someone's terms of service.   It is as if we have the new technology and that it is better if we support companies that upgrade.

Yes, in principle bitAssets should allow for ALL possible corporate actions such as dividends, bonus issues, buybacks, takeovers and share splitting.
The impact of any of these should be a fair adjustment to asset value and obligation of shorts.

There are two ways I can think of to do this in the case of stocks:

i) Replicate the corporate actions for owners of bitAssets. That would involve making distributions from the collateral pool for dividends, splitting the number of bitAssets for stock splits etc. I think to work out all these adjustments, while possible, would be very difficult to implement.

ii) Define a bitAsset as representing a varying number of shares. Then the fair value of the bitAsset can be adjusted over time to reflect all of these events. For example, a dividend would result in an increase in the underlying number of shares represented, essentially assuming reinvestment. A stock split would simply represent a change to the number of underlying shares.

I prefer (ii), at least initially, because I think it is a lot easier to deal with. There are no additional mechanics required for implementation of bitAssets, apart from the flexibility to define fair value as a function of stock price that depends on an adjusted number of shares over time.

Your # 2 is the right idea.  It would be the equivalent of a NAV calculation that a Mutal Fund / Actively manage fund would do at the end of the day.  A feed producers responsbility will be to make these calculations everyday, report and submit.  In the end the Spot Prices will be different between a MPA and a Stock, but the Fair Value will be nearly the same.

Where would the revenue stream for dividends even come from?  An attempt to match dividends paid out by the real asset would open you up to potential losses.  I would focus instead on the benefits of the bitasset, such as no counterparty risk, almost instant transactions, and the ability to trade during off hours.  As an investor I would feel less confident if I thought that unsustainable promises had been made.
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It should be reflected in price.  Meaning even though not paid out, the price has gone up on the market to account for this premium

bts: frozenfan