Author Topic: The Key is Burning BTS  (Read 4378 times)

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Offline clayop

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That's the whole point and motivations of the changes to be announced in early June.
For the reasons of keeping a self-funded  blockchain (incredibly big advantage over other 'coins'), BitShares will keep it's dilutional parts and pay "workers" and devs ..
From what I heard and read, Bytemaster has some solid plans to increase the USE of the platform which will increase the amount of burned BTS ..
There are currently already a few features that require to burn fees:
 - UIA creation
 - MPA creation
 - delegate registration
 - etc..

And it seems some more will come such that we do not approach 1% dilution but (this is the plan) surpass dilution rate and have BTS be profitable in it self ..

Current system is more favorable to delegates(workers) than shareholders IMO. For instance, 100% delegates collect whole fees from asset creations and transactions. If June update focuses on burning fees, it would be the best.
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Offline xeroc

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That's the whole point and motivations of the changes to be announced in early June.
For the reasons of keeping a self-funded  blockchain (incredibly big advantage over other 'coins'), BitShares will keep it's dilutional parts and pay "workers" and devs ..
From what I heard and read, Bytemaster has some solid plans to increase the USE of the platform which will increase the amount of burned BTS ..
There are currently already a few features that require to burn fees:
 - UIA creation
 - MPA creation
 - delegate registration
 - etc..

And it seems some more will come such that we do not approach 1% dilution but (this is the plan) surpass dilution rate and have BTS be profitable in it self ..

Offline clayop

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Currently, the supply of BTS is increasing about 148k every day. In terms of ROA, it equals to 2.2% annually. This means investors are losing 2.2% of value while holding BTS for a year. But what happens if 68k BTS are burned every day?

If so, ROA would be about 1%. This number is greater than financial industry's ROA (e.g. JP Morgan's annual ranges from 0.74~0.9%). This not only attract investor but also increase its value (i.e. Holding 1 cent value of BTS will become 1.01 cent after a year). Given the increased price and if the burning amount keep consistent (68k a day), the amount of burn in terms of USD will also increase, and this further promote price again.

Since my English is not that good, I cannot expound my idea (also this idea is very crude). But in my opinion, burning BTS is the key of the growth.

Any comments are appreciated.
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