Topic: BitBay OFFICIAL BITBAY Thread Smart Contracts Decentralized Markets Rolling Peg - page 355. (Read 542094 times)

I cant get my hands on a PC with W8 at this time.

Earlier i posted a link and nobody tested it for me... we had to rebuild bitbayd for windows 8. But I need someone to test it.

when are they fixing the smart contact wallet.It doesnt run on windows 8.1

Maybe people are just waiting for markets. In general the cryptocurrency space is pretty stagnant.

Pretty quiet around here these days.

ok, thanks.

I'll have to go away and absorb all that 

Very interesting concept. Let's do it.

That will depend on what you have in liquid assets.

Look at it this way, lets say at the current prices, you have $1000 worth of bitbay (like 10 million coins). And lets say that after the fork, we do 90/10 split.

So, you will only have 1,000,000 coins liquid and 9,000,000 in reserves.

IF we vote for inflation at 1%, then you will be able to spend 1% of the 9 million. If the vote is for 1% deflation then you will be able to spend 99% of the 1 million and the 1% deflation will be forced back as change to the same wallet sending and will be tagged as reserve.

You have only 1/10th of the coins liquid that at the original price would be worth only 100 dollars (assuming the price doesnt move). BUT the supply being reduced can cause the price to increase. Thus, lets say for example your 10 million coins will be worth $10,000 because of the reduced supply. Therefore you have exacly the same amount liquid as you had previously total. Since 1/10th of 10,000 is 1,000.

So, if you did sell the $1,000 worth of coins after the fork, you would have to wait for inflation to access the 90% reserves.

So, lets say I want to purchase a 1975 Fender Strat on Bitbay and I've got the cash in the my wallet - i.e. I'm not selling my coins for another currency, so it won't affect the valuation or impact the peg.

Is it possible that even though I've got them to spend I can't spend them on the Fender Strat because they're locked up in the wallet ?

Yeah im going to be adding a mining rule that is enforced on the inputs which will require them to divide them based on inflation. So if someone tries to spend reserves when there is no inflation, the transaction will get rejected.

Does "illiquid" mean that they can't move the coins at all ? i.e. not even spend them ?

i dont know
but i still believe with david zimbeck
since blackcoin until now never failed with the project,..
i hope so with this

Would this be accurate?

They couldnt sell even if they wanted to. The point is they wont be able to sell 100% of their coins they can only sell what they have liquid. So they may have 10% liquid 90% reserve (after the fork its probable we will start at 90/10 and there will be 900 million reserve and 100 million liquid) The network will only approve liquid transfers. Then that will respond to both inflation and deflation. Also the creation of demand can be done by doing a rolling peg where we usually vote for deflation so supply continually restricts provoking demand.

Of course, but the supply is limited so people can only sell as long as there is demand to buy.

but when pegging really happen
i'm sure a lot o people will sell their coin,..
how do you think,..

See my previous post edited to discuss volume.

ok i know
but with 1 billion coin,is possible to make it done

First you have to ask "what is price" ?

Price is the equilibrium point between supply and demand as illustrated in this graph:



"Pegging" is fixing the price using artificial market control methods to move either the supply curve or the demand curve to the left or right, thereby moving P* to a higher or lower valuation.

BitBay proposes to deploy a mechanism which moves the supply curve to the left by restricting access to markets of coin holders who wish to sell. (Incorporated from NuBits).

https://www.cryptocoinsnews.com/nubits-market-cap-holding-steady-first-week/

To see how well the peg works, go to marketcap and check the dollar price of NuBits...http://coinmarketcap.com. It actually works pretty well. Once you've checked that, check the volume.

Although I'm promoting it here, it actually sticks in my throat that this mechanism works. The reason I don't like it is because it only controls the supply side which is the easy bit. It's a bit like living in a desert and controlling the supply of sand. It would be better to be able to generate demand rather than restrict supply (which is what Bitshares does), but hey, I can't deny that I've been confounded. Nubits seems to have both volume and stable price which amazes me. I can't understand how they achieve that, but it may be that there now is emerging demand for cryptocurrencies that are stable against a fiat currency.



My original criticism of the Nubits approach (restricting supply) was that price was substituted for volume. But again, I was confounded - look at the volumes here...