Bytemaster cannot serve two masters (pre. and post Feb 28 snapshot AGS). He cannot betray post snapshot donors by spending all of his time on BTSX. But BTSX obviously needs his full attention.... what to do?
We now find ourselves with a dilemma, seeded in the infamous “original mistake” which accidentally solidified the core distribution of his most brilliant idea 4 months too early, and only ¼ way through the main funding drive. Fortunately, we now have an crisis/opportunity to 'course correct' this inauspicious division once and for all. Let us remain vigilant and cool headed as we chart the most sane course, perhaps even putting to the test some of the trust we have gained from one another.
There seems to be two “hot button” issues at this time. The first has apparently found general consensus that PTS and AGS should be combined and made liquid, albeit how and when are still up for debate. The second, and by far the most volatile, seems to revolve around the idea that dilution of BTSX is 'absolutely' needed at this time to fund further development. I am unaware that anyone close to the dev. team has said this outright, or has given explanation as to why all of the development funds have already been spent, but my suspicion is that this rumor of 'absolute need' evolved from the original dilemma of bytemaster's desire to be fair with the AGS (only using Jan 1- Feb 28 for BTSX). If this assumption is true, then I postulate that pressure for dilution might be lessened temporarily by finding a way for bytemaster to justify spending the post Feb. 28th AGS funds on BTSX without dishonoring the social contract.
One option he proposed is to absorb PTS and AGS through a one time BTSX dilution of 20% (based on the theory of their current market caps of approx. $5mil., $5mil., and $50 mil.). BTSX could be re-branded simply “Bitshares”, and then officially recommended as the 'grand proto-DAC' for future social-contractual obligations. There is a fatal flaw in this idea as it stands, namely that it would betray the relative value proposition of AGS and PTS and heavily skew all future DAC allocations towards pre Feb. 28th snapshot holders. I will explain how this works in the next paragraph. If you already figured this out, skip to the following paragraph.
Assuming 2 million shares existed for each AGS and PTS, a minimum consensus allocation (10% each) 'guarantees' 1/ 20millionth allocation per share. If BTSX is diluted 20% to absorb AGS and PTS, they now have 1/6th the value proposition they once had, assuming BTSX is not diluted any further and manages to remain at the same price per share. So now when BTSX is snapshotted, the PTS or AGS holder will now receive 1/ 120millionth of the new DAC (per absorbed unit). Furthermore, this skews the relative allocation towards the original pre. Feb 28th snapshot holders. While there has been 10's of millions in trading volume since BTSX release, over 1/3 of the genesis shares are still unclaimed, so pre. Feb 28th AGS and PTS holders would be (unfairly) entitled to at least 1/3rd of the total proposed proto-dac.
It would be fine to re brand BTSX to just “bitshares”, but this blockchain should not totally replace AGS and PTS in the proposed manner. There is no reason, however, that post Feb. 28th AGS and PTS holders cannot still be brought into the fold with a one time 20% dilution. There might not even be huge opposition form the pre-Feb 28thers, because naturally the entire AGS list would be allocated shares in the dilution, and all pre- 28th would be allocated additional shares for the trouble of welcoming their brethren from across the divide. Most might even be sympathetic to the cause..... I most certainly am. If this solves the short to medium term of fund shortage, then we might be able to explore the dilution debate in an atmosphere of less urgency, which would surely improve our chances of making the right decision. And who knows, in this crazy market what a few months might bring (come on, marketing!)
Topic: Proposal to Resolve a Million Issues at Once (Read 109766 times)
