Introducing Ripple Currency: DYM

[Monster Tent]

If you could send each owner of a coin in a specialised currency "dividends" it would be equivalent to a decentralized stock market.

If you think about it each bitcoin is 1/21 000 000 share of the bitcoin "company"

[TTBit]

I dont get it? if I can buy 1 DYM with XRP's will that DYM not be backed with a dime, or if its is backed will the XRP value be added to the DYM balance sheet too?

I need to get hooked in to the DYM to see if I can understand it better. Can I add the currency to my drop down menu if I dont have any and what do I need to do past trusting the address you posted?

rsZvcvACPWoTN2Eazzb5radzQX18s3DuK8

My DYM iou is backed by 1 silver dime. I will deliver a silver dime to you if you send me 1 DYM. How you acquire that DYM is up to you. The 3 easiest ways now are to send me 1 silver dime, buy one with bitstamp USD, buy one with XRP. In order to hold DYM, you must trust rGwUWgN5BEg3QGNY3RX2HfYowjUTZdid3E for DYM in the amount you are willing to hold. You wouldn't want to create an order to buy 20 DYM, but only trust me with 3.

Adding DYM/USD to your drop down menu? I don't know how to do that.

[TTBit]

Update: Total DYM is down to 1990, there was a redemption. Giving away 100 xrp for sending in dimes for DYM.

[drewdtom]

Okay, its all falling in to place now, but your selling real silver dimes for a two week old digital currency. A currency that no one can predict what will happen with. I'm not say not to but crazy stuf friend

Its not unlike the dollar really, I hold my cash in silver (more and more in bitcoin) and I have no idea when the dollar I uses day to day is going to completely crumble, but I do sleep well at night knowing I can still put gas in my car with the paper in my pocket tomorrow, I dont have any expectation that XRP's with exists in the real world tomorrow. Just saying... but on with the experiment!

DYM is not an option in the trust drop down, I do however trust TTbit for 1BTC. How to add DYM exactly, Im buying

[nelisky]

Okay, its all falling in to place now, but your selling real silver dimes for a two week old digital currency. A currency that no one can predict what will happen with. I'm not say not to but crazy stuf friend

Its not unlike the dollar really, I hold my cash in silver (more and more in bitcoin) and I have no idea when the dollar I uses day to day is going to completely crumble, but I do sleep well at night knowing I can still put gas in my car with the paper in my pocket tomorrow, I dont have any expectation that XRP's with exists in the real world tomorrow. Just saying... but on with the experiment!

DYM is not an option in the trust drop down, I do however trust TTbit for 1BTC. How to add DYM exactly, Im buying

It doesn't need to be an option, you can manually type it in.

[nelisky]

Okay, its all falling in to place now, but your selling real silver dimes for a two week old digital currency. A currency that no one can predict what will happen with. I'm not say not to but crazy stuf friend

Its not unlike the dollar really, I hold my cash in silver (more and more in bitcoin) and I have no idea when the dollar I uses day to day is going to completely crumble, but I do sleep well at night knowing I can still put gas in my car with the paper in my pocket tomorrow, I dont have any expectation that XRP's with exists in the real world tomorrow. Just saying... but on with the experiment!

DYM is not an option in the trust drop down, I do however trust TTbit for 1BTC. How to add DYM exactly, Im buying

Also, beware of extending trust to individuals (as opposed to issuers). TTBit is DYM's issuer, so that is fine, but trusting him for BTC at this moment may give you some grief, not because he is not to be trusted but because Ripple isn't yet handling that as well as it should (but that is being fixed).

As for the "two week old" part, consider this; If you hold silver and you store it in a bank's safe (not saying you do, just go along with it) you hold the silver, it is yours, not pegged to the dollar and all but... you have to trust the bank to not steal your silver. That's what is happening here, you are trusting TTBit to hold the silver for you. Ripple is just a ledger, and a public one for that matter, meaning that if tomorrow ripple just dies, never to be seen again, I'll  still have access to that ledger and, even if I didn't, you trust TTBit to give you the silver as per the DYM you held so as long as you can convince him you actually held that much.

Ripple facilitates all this and is an amazing tool for that, but we are used to dealing with 3rd party insurance, banks are audited, we have protection so we don't need to do due diligence to assert we are dealing with small or no risk. With bitcoins and ripple there's a dramatic change there, we are solely responsible for whom we trust and (with ripple) for how much we trust them. Ripple facilitates, keeps books, processes transfers, but it is your responsibility to know there is no recourse, trust only those that you actually trust and for how much you trust them.

[drewdtom]

All good food for thought 

But really, when I go to the tust page, and enter TT's address, and add the amount, the next filed is a drop down for currency type. DYM is not an option.

Must be missing something simple?

[drewdtom]

It doesn't need to be an option, you can manually type it in.

Yeah, it was that simple, thanks

[TTBit]

Okay, its all falling in to place now, but your selling real silver dimes for a two week old digital currency. A currency that no one can predict what will happen with. I'm not say not to but crazy stuf friend

I am not selling or buying any dimes. Buyers and sellers come together on ripple and trust me to hold the dimes they are trading. Some have dimes that want XRP, some have USD that want dimes. By having a 3rd party hold the dimes, it opens the door to more trades.

crazy stuff indeed my friend!

