Author Topic: Pay USD workers with fees collected in USD  (Read 3135 times)

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Offline bench

Any update or other opinions on this?

Before taking BTS from the reserve pool for worker payment, we should use the market fees to direct pay them. 
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Offline bench

It is a good idea to pay the worker direct with bitUSD and remove the selling pressure on the market for BTS.
« Last Edit: July 03, 2018, 07:12:13 pm by bench »
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Offline armin

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Really good idea! It acts as a hedge against the price of BTS going down

Offline sschiessl

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The question I would like to ask is this: Should the worker account rather pay a premium to improve volume (not liquidity - it's actually taking liquidity)
or should the worker trade against committee-owned funds at feed price?

Exactly the right question. Answering that retroactively for the existing workers is difficult, or even impossible without a new proposal since it states that the escrow buys the bitUSD off the market, and the market is like it is.
Or speaking otherwise: Why should the BBF obtain bitUSD cheaper then everyone else? This option could be included in future workers escrowed by the BBF.

But the committee could come up with alternative solution, if it is viable and feasible. For example, sell the fee-accumulated bitUSD like planned, and refund the reserve pool with the extra BTS that are obtained due to the difference of market price and feed price.
« Last Edit: March 22, 2018, 08:03:05 am by sschiessl »

Offline xeroc

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That is great!

Also, given the current 15% premium on bitUSD and the need for the workers to buy bitUSD to cover workers, we maybe find a win-win solution. Here is what currently happens.

the workers.bitshares.foundation account obtains BTS and uses them to buy bitUSD off the markets paying a premium of up to 15% some times.
This "leaks" profits to those that short bitUSD and sell at <15% premium and improves the liquidity. This profit is paid by the reserve funds!
In a sense, we could say that the reserve subsidizes liquidity. Personally, I don't have a problem with this, but from an economical point of few, it
would be much better for the BitShares ecosystem if there was a cheaper source for bitUSD for the workers.

The question I would like to ask is this: Should the worker account rather pay a premium to improve volume (not liquidity - it's actually taking liquidity)
or should the worker trade against committee-owned funds at feed price?

Offline abit

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Since we're charging fees in USD, we can pay USD workers with the fees collected, to reduce unnecessary buy/sell operations.
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