Author Topic: BitBTS  (Read 1277 times)

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Offline Samupaha

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BitBTS
« on: January 08, 2016, 06:16:10 pm »
I was thinking about potential problems that exchanges that vote might bring us and got this idea...

The solution is actually quite simple: let's just create bitBTS! Because it's pegged to BTS, it needs only 100 % collateral: 1 bitBTS is backed with 1 BTS.

Then we just recommend that exchanges start to sell bitBTS instead of BTS. Both have excatly the same value, but only real BTS can be used to vote. This is perfect solution for all those people who are just interested in speculation and trading, but not in actual DAC business. Also exchanges wouldn't be anymore in a situation that might create conflicts.

If bitBTS owner wants to become real shareholder of Bitshares DAC and start to vote, he can just come to our exchange and sell or settle bitBTS to BTS.

Offline btswolf

Re: BitBTS
« Reply #1 on: January 08, 2016, 06:19:26 pm »
Whats the incentive for exchanges to follow that suggestion?

Offline Ander

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Re: BitBTS
« Reply #2 on: January 08, 2016, 07:17:32 pm »
This is the dumbest idea ever and would be a great way to make people think BTS is a joke.
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Offline donkeypong

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Re: BitBTS
« Reply #3 on: January 08, 2016, 08:15:22 pm »
This would create 20 more problems just to (maybe) solve one.

Offline yvv

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Re: BitBTS
« Reply #4 on: January 08, 2016, 08:33:02 pm »
Exchanges may issue whatever token they want, even bitbitBTS. And they are free to vote on your behalf if you allow them to do this by keeping BTS in their wallet.

Offline Samupaha

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Re: BitBTS
« Reply #5 on: January 09, 2016, 07:49:15 am »
Actually there is one thing that I'm not sure about. Who votes with the collateral for MPA? Is it the person who created the MPA or who owns the MPA? I assumed it's the one who created the MPA – it's his collateral. But I realized I'm not 100 % sure about this.

If bitBTS is used, it would go like this:

Somebody creates bitBTS, backing it with 100 % BTS collateral. Nothing has changed, he has same amount of voting power. The he sells the bitBTS for real BTS. Now he has voting power for the real BTS he just got plus the collateral for the bitBTS that he created. With this trick he can double his voting power without any change in the value of his assets.

DAC could incentivize the creation if bitBTS by setting the creation transaction free. Settlement would have a cost so there is no possibility for spam by changing BTS to bitBTS continuously. It would also discourage people to change bitBTS to BTS just for fun.

Of course there is not much point of doing this for Bitshares now. BTS is so widely distributed that it would require an awful lot of work to get it changed to bitBTS for all of those people who are not interested in actively taking part in DAC decisions.

But if somebody was going to create a new DAC, this might be a great thing to do at the beginning. Original investors would hold the core asset and they would sell only derivate of core asset to everybody who is not interested in voting (most of speculators and traders). This way the original investors would keep the voting power for themselves so the voter apathy problem would be very small.

Speculators and traders would have an incentive, although possibly quite small, to hold mostly bitBTS. If they are not interested in voting, it's better to let those people keep the voting power who are truely interested in it.

Offline xeroc

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Re: BitBTS
« Reply #6 on: January 09, 2016, 09:09:07 am »
Collateral in an account votes the same way as regular BTS
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