If I can suggest: I think I know what you want to do. Don't trust me with BTC, trust me for DYM (say 5).

[drewdtom]

oh this is fun. I now have 1 DYM (only cost me 2500 magic internet moneys) and I can trade it all around the world, anyone who I give it to can redeem it at anytime. It is now possible to exchange this silver dimes over the internet fast and easy. The world will never be the same!

So just to get back to theory a bit, you are selling in the sense that the person who took delivery of 10 dimes has no obligation to buy back in and send you the dimes back, if a rush of people wanted deliver I imagen that you would be converting your XRP in to something that would buy you more silver (BTC or USD) How in the future would you show that you do have the dimes and how would we know that there are as many DYM's in the market as dimes you say you have?

I trust you, but how will others with out driving down south and meeting you face to face?

Also, nelisky if ripple where to fail, would the system still run? my understanding is that nodes on the network are getting payed to operate, if the XRP fees they get are not worth anything would they process transaction on the network. (very limited understanding of the ripple system, I just asume it a lot like bitcoin in this case)

[nelisky]

oh this is fun. I now have 1 DYM (only cost me 2500 magic internet moneys) and I can trade it all around the world, anyone who I give it to can redeem it at anytime. It is now possible to exchange this silver dimes over the internet fast and easy. The world will never be the same!

So just to get back to theory a bit, you are selling in the sense that the person who took delivery of 10 dimes has no obligation to buy back in and send you the dimes back, if a rush of people wanted deliver I imagen that you would be converting your XRP in to something that would buy you more silver (BTC or USD) How in the future would you show that you do have the dimes and how would we know that there are as many DYM's in the market as dimes you say you have?

I trust you, but how will others with out driving down south and meeting you face to face?

Also, nelisky if ripple where to fail, would the system still run? my understanding is that nodes on the network are getting payed to operate, if the XRP fees they get are not worth anything would they process transaction on the network. (very limited understanding of the ripple system, I just asume it a lot like bitcoin in this case)

I don't know the specifics of the contracts between nodes, if there are any, but while ripple is fundamentally different from bitcoin it does have one thing in common, the network is distributed which means that as long as there are 2 nodes, the network is alive between them (though disconnected from the rest, if there is a rest, and reconnection may invalidate things that diverged, just like in bitcoin).

So, when you said ripple dying I assumed no nodes communicating. Since I can run a node myself I have a copy of the ledger locally. Keep in mind ripple is still closed beta to some extent so there are not enough nodes in the wild to support the network on such fails, which is a good thing at the moment as the rules and code are still being tweaked and the ripple team has some control over which versions are available and thus prevents network partitioning.

As for you question to TTBit, let me try to explain. The person who took delivery gave back the IOUs to TTBit, which means TTBit doesn't owe that person the 10 dimes anymore... this is the real kicker, we usually see money as something of substance (even though that is more often than not untrue) but in this case there is no misunderstanding, having a DYM is not having a dime, in fact TTBit has no DYMs at all, there's no such thing for him as the issuer. What there is is a balance of dimes TTBit states he has and owes you. When he sends the coins and receives the DYMs he is in reality destroying the DYMs, because he owes them no more.

This means that if a bunch of people wanted delivery, that bunch of people would hold IOUs they would be redeeming and TTBit's "DYM contract" states he holds the physical dimes for every DYM issued, thus he would most simply send out the dimes and the IOUs would be extinguished.

Now, if demand would rise and he wanted to put more DYM into the market, keeping with the rules he put forward initially, he would have to acquire the dimes through whatever means he chose and hold them physically before issuing more IOUs, but that's just because he chose to do business like that.

You can choose to say you'll sell DYMs without holding dimes, but you can't sell TTBit DYMs without him holding the dimes, and for you to sell your own DYMs others need to trust you for them.

[nelisky]

Chances to win 1 DYM at TAABL.net!

Currently 1 DYM goes for ~$2 or roughly 0.045 BTC, so I have started a BitPick for 1 DYM (there will be two in total, one after the other) with bets priced at 0.005 BTC.

NOTE: This is a Pick 2, meaning it will win when the first 2 hex chars of a block hash match your bet, so it will likely be awarded quickly and with a very small bet count! You need to act fast if you want it

Common BitPick rules apply, the winner must be able to sign a message with the sending bitcoin address private key.

[TTBit]

oh this is fun. I now have 1 DYM (only cost me 2500 magic internet moneys)

Haha, very nice!

How in the future would you show that you do have the dimes and how would we know that there are as many DYM's in the market as dimes you say you have?

This is where the trust comes in, and a market may develop. I could pay an auditor to audit the stash. If you try to redeem and I don't have any dimes, you have another avenue to sue (me and the auditor). As it stands now, I only offer my reputation.

I trust you, but how will others with out driving down south and meeting you face to face?

Trust in me would need to grow.

If ripple fails, that doesn't mean my IOUs are no good, just the network. I'd still redeem.

