Author Topic: Appearance of Deflation vs No Dilution  (Read 4263 times)

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Offline Riverhead

Appearance of Deflation vs No Dilution
« on: February 05, 2016, 06:36:10 pm »

If I recall correctly the exclusion of the reserve pool from total supply was because it couldn't be spent and it provided the feeling of deflation. However the cost of that is the stigma of dilution any time that pool is tapped.

What are the communities thoughts on basically pulling a "Ripple" and adding the reserve pool to the communicated total supply and doing away with the term dilution altogether? There'd be a one time hit as the market adjusted to the new supply but the long term benefits may outweigh that cost.

Thoughts?

Offline bytemaster

Re: Appearance of Deflation vs No Dilution
« Reply #1 on: February 05, 2016, 06:50:12 pm »
It would probably boost us on coin market cap! 
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Offline xeroc

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Re: Appearance of Deflation vs No Dilution
« Reply #2 on: February 05, 2016, 06:51:13 pm »
Yes .. let's pull a Ripple! :D
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Offline Akado

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Re: Appearance of Deflation vs No Dilution
« Reply #3 on: February 05, 2016, 07:11:37 pm »
people would most likely think we diluted even if we didn't.
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Offline hcf27

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Re: Appearance of Deflation vs No Dilution
« Reply #4 on: February 05, 2016, 07:20:53 pm »
I agree with this proposal, its the best strategy long term

Offline Frodo

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Re: Appearance of Deflation vs No Dilution
« Reply #5 on: February 05, 2016, 07:25:49 pm »
people would most likely think we diluted even if we didn't.

Exactly.

Sometimes I feel like the community is looking for problems where really non exist. Let's focus on real problems like liquidity and I believe we'll be fine.

Offline Pheonike

Re: Appearance of Deflation vs No Dilution
« Reply #6 on: February 05, 2016, 07:30:30 pm »
people would most likely think we diluted even if we didn't.

Exactly.

Sometimes I feel like the community is looking for problems where really non exist. Let's focus on real problems like liquidity and I believe we'll be fine.

 +5% 

Lets work on the problems we already have.


Offline Ben Mason

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Re: Appearance of Deflation vs No Dilution
« Reply #7 on: February 05, 2016, 07:46:00 pm »
people would most likely think we diluted even if we didn't.

Exactly.

Sometimes I feel like the community is looking for problems where really non exist. Let's focus on real problems like liquidity and I believe we'll be fine.
Totally! Great idea riverhead

Offline Ander

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Re: Appearance of Deflation vs No Dilution
« Reply #8 on: February 05, 2016, 08:07:34 pm »

If I recall correctly the exclusion of the reserve pool from total supply was because it couldn't be spent and it provided the feeling of deflation. However the cost of that is the stigma of dilution any time that pool is tapped.

What are the communities thoughts on basically pulling a "Ripple" and adding the reserve pool to the communicated total supply and doing away with the term dilution altogether? There'd be a one time hit as the market adjusted to the new supply but the long term benefits may outweigh that cost.

Thoughts?

Hell no.

What would happen is that instead of having an $8M market cap at a 2.5B supply, we would go down to a $*M market cap for the 3.7B supply.


The only thing pulling a ripple did was make everyone hate them, remember? 



Furthermore, listing 3.7B supply of BTS would not be accurate, because this amount does not exist.  It would be like listing BTC's supply at 21M right now, and saying its market cap is 50% higher.
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Offline fuzzy

Re: Appearance of Deflation vs No Dilution
« Reply #9 on: February 05, 2016, 08:51:47 pm »

If I recall correctly the exclusion of the reserve pool from total supply was because it couldn't be spent and it provided the feeling of deflation. However the cost of that is the stigma of dilution any time that pool is tapped.

What are the communities thoughts on basically pulling a "Ripple" and adding the reserve pool to the communicated total supply and doing away with the term dilution altogether? There'd be a one time hit as the market adjusted to the new supply but the long term benefits may outweigh that cost.

Thoughts?

Hell no.

What would happen is that instead of having an $8M market cap at a 2.5B supply, we would go down to a $*M market cap for the 3.7B supply.


The only thing pulling a ripple did was make everyone hate them, remember? 



Furthermore, listing 3.7B supply of BTS would not be accurate, because this amount does not exist.  It would be like listing BTC's supply at 21M right now, and saying its market cap is 50% higher.

well it did one other thing oretty effectively...destroy a amassive headwind pushing us up past them.  had they not done that, i still suspect we would have stayed higher than them....but then again i could be wrong.
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Offline puppies

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Re: Appearance of Deflation vs No Dilution
« Reply #10 on: February 05, 2016, 10:23:14 pm »
I also do not think this is a good idea.  I would like each of my bts to be worth more than 500 sats.
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Offline yvv

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Re: Appearance of Deflation vs No Dilution
« Reply #11 on: February 05, 2016, 11:11:28 pm »
If you call a piece of crap a chocolate, it will not become a chocolate.

Offline dannotestein

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Re: Appearance of Deflation vs No Dilution
« Reply #12 on: February 06, 2016, 12:06:20 am »
I've thought about the same thing, Riverhead, but I think the essential issue is the reserve BTS is sort of "owned" by all the BTS holders (as they can vote to have it used to their benefit). So this is similar to when a company has purchased shares of it's own stock. In such a case, I think the valuation of the stock held by the company is implicitly priced into the value of the "regular" shares held by the shareholders.

In the case of ripple, I think the shares in question were held by founders, not by all the coin holders. In that case I think it's fair to count it as part of the supply (although maintaining a supply of your coin that's not generally known to the general public seems quite underhanded, if that's what happened). But I never paid close attention to what ripple was doing, so I'm not accusing anyone there of anything.
« Last Edit: February 06, 2016, 12:07:55 am by dannotestein »
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Offline yvv

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Re: Appearance of Deflation vs No Dilution
« Reply #13 on: February 06, 2016, 12:14:40 am »
In the case of ripple, founders and ripple labs do sell their XRP at the market, hence these XRP are actually a part of available supply. This is a big problem of ripple.

Offline Riverhead

Re: Appearance of Deflation vs No Dilution
« Reply #14 on: February 06, 2016, 02:23:29 am »
If you call a piece of crap a chocolate, it will not become a chocolate.
I can't tell if this is for or against.

Diluting to fund workers is a current issue.

Anyway it's just semantics. We don't consider pool funds as real but we use them to pay workers...
« Last Edit: February 06, 2016, 02:25:54 am by Riverhead »