IntroductionIn the thread post by bitcrab[2], it was proposed to discuss how to use committee fund to buyback. In this thread, I provide some discussion on buybacks and other hot issues like voting, feed-price, workers etc.
DECISION BY VOTINGIn the BTS system, voting rights are property attributes integrated into every BTS token. According to the following description of [1], as a DPOS system，”The Bitshares blockchain leverages the power of stakeholder approval voting, to resolve consensus issues in a manner which is democratic and fair”. “With this delegated Proof-of-Stake, we can truly say that the administrative authority is fully decentralized and in the hands of the users (BTS token holders), and not the delegates nor the witnesses”. However, how would we know if users (BTS holders) made the “right” decision by voting? For human-being, most people allow impressions, emotions, own benefit, or other pressure forces to influence them. The citizens of the United Kingdom (UK) voted to leave the European Union, Who knows if BREXIT(British Exit) was the right decision. The American people voted for Trump and rejected Hillary, but who knows whether it is a “right” decision to choose trump. People may have different opinions about the same thing, and there is absolutely no golden rule which helps we achieve the consensus all the time, the only way to find out is to make a voting and see how it turns out. Voting is a method for a group to make a collective decision or express an opinion, furthermore, the most important of voting is to reflect the will of the majority and make decisions according to the majority, not to make the “right” decisions.
Observation1: The administrative authority is fully decentralized and in the hands of the users (BTS token holders) by voting method, the voting is to reflect the will of the majority and make decisions according to the majority. CONSTITUTION OF DPOSThe consensus protocol of bitshares by integrating voting rights into every BTS token is designed to protect all participants in a free and fair, transparent environment. Since bitshares network launch in 2014, undoubtedly, in the “law” system of bitshares, the voting “law” is the constitution and fundamental “law”. Unlike other application level “law” which tends to change gradually, continually, and often imperceptibly, in response to changing needs, the constitution shall be harder to change. Furthermore, in bitshares system, even those “Non-constitutional” changes are contingent upon stakeholder approval so as to ensure that no individual has unilateral control over the direction of the network. It was noticed in some BSIP discussions, there have been attempts by developers (or member of workers) to modify the BTS voting mechanism e.g. removing debt voting, and we would like to kindly remind to stop this behavior because it may cause serious chaos like a storm. Voting power is the constitution. Voting power is also property attribute attached to every bitshares token, it is illegal to infringe the property of bitshares holder. In fact, the idea of removing debt voting is stupid and rude. In stock market, Signing the pledge doesn't affect any voting rights the stock gives, and whether stockholders buy stocks from cash or debts or loans obtained from pledged stocks, the stocks they hold have same voting rights.
Observation2: the consensus protocol of bitshares by integrating voting rights into every BTS token is the constitution, which shall be harder to change. Any attempts to modify the BTS voting mechanism e.g. removing debt voting are illegal, and shall be stop. SHARE BUYBACKSPart of the bitshares system's income, such as part of the referral rewards, fees, and other income will go to the fund of committee-account, and it is obvious that the fund belongs to all bitshares holder and not to someone. How to use this fund could be decided by voting elected delegates (Committee), but those decisions also contingents upon bts holder approval. If the committee cannot reach a consensus, then bitshares holders can call a vote on how to use the fund and authorize/or request the committee to act. In the thread post by bitcrab[2], it was proposed to discuss how to use committee fund to buyback. It is a very normal proposal which reflects the will of many bitshares holders, but it has been questioned by someone as gambling. Stockshare buybacks is a technique used to increase shareholder value and provide investors with a return, and a company can fund its buyback by taking on debt or with its cash flow from operations. According to the following description of [3], Companies are ramping up share buybacks in the U.S. stock market, and they’re increasingly using debt to do so. The U.S. companies are on pace to break another record for share repurchases in 2019, using a combination of cash and debt to push the total to close to $1 trillion. Similarly with stock market, we also found a lot of exchanges of cryptocurrency tokens such as Binance repurchase their platform tokens to burn to make the remaining tokens more valuable. Bitshares token has not brought gains for investors for a long time, taking this into account, it is benefit to request committee to process buybacks program. The committee can fund its buyback by taking on debt or with its income flow from operations. If the committee cannot determine the final buybacks program, the bitshares holders can call a vote on buybacks program and request the committee to act.
