This coin is amazing, I've seen coins pump for a promise of what BAY already has.
I was very excited to find a coin this cheap, but this part really bummed me out -
So it basically takes away the whole beauty of Cryptocurrency. If consumers wanted predictable value determined by small group of people they would not get on this market at first place. We already have predictable USDT.
Plus you are restricting investors to use their coins and they are not allowed to sell it whenever they please.
Crypto is still in embryo phase and its exciting to watch how it develops and where it can go, and rolling out "Pegging" now, in the wild west, just bores me.
I was very excited to find a coin this cheap, but this part really bummed me out -
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How can the freezing/hedging system peg Bay to US$, and how is it possible?
Bay is made to be used by ordinary consumers. They want a currency with a predictable value and without volatility. For example, by deflating the currency, we can make supply match the demand on exchanges. This means we can keep the price equal to a peg price (for example $1). Pegging can be done by controlling supply. By freezing a percentage of the Bay in everyone’s wallet we reduce supply to a level where it meets demand at the price we want.
If coins get frozen then can I still sell them?
In order to allow for a healthy and liquid market, we are considering allowing the sale of reserve coins. However, the condition is, you must lock the coins for 3-6 months and the new buyer will only receive them as reserve. This can allow for new people to enter the market with a long term investment. It may also be useful for large purchases without effecting the price, deposits without using liquid coins or even peer to peer good faith sales or exchange. There are many advantages to frozen assets like lending against them, giving discounts and large swaps.
Bay is made to be used by ordinary consumers. They want a currency with a predictable value and without volatility. For example, by deflating the currency, we can make supply match the demand on exchanges. This means we can keep the price equal to a peg price (for example $1). Pegging can be done by controlling supply. By freezing a percentage of the Bay in everyone’s wallet we reduce supply to a level where it meets demand at the price we want.
If coins get frozen then can I still sell them?
In order to allow for a healthy and liquid market, we are considering allowing the sale of reserve coins. However, the condition is, you must lock the coins for 3-6 months and the new buyer will only receive them as reserve. This can allow for new people to enter the market with a long term investment. It may also be useful for large purchases without effecting the price, deposits without using liquid coins or even peer to peer good faith sales or exchange. There are many advantages to frozen assets like lending against them, giving discounts and large swaps.
So it basically takes away the whole beauty of Cryptocurrency. If consumers wanted predictable value determined by small group of people they would not get on this market at first place. We already have predictable USDT.
Plus you are restricting investors to use their coins and they are not allowed to sell it whenever they please.
Crypto is still in embryo phase and its exciting to watch how it develops and where it can go, and rolling out "Pegging" now, in the wild west, just bores me.
I don't think you are grasping the wider implications of the peg. It will certainly not take away the excitement at all, well not for current investors anyway.
Also I believe there will be no small group deciding anything that is why the voting is there for everyone.
I think the pegging could be enhanced by tiered pos levels already set in regarding amount of bay held and duration of the holding.
I like the pegging but also i think there are more strings to bays cap that that.
I like the decentralised explorer for mobile lite versions of bay and the api and possible side chains, dpos pruning and everything else david is thinking about.
When you have a developer like this then many things become very possible not just dreams and talk bullet points on a white paper that may as well be toilet paper.
Time is our biggest problem but still I think we are quite ahead of many other projects chasing their dream that is our reality.
"Not for current investors" thats the keyword. Only reason someone would buy BAY in the future will be solely for purchasing something else. Since coin will no longer be volatile, there is no point to invest with hopes to sell it later for higher price. Also you would need to freeze at least 95% of coins to keep the price at 1$. If marketcap is 20 million right now and you need to bump it up to 1 billion, you have to freeze 98% of coins.
I like other features too, but pegging is something I strongly disagree with. Still invested 10% of what I was thinking to invest. Just to see if I will be proven wrong.
I believe the pegging will never be used to bring 20M to 1BN in one big jump that simply would not work out at all. Like you say 98% having their coins locked forever would not go down well. I guess it will be vetted on demand at the time.
The peg is very complex and I was told it can be used to create huge pumps and even dumps if it was required. I mean it would be able to magnify market sentiments.
However, yes the pegging in times of extreme volatile market conditions could be briefly activated to ride out the storm.
To be 100% honest I am not sure exactly how it works but I am guessing nobody will vote bay to be dumped since the voters are bay holders.
Even if the peg was able to flatten troughs and spikes better than any other coin I expect the uptake of a very stable decentralised trustless currency would attract many more vendors than any other CC. Therefore just the adoption and uptake on a mere 1BN tokens could have a huge positive value increase.
Like yourself (maybe because I don't understand it fully) I don't think it is the best of bays features merely another string to its bow.
I like (maybe because i find the simple concept easier to understand) the idea of tiered pos levels depending on amount and duration of bay held much more likely to cause price stability and over all increase.
I'm sure david will reply soon to explain how the pegging works exactly and my idea about it is perhaps not correct.
No it won't have a fixed price. It's price is determined by supply and demand.
If the supply is low and the demand is high, the price will rise. Period.
If you have 40M and 20M don't assume the price or marketcap will be the same. Because at half the supply it will be cheaper to buy up the liquid coins. The total marketcap would be the same but the price would potentially be double or more.
Example, if you have 40M coins at $1 and you go down 50% to 20M then you have less liquid coins. At the exact same level of demand price could go to $2 at 20M
Thus the marketcap of liquid coins might not change(but it could) and the price would most likely double(but it can certainly go higher). In this case it means you sell half your coins for the same value you would have sold all of your coins. The rest of your coins you hold in reserve in case demand increases etc.
So no, this is not a fixed price whatsoever.
The community simply has more control over the supply and we can use algorithms to achieve our goals as well.
