Look. Stan's (&co, don't know exactly who's after this whole project) idea is to get as much $$ as possible and spread BTS as wide as possible by means of "printing" HERO's. This leads my mind to a question - why? And what should happen just in case if he'll succeeded with this affair. What if people just get into the game without stopping and all these old bucks turn into HERO's. Just imagine that.
1st problem I see here is value of BTS in context with "low" UDS (if USD's purchasing power will decrease as a result of such a vast harvesting).
2nd problem is - I can not see any long term agenda for possible funds raised. More reach people? Or "fiat-reach" people becoming a "crypto-reach" people? What next?
Suppose the game could be more interesting (and thus gain wider adoption) if we could see the Big Idea behind it.
Sorry if it is off-topic here.
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Then people may store their funds as HERO instead of USD considering barely any banks offer 5% APR with zero risk.. we all know that the FIAT markets are going to eventually collapse..
Good, the world doesn't need dominated by the USD.
If HERO impacts the USD externally to the BTS DEX, then we'll be talking about billions of USD held as HERO on the BTS DEX which could only be beneficial for the marketcap of BTS (IMO).
There are no 'funds raised' by HERO other than market fees which are sent to the referral system, dividends (possibly) and the reserve pool (which funds development and witnesses).
If we can convince a small percentage of USD holders to switch to holding HERO then that'll be huge for BTS.
The idea is to provide better alternatives to established FIAT currencies. Why would you hold USD when it appreciates? Why would you accept the risk that banks impose for a lesser interest rate than HERO provides (With zero risk, appreciation not interest).
The big idea is that USD is a failing currency and that the BTS DEX is capable of creating far superior alternatives.
Just remove USD from the picture - what would be the price for HERO than? What would show all those price feeds from our lovely witnesses when (and if) USD will gone? That is my primary question.
HERO is backed by BTS via collateral, but it's price depends on USD. The more BTS you need to back your HERO, the less HERO you can afford for a dollar (despite of the external exchange rate for BTS, which will obviously became huge in such circumstances), and USD will just gone. Can the feed be zeroed, and where will be those 5% per year than?
HERO references USD so it's somewhat still required for price reference.
We could certainly switch from USD as the reference asset to another reference asset, in the case that USD is no longer a functioning FIAT cryptocurrency the world will be completely different and the price of BTS may be astronomical.
If USD fails as a fiat currency, we could potentially switch to an alternative reference asset after resolving the global settlement via the BSIP-018 recovery mechanisms.
The scenario where USD has failed as a FIAT currency has failed is unlikely to occur, if it does occur then people will possibly flee to crypto away from fiat.
And yes, thanks for the note on "no 'funds raised'" - i understand my mistake now. Obviously all this project is not about an accumulation, but about moving from USD to more transparent media. But my question on zero feed for USD vs 5% is still the case.
If USD hits zero (dies as a fiat currency) then we'll switch reference asset after resolving the global settlement (such as the replacement USD currency).