Observation3: The committee can fund its buyback by taking on debt or with its income flow from operations. If the committee cannot determine the final buybacks program, the bitshares holders can call a vote on buybacks program and request the committee to act. FEED PRICEIn china, a lot of individual investors also enter the futures market, which is very different from the western market. However, individual investors and institutional investors are not balanced in terms of financial strength, and manipulation of settlement price by financial strength often happens. So, in china, all futures exchanger determine the future settlement price by taking the volume weighted average price during a trading day, so as to effectively prevent the risk of market manipulation (The detail can be found in[4]). For the BTS system, investors' debt holdings are completely exposed to CEX, and there is a complete imbalance between individual investors and CEX. Furthermore, in order to get a lot of shorting interest, some CEX used to sell fake BTS to cause the price to fall sharply which influence the trading price of BTS in all markets, and trigger a series of BTS debt explosive .Considering the above discussion, it is necessary to introduce some enhanced feed price algorithm in bitshares. For example, the feed price is the larger one selected between the average value during a period of time and the current value ,so as to resist price manipulation and improve the price recovery ability of BTS.
Observation4: It is necessary to introduce some enhanced feed price algorithm in bitshares, so as to resist price manipulation due to shorting and improve the price recovery ability of BTS. WORKERSSince BM left, the development of BTS is mainly undertaken by some workers. These workers are very important to BTS, and the active gratitude towards work of these workers is very appreciated by us. But on the other hand, these workers have already paid a considerable amount of money, The BTS reserve pool is used to pay workers. Now, the current situation is that, although the volume and activity on the BTS chain is not bad, but the BTS market value ranking is from the highest fourth place to the lower 50th in the past few years, and BTS technology is no longer so attractive compared with other competitors. While BTS is no longer a hot cryptocurrency and BTS investors are not getting any returns, BTS worker is certainly a much hotter business than before. The expenditure of the BTS system exceeds most of the other cryptocurrency, the BTS workers have been paid more nearly 27 million CNY (4 million USD)this year (THANK for refound400k). A Nobel Prize is only about 6 million CNY, and 4 Nobel prizes can be awarded with the expenses of BTS in this years. Development needs to be paid, translation needs to be paid, marketing needs to be paid, meetings need to be paid, papers need to be paid, documents need to be paid, and these expenses are more and more. so the expenses budget must be controlled and adjusted. BTS workers are actually a business now, but lack of management of workers, such as the same work needs to introduce multiple workers to compete, workload evaluation and project acceptance etc. Therefore, it is suggested that, until the management of relevant workers is improved, other workers will be deactivated for a period of time except for necessary worker such as network maintenance, core bug fixing, which will be funded. There may be some BTS holders who are worried about the negative impact on the BTS system introduced by suspending some workers. In fact, lots of the open source softwares on github are developed free by developers, and these softwares are also very successful. Even if BTS spending is reduced, we also believe that developers who love BTS will be willing to join the development. However, The wages of all workers are actually paid by all BTS holders, therefore BTS holders have right to vote on Refund workers to return the pay of other workers to the reserve pool, and introduce a threshold how much votes a worker needs to be active.
Observation5: the expenses budget must be controlled and adjusted. The wages of all workers are actually paid by all BTS holders, and BTS holder have right to vote on Refund workers to return the pay of other workers. We hope that more BTS holder can support refound400k. References[1]
https://bitshares.org/technology/delegated-proof-of-stake-consensus/[2]
https://bitsharestalk.org/index.php?topic=29603.0[3]
https://www.cnbc.com/2019/07/29/buybacks-companies-increasingly-using-debt-to-repurchase-stocks.html[4]
https://baike.so.com/doc/6777843-6993814.html
Topic: consideration on buybacks and other hot issues (Read 60855 times)
