Understood. So if I don't use the advance sending, how will my reserve become liquid? is it a matter of time or is there anything I can do? All my balance has been in the wallet since 2017
Would anyone be able to give me more information about how a reserve becomes liquid? the same balance have been sitting in the same wallet since 2017 and only 0.003 % of my balance is liquid. Is moving it to ax exchange the only way to trigger the 1 month period for unfreezing the funds? would moving the reserve to a different private wallet trigger that 1 month period too?
Thank you in advance.
Take a look at that visual explainer. Reserve and liquid is determined by the supply and the users vote on the supply when they stake. When supply goes up the reserve turns into liquid. In QT you can see a chart of each input that tells you precisely when it changes. When you send reserve it is delayed by a month and that delay has no effect on it's chart. The one month is actually just a difference in speed from reserve to liquid to distinguish them and so sending them has no effect. You have to wait for supply to change by community consensus which usually happens because all the liquid gets bought up and demand increases.
Hi David, thanks for the link, the presentation is a nice complement to the Dynamic Peg whitepaper.
Now, I am usually able to ingest, process and understand technical documentation fairly quickly and have wrapped my head around the various consensus mechanisms, (self)governance models or scaling solutions of numerous projects in the crypto space, yet I still find myself lost, when it comes to how Liquid/Reserve BAY allocation goes, as part of the Dynamic Peg feature. I do apologize for that, I must be missing a piece, that - when filled in - will make everything just click for me.
From what I could gather, there tokens have various states, that have different voting weight in the network, and holders vote for a deflationatry or inflationary trend, ie. influence the circulating liquidity and price. I also understood that as an individual, I have no direct (better to say "instant") say as far as how many of my tokens are Liquid or Reserve. After checking back after three years I found, that only 0.8 BAY of my 20k holdings is liquid, so I did two test transfers, one to myself one to LAtoken, waited a month and found that the tokens were still (and now I know expectedly) Reserve. I need to understand, how I can participate in the voting (eg. through the wallet?), how often this takes place, basically how to gain control over my investment? I admit I plan to cash out marginally but still have a strong affinity to the project and would love to see it succeed! The decentralized marketplaces are the future and we need BitBay! I just need to understand this aspect of the tech better, could you give me a hand and do a ELI5 for this scenario?
Thank you for your kind understanding and time to answer my question.
D.
Well voting is simply done through staking making it provably fair. The more coins you have, the more you win stake with chances to cast votes. Votes are tallied after 3 hours or so... within that time a user could surely vote multiple times because they can win multiple stakes(although it's somewhat random). After those 3 or so hours the peg can go +1% or -1% up to 3 times depending the winning votes(if it was a landslide or not). So up to +3% or -3% total supply of entire economy. The weight of fully liquid votes are increased dramatically when the supply is low and that is because the odds of liquid coins winning a stake are very low (because if you are 90% + deflated more coins are reserve). So the liquid coins can be up to 100 times the strength. This prevents reserve holders from bullying the system.
With that said however, it still works out to the people who have the most coins are usually going to dictate the supply (and they should because they have a much larger investment and more to lose)
And also consider the users usually choose "algorithm" and the algorithm can be changed by the community at any time. Currently the community has agreed to stay the course with the original plan which was to have liquid track 1/100000th the price of Bitcoins peak. At first this was 20 cents, then as BTC increased it pushed peg price up to 60 cents causing liquid holders to gain. We wanted to be inversely correlated to BTC so that we would "never lose"... when BTC goes down BAY peg STAYS the same price. This was in my opinion an awesome choice. However for it to really pop we need believers who put up the collateral trusting the peg will inflate upon a rise in demand.
Either way this strategy works because our supply matches our demand which is obviously low without any good exchanges. Once people start putting up real support supply will naturally skyrocket because of limited liquid coins in existence right now, so it makes sense users push price up above 60 cents (for example to 70 cents) and then that causes supply to inflate in order to correct the price back to 60 cents (the dynamic peg).
Also we did have something in the algorithm that would allow the floor price to increase if it rises up in price for a long sustained period of time. I have no idea what that time was but this maybe was made very strict that the new price floor was genuine, maybe for example a minimum supply increase was required or a certain number of days that would obviously cause major supply increase. The reason to make it hard to push up is because price increases should be genuine and not in response to a senseless pump on low volume... so to punish manipulators of the market. I would have to confirm with Craig or Yshurik if they remember what was decided on.
Anyways, for now it's pretty hard to fight against the algorithm because most users choose it. Although if the community wants to inflate or change the floor they can always start open forum and agree to do that at any time.
As painful as it may seem to have 99.99% of your coins in reserve consider that it is NOT painful for newbie investors who just came in and bought their first few hundred dollars in BAY. They get the knowledge that it will stay very close to BTC price and hold it's peak. Unfortunately, with no exchanges this strategy won't work... so we need to bridge to other networks.
