1. bitSHARES (or dShares if BM is stubborn and we have to make a separate chain) are NON - send-able digital shares in a decentralized exchange co-op.
a. unlike other money like digital tokens they cannot be send to other account. Those digital shares can only be bought/sold, and they can only be bought in one place - the co-ops own decentralized exchange.
b. they are true shares in a business entity - regularly (monthly/quarterly) all proceeds of the co-op [which are in bitUSD only.More on this later] are split between all accounts having more then a system-wise min. number of shares.
c. as a consequence the only things potentially available to trade on centralized exchanges are bitAssets.
e. to become a own of the co-op you have to by bitUSD for USD and with to purchase shares in the DEX.
2. -[ short summery of some of the differences (and nuances) compared with current system.]
a. bitUSD are created by the system and loaned anyone upon providing an asset as collateral. The amount of collateral needed should be 1.75 - 2 times bigger than the loan. In the most common case the collateral will be the shares in the co-op itself. The value of this collateral is determined by the last trading price of such shares in the in-house DEX itself.
b.no feed needed - all the prices are already there on the DEX
c. perfect peg all the time - what is changing is the value (price) of the bitShares' shares themselves, the bitUSD stays at 1 USD.
d. calling the bitUSD loans/force sell of the collateral.
Whenever a trade in the DEX occurs, with such a price that the collateral will have a value smaller than 1.75 times the loan the collateral is put up for sale
- the starting price is the price that triggered this forced liquidation. If the collateral is not sold at that price, each 15min (15*60/3 blocks) the price is decreased by 1% until it is sold.
3. The 'core' token of the system is bitUSD - this means among other things -all fees* are paid in it;
-workers(and witnesses) are paid in it also; the system pays the worker and issues 2x new bitShares; those new bitShares are put for sale on the market for the stakeholders to buy; the same rules as the collateral liquidation rules are followed - starting with the last observed real trade price and decreasing 1% every 15min.
- the regular dividends are paid from the fees collected (in bitUSD) in bitUSD.
-This also means that the users of the system (DEX here mainly for now), are not forced to be BTS holders at all. They just buy bitUSD for USD (with say 0.3% cut for the fiat bridge) and trade on the DEX exchange for whatever they like. [but it is a carrot instead of a stick approach - see under fees* below]
4. BitAsset should use bitUSD (instead of co-op's shares) as primary collateral.[Subject to debate - but seems pretty logical]
*fees in the new bitShares are fully in agreement with the recent 'no fees based on ownership of stake in the co-op' approach. For those that feel forced into buying into BTS by this - they just pay the non-member fees in bitUSD and trade freely on the DEX
Benefits:
- Clear distinction of the SHARES from money and tokes and more close resemblance to shares (and probably partnership based ownership of an entity)
- This new way should lead to significant slow down of the velocity of the asset [note to myself: should elaborate more on that]
- Virtually perfect peg - all that is moving is the price of the co-ops shares, really.
- Instant no feed, but pure DEX(market) based pricing of the bitAssets.
?
Topic: bitSHARES - As True Shares and Not a Currency! (Read 66066 times)