[TTBit]

After watching some silver dimes go off on ebay for high prices, I am introducing a way to convert DYM->PayPal. Upon redemption of DYM, I can send a photo of your specific dimes for auction on ebay. You can then direct me to ship to the buyer's address. You never have to touch a dime! Conversely, if you buy some dimes on ebay and want DYM, you can have them shipped to me.

PM me before you redeem please.

Paying 1000 XRP/$1 face for the next $20 face converted to DYM.

[Jenger]

I don't understand. Why would anybody purchase dimes on ebay, pay a high premium, and then ship them to you for "DYM"?

This whole buying PM shares and letting others hold onto them for you goes against everything I have ever been told about investing / collecting PM.

[TTBit]

I don't understand. Why would anybody purchase dimes on ebay, pay a high premium, and then ship them to you for "DYM"?

This whole buying PM shares and letting others hold onto them for you goes against everything I have ever been told about investing / collecting PM.

It is currently better to buy DYM (or deliver to me) and sell on ebay. But as that happens, the price of DYM should be bid up to that of ebay prices. If it overshoots, I expect it to swing the other way.

Buying PM and having someone else store them for you is a risk. DYM is not for those wanting to hold for 10 years. But some people need to sell, and some are looking to buy. We have all trusted our BTC to exchanges for IOUs in return. I'm sure MtGox right now has a pretty good supply of BTC that they don't own. Many still hold some mybitcoin IOUs. But we take those IOUs at risk because it makes it easier to achieve our financial goals.

If you don't place any orders in DYM and don't extend trust to me, you can't be hurt by it. But you can't benefit either.

[baggyp]

I don't understand. Why would anybody purchase dimes on ebay, pay a high premium, and then ship them to you for "DYM"?

This whole buying PM shares and letting others hold onto them for you goes against everything I have ever been told about investing / collecting PM.

It is currently better to buy DYM (or deliver to me) and sell on ebay. But as that happens, the price of DYM should be bid up to that of ebay prices. If it overshoots, I expect it to swing the other way.

Buying PM and having someone else store them for you is a risk. DYM is not for those wanting to hold for 10 years. But some people need to sell, and some are looking to buy. We have all trusted our BTC to exchanges for IOUs in return. I'm sure MtGox right now has a pretty good supply of BTC that they don't own. Many still hold some mybitcoin IOUs. But we take those IOUs at risk because it makes it easier to achieve our financial goals.

If you don't place any orders in DYM and don't extend trust to me, you can't be hurt by it. But you can't benefit either.

My question, and I am really just a newb when it comes down to it and you have 10+ times more posts than me... but what is in this for you? This seems like alot of effort and you are not even keeping a cut?

[TTBit]

I don't understand. Why would anybody purchase dimes on ebay, pay a high premium, and then ship them to you for "DYM"?

This whole buying PM shares and letting others hold onto them for you goes against everything I have ever been told about investing / collecting PM.

It is currently better to buy DYM (or deliver to me) and sell on ebay. But as that happens, the price of DYM should be bid up to that of ebay prices. If it overshoots, I expect it to swing the other way.

Buying PM and having someone else store them for you is a risk. DYM is not for those wanting to hold for 10 years. But some people need to sell, and some are looking to buy. We have all trusted our BTC to exchanges for IOUs in return. I'm sure MtGox right now has a pretty good supply of BTC that they don't own. Many still hold some mybitcoin IOUs. But we take those IOUs at risk because it makes it easier to achieve our financial goals.

If you don't place any orders in DYM and don't extend trust to me, you can't be hurt by it. But you can't benefit either.

My question, and I am really just a newb when it comes down to it and you have 10+ times more posts than me... but what is in this for you? This seems like alot of effort and you are not even keeping a cut?

I am exploring ideas as a gateway for other things. Business is easier with higher levels of trust -- although you can argue so is scamming. Getting in on the ground floor of a brand new technology might pay of handsomely in the future, all for a few hundred dollars of shipping & insurance now. And it hasn't been a lot of effort, ripple is doing the hard lifting - accounting and trading.

Ultimately, I love shit like this and think its super cool.

[TTBit]

Update: Total DYM supply has been increased to 2185.91. I'm going to close the XRP bonus for DYM, paid 20,000 XRP.

Be sure to check out the DYM (rGwUWgN5BEg3QGNY3RX2HfYowjUTZdid3E) / Bitstamp USD market (rvYAfWj5gh67oV6fW32ZzP3Aw4Eubs59B)

[random_cat]

This is very interesting.

Supposing I fetch $100 face of junk silver (and a scale -- I barely trust my present scale to measure my coffee), I too could issue DYMs according to TTBit's specification.  If a few trust me as well as TTBit then we establish a market for TTBid DYM /  random_cat DYM.

Now I also happen to trust TTBit for 20 DYM.

 If I understand properly, assuming my DYMs match the standard that means I must drive 20 TTBit DYMs out of the market (and into my wallet) unless  TTBit also extends trust my direction.  For larger transactions, the other trusters make the market.  This changes with access to the quality and transaction measures in the ripple system.

Have I got that correct?