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. 

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.

Quote from: Geneko on April 05, 2017, 10:06:00 pm

I thought about this many times. Let me share this recent one.

Block rewards and workers are payed from reserve fund. Obvious solution would be that reserve fund gets ability to pay in MPA assets.
I am not familiar how hard proposed change would be, but for the purpose of this brainstorm lets pretend it is feasible.

It is already discussed many time so I wont repeat, but reserve fund should not be maintainer of collateral positions because it is not able to cope with market forces. But it could borrow MPAs from shareholders and traders which can. It could borrow on market established interest rate (like 5% meme) let the market decide, up to some figure, for instance two year worth of expenses(adjustable by comity).
Interests would be payed from reserve fund in BTS at feed price on hourly bases like vesting balances. The long position could be settled at any time from the reserve fund in BTS at current feed price. Everyone who want to settle MPAs could get current feed price worth of BTS from reserve fund, within 24 hour to prior notice as already defined (settle option). These acquired MPAs could burn the dept, so dept account could also have negative balance. The fact that this market opportunity has limited supply should provide additional incentive for borrowers. The liquidity would be increased slowly at a peace of about 2000 bitUSD/day.

Two years worth of expenses in bitUSD, at current price, is about 1.32 mil. It is impossible to make any predictions, but such a change could easily double the BTS price in short time.  There is inbuilt fluctuating factor in every price, including witness pay and workers price. With bitUSD price denomination for witness and workers pay, I am confident it could at least cancel additional interest expenses.
Also improve liquidity, get market adjust BTS supply, get more incentive for witness and workers, provide more transparent pricing and steady stream of fresh MPAs liquidity.

My feeling is this idea isn't simple enough to understand. A more simple and elegant implementation would be preferred.

I know it sounds little complicated but for the sake of an argument let me support it with example, how it would look like in UI, I suppose everyone is familiar with it.

Like we have "borrow" button, we could also have "lend" button. When it is pressed, new window pop up with option to fill amount and interest rate.
It could be the same as borrow option, a slider and manual fill , with same mechanics and comments like "you don't have sufficient funds", etc..
Block chain will fill order, the one with lowest interest rate (upper interest rate limit set buy commity), until upper fund limit is reached (also set by commity). After upper fund limit is reached, blockchain will fill lowest interest rate orders and borrow back upper ones.   

So for example, lets assume, upper interest rate limit is set to 20% and upper fund limit is set to 1mil bitUSD.
If I want to lend 100 bitUSD with interest rate of 5%, my order would be filled, if upper fund limit isn't reached.
After upper fund limit is reached, if there's any 40 bitUSD offered with 4.8% interest rate and my long has highest interest rate, my long would be borrowed back to me for 40 bitUSD in bitUSD, and 60 bitUSD maintained.
All the time my long position exists I would be payed bitUSD interest, from reserve fund denominated in BTS(at feed price) which will show in vesting balances. At any time I could decide to lower my interest rate, and if I decide to exit my long (partially or fully), I would be payed bitUSD worth of BTS at feed price.

Edit:
The critical part not mentioned could be as follows. When order is filled you are practically "locked" until someones outbids you or you decide to settle long position. Possible margin call would automatically trigger long settle option.

go ahead, get a quotation, hire a dev and setup a worker proposal. less talk more action

I agree. Maybe @Chris4210 and bitshares-munich can help with this. They already have experienced team and knowledge dealing with work proposals.

Why not setup the current STEALTH first before introducing a new extended STEALTH ..

That's what confuses me

That is really interesting question.

Is this Leonardo maybe? Because if it is that could be huge, that would provide bot cross trading between mayor centralized exchanges
and DEX, and as a bonus, providing DEX exposure to big game players.

That could certainly be financed by new worker. How much fund are needed in your estimation? 

Convinced?

I am. It is better this way, only if we could adjust all workers and witness pay to this method. 

Quote from: Geneko on February 22, 2017, 06:27:48 pm

[BTW stan is buying BTS!

That simple fact made my day ! Thanks man, Geneko !

That's a great indicator ! He was well over 10M BTS but still want more ... Let's prepare our spacesuits ...

Not sure a space suite will be sufficient ..remember .. stan is a former Nasa pioneer who built mars rovers and is not heading for outer space but intergalactic travel!

Stan is good old boy and I like him. To bad he spends less time here with us, then he was in the past. I really enjoy his comments.

Bitshares is dead.

Not quite yet...

One more BTW..It is actually Peerplays crowdfund accepting only BTC, that squeeze rope on the neck to BTS now.