diff --git a/baip-0005.md b/baip-0005.md new file mode 100644 index 0000000..6b8fa69 --- /dev/null +++ b/baip-0005.md @@ -0,0 +1,74 @@ +``` +BAIP:005 +Title: Set force_settlement_offset of Bitasset to 5 % +Author:Everyone can use it +Status: Committee vote +Type: Committee Proposal +Created: 2020-02-28 +``` + +# Abstract + +Set force_settlement_offset of Bitasset to 5 % + +# Motivation + +- No motivation to create bitAssets +- bitAssets are not used to trade in the market +- Force_settlement_offset didn't have help for bitasset discount +- Force settlement is another form of planned economy +- Force settlement is a suicidal behavior for a bitasset market +- A low offset is kind of theory of financial repression +- Mild inflation will promote the economic development. + +# Rational + +Why we should set force_settlement_offset of Bitasset to 5%? + +We must all know what is theory of financial repression! + +1. force_settlement_offset didn't have help for bitasset discount; +When a person finished a force settlement, he will make a market order which is a little higher than the market price, he will not chose to dump in the market directly, this is a very simple trade Logic. + +2. A market can't maintain high discount under a normal conditon, the price will fall back into the normal price point by the self-regulation of market, currency arbitrage, these will lock the liquidity of bitasset, force the the discount into a normal level. + +3. Force settlement is another form of planned economy. +A lower force_settlement_offset is disrupting the market directly, this is a performance of planned economy. +Force settlement = Exchange Rate Manipulation +Most of the fund is taking the advantage of the market loopholes to kill the new and normal users, didn't flow into the normal transaction, this is not healthy. +Big holder of bitasset can destroy the market and debtor easily with a fixed and lower force_settlement_offset. +We can check biteur and bitcny. + +4. DAI and USDE can "anchor" healthy without force settlement, all we should think about these. + https://oasis.app/trade/market/WETH/DAI + https://www.pizzadex.io/?pair=usdt2usde + +5. 5% offset will maintain until some new mechanism of force settlement is available. + +6. Why it is 5% not other "parameters", as we have 5% offset for a long time(about 11/01/2017-08/08/2019) , didn't have any big problem. + +# Specifications + +**Set force_settlement_offset of Bitasset to 5 %** + + +# Summary for holders + +# Discussion + +https://bitsharestalk.org/index.php?topic=32176.msg341331#msg341331 + +# See also + +Inflation Index: +https://www.imf.org/external/pubs/ft/spn/2010/spn1003.pdf +Inflation, Unemployment, and Monetary Policy by Robert M. Solow, John B. Taylor, Benjamin M. Friedman +Inflation, Saving and Growth in Developing Economies by Anthony Thirlwall +Financial Deepening in Economic Development by Edward S. Shaw +Money and capital in economic development by Ronald I.Mckinnon + + + +# Copyright + +This document is placed in the public domain.