Active Market Cap vs Total Market Cap (and the meaning of reserve pool)

[xeroc]

BTW, what's the maximum rate that BTS can be withdrawn from the reserve pool? Is it 5 bts/s? If I remember right, this is hard coded and can't be changed by committee members. It prevents excessive inflation of current supply of BTS (and makes sure that there is enough BTS left for development in the future).

it is defined in the 2.0.0 object and is
      "worker_budget_per_day": "50000000000",
which calculates to 500000 BTS per day or 5.87 BTS per second
It is a PARAMETER that can be changed by the committee with shareholder consensus only!

[Samupaha]

Now tackle the margin call rules.

Unfortunately I'm not a trader so there is still a lot of holes in my understanding of how the trading works in BTS2. So this might have to wait for a while.

Just as a reminder .. there will be workers available for voting that do only burn there pay .. and there will be workers that put their pay back into the reserve fund.. two indepwndently votable workers

It's good to have that option, although I wouldn't vote for it at least for now. Maybe in the future, if Bitshares seems to became really profitable we don't need to put so much BTS in the reserve pool and burning will become a good choice.

BTW, what's the maximum rate that BTS can be withdrawn from the reserve pool? Is it 5 bts/s? If I remember right, this is hard coded and can't be changed by committee members. It prevents excessive inflation of current supply of BTS (and makes sure that there is enough BTS left for development in the future).

[xeroc]

Just as a reminder .. there will be workers available for voting that do only burn there pay .. and there will be workers that put their pay back into the reserve fund.. two indepwndently votable workers

[tonyk]

That said - What is the point of your post?

A lot of newbies have come to the forum who don't have much understanding how things work. I thought it might be good to explain the basics.

Great job, if that was the purpose! + 1

Now tackle the margin call rules.

[pioneer]

That said - What is the point of your post?

A lot of newbies have come to the forum who don't have much understanding how things work. I thought it might be good to explain the basics.

And it was. I'm not a newbie, but I'm not very active either so I didn't know this.

[Samupaha]

That said - What is the point of your post?

A lot of newbies have come to the forum who don't have much understanding how things work. I thought it might be good to explain the basics.

[tonyk]

While this is one of the ever decreasing number of posts on this forum that ARE ACTUALLY TRUE and not misleading*. And do have pure subjective and more times than not wrong personal opinions and/or judgments....



That said - What is the point of your post?

Claiming the bragging rights on the term "Active Market Cap"?



*Much unlike the posts on the same subject by BM - "We are doing great we burned 500k since launch", and clout - "It is so bad we are burning funds, instead of using them for X"

[Samupaha]

I suggest that we start to use two different terms for market cap:

Active Market Cap = (current supply of BTS) * (price of BTS)
Total Market Cap = ((current supply of BTS) + (reserve pool)) * (price of BTS)

When you talk about "market cap of Bitshares" it is probably better to use the active market cap. Although this has a little downside: when the DAC is making revenue, the active market cap is going down if the price is stable because current supply is diminishing. This is why sometimes it might be better to clarify what the total market cap means.

As far as I have understood, there is no actual burning happening right now. No BTS is burned so that is made completely unusable. Instead the revenue from fees is going to the reserve pool, where it's waiting to be used for payments for workers and witnesses.

You can think that Bitcoin has a reserve pool too. It is all the bitcoins that are not mined yet (6.3 million BTC right now). Disadvantage is that BTC can only be withdrawn from the reserve pool and not put back in. In this way Bitshares is way more better because it can make revenue and put it in the reserve pool to wait until it is used for something that the DAC needs.

And of course BTC from reserve pool is going only to miners and not to developers, which leaves the development to be funded only by charity. Bitshares is also superior in this way too, because it's development is secured for years. If the price goes up, it can fund even more development, which will attract more users, which will make more revenue and price will go up more, which can fund more development. It is a system that is made to win. It seems to me that many people haven't yet understood how significant this is.

So stop talking how "BTS is burned" (because it isn't) and start bragging how much money we are collecting for the development.

Also feel free to suggest other terms for active and total market cap if you have something better in mind.