BitBay OFFICIAL BITBAY Thread Smart Contracts Decentralized Markets Rolling Peg

[sidhujag]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

NuBits had a peg but it temporarily broke and there was a scandal on ccdek or whatever the exchange was called.

NuBits uses custodial wallets and is probably front running.

Then there is BitUSD. They use collateral in BTS. It's interesting but relies on BitShares staying alive and costs alot of BitShares to put/call. It works for now. It is a low market cap at 100k

Then there is Tether. So far it works but it depends entirely on their company backing the coin.

None of those pegs are scalable, none of them can roll in price. They aren't attractive to speculators either.

BitUSD is probably the most promising since Tether can fall at any minute. But if BitShares falls so does BitUSD.

In Bitbay even if Bitcoin falls, Bitbay survives! It's decentralized and no backers or custodians required. However out peg can fluctuate in price. Munti can elaborate on economic pegs since that's his area of expertise.

Vitalik wrote a blog about his approach with schellingcoin and a prediction market based one easily possible with eth which will be better than whats out today

[RJF19]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

That's just it - there isn't a safe one that I know of!

BitBay's approach will be different obviously. It's not going to be pegged to anything, e.g., bitcoin, gold, USD, etc.
It's going to be completely independent; simply based on supply and demand.
This can make for a day trader's 'wet dream'.

I wish I knew more about it myself, but take for example all of the possibilities in regards to a Bay to BTC market pair.

If a trader see's signs of a big price drop coming to BTC, rather than sell out his BTC to USD, he could accumulate BitBay instead over the course of a few days. There would be more than one way to do this. He could potentially buy them  straight from the exchanges, straight off the BitBay marketplace (without a middleman), or even a potential 'futures' contract.
If the traders hunch is correct and BTC starts to drop over the course of a few days, then others will be scrambling to hedge their investment capital. This would create an increase in demand to Bay from traders trying to hedge their investment capital would naturally cause Bay to increase in value.

Now this trader has multiple options...

• He could sell his bag, which would be 100% liquid at the time (except in regards to futures contracts).
• Or he could hold, waiting for the right moment to sell potentially before the UVP protocol implements a liquid to frozen coin ratio adjustment. In this example, the increase in demand for BitBay would cause the ratio to increase liquidity of other people's wallets. So the traders best option might be to time this event and sell immediately before it happens to maximize profit on the market's demand. Then he could still earn even more profit by predicting the price support level after the coin get's flooded with new liquidity and buy up more Bay in hopes that the hedgers are not done yet with their exodus, etc, etc, etc.
• Or he could simply wait until he see's the price of BTC to hit a support level and then sell his bay at a premium before the masses try to follow suit. This guessing game is going to be quite intriguing to say the least! Yet if you miss out on the swings of peaks and valleys you still have reassurance that this thing will (long term)continually increase in value - so the only losers are the impatient traders that sell at a loss rather than hold through another cycle.

 

All of this can be taking place with the trader having assurance that the peg will protect his capital from a potential 'back-stabbing' whale dump that currently seems to plague so many coins with their >insertcoin</BTC market pair relationship, because in BitBay, if the market gets hit with a large seller all at once, your coins would freeze proportionally to your existing quantity. This helps the price balance out without any major FOMO panic sells.

BitBay will give investors a tool to increase profit potential compared to the option of hedging back to the USD. Sure there is no leverage advantage, but that makes it even more attractive to conservative money. And who knows... with Double Deposit Escrow, I'm sure there is a way to create leverage.

The more people see the system as a safe investment, the more they will want it, increasing demand and price in a healthy, organic trend. This will excite merchants and naturally create a positive, organic domino effect.

For those that can't stand the idea of a mandatory network adjustment to their wallets liquid to frozen coin ratio, they will still have options to trade - that's where the futures contracts come into play.

Again, I wish I knew more about all the goodies in store for the rolling peg (UVP - User Value Protection) protocol.
We will just have to wait a little bit longer before it's finally implemented.

Lets face facts shall we? There isn't a "safe" anything in this world and certainly not in crypto, fiat or even gold, all are subject to wild swings and losses under the right circumstances. I think David has the right idea and, being the first to use the technology he has described, a real advantage. The plan avoids centralization, which others don't, it lets the users and investors control the supply and value right? As I see it anyway, correct me if I'm wrong David.

This will be grand experiment on a global scale albeit initially confined to BAY investors, it should be interesting to watch it unfold...

[dzimbeck]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

That's just it - there isn't a safe one that I know of!

BitBay's approach will be different obviously. It's not going to be pegged to anything, e.g., bitcoin, gold, USD, etc.
It's going to be completely independent; simply based on supply and demand.
This can make for a day trader's 'wet dream'.

I wish I knew more about it myself, but take for example all of the possibilities in regards to a Bay to BTC market pair.

If a trader see's signs of a big price drop coming to BTC, rather than sell out his BTC to USD, he could accumulate BitBay instead over the course of a few days. There would be more than one way to do this. He could potentially buy them  straight from the exchanges, straight off the BitBay marketplace (without a middleman), or even a potential 'futures' contract.
If the traders hunch is correct and BTC starts to drop over the course of a few days, then others will be scrambling to hedge their investment capital. This would create an increase in demand to Bay from traders trying to hedge their investment capital would naturally cause Bay to increase in value.

Now this trader has multiple options...

• He could sell his bag, which would be 100% liquid at the time (except in regards to futures contracts).
• Or he could hold, waiting for the right moment to sell potentially before the UVP protocol implements a liquid to frozen coin ratio adjustment. In this example, the increase in demand for BitBay would cause the ratio to increase liquidity of other people's wallets. So the traders best option might be to time this event and sell immediately before it happens to maximize profit on the market's demand. Then he could still earn even more profit by predicting the price support level after the coin get's flooded with new liquidity and buy up more Bay in hopes that the hedgers are not done yet with their exodus, etc, etc, etc.
• Or he could simply wait until he see's the price of BTC to hit a support level and then sell his bay at a premium before the masses try to follow suit. This guessing game is going to be quite intriguing to say the least! Yet if you miss out on the swings of peaks and valleys you still have reassurance that this thing will (long term)continually increase in value - so the only losers are the impatient traders that sell at a loss rather than hold through another cycle.

 

All of this can be taking place with the trader having assurance that the peg will protect his capital from a potential 'back-stabbing' whale dump that currently seems to plague so many coins with their >insertcoin</BTC market pair relationship, because in BitBay, if the market gets hit with a large seller all at once, your coins would freeze proportionally to your existing quantity. This helps the price balance out without any major FOMO panic sells.

BitBay will give investors a tool to increase profit potential compared to the option of hedging back to the USD. Sure there is no leverage advantage, but that makes it even more attractive to conservative money. And who knows... with Double Deposit Escrow, I'm sure there is a way to create leverage.

The more people see the system as a safe investment, the more they will want it, increasing demand and price in a healthy, organic trend. This will excite merchants and naturally create a positive, organic domino effect.

For those that can't stand the idea of a mandatory network adjustment to their wallets liquid to frozen coin ratio, they will still have options to trade - that's where the futures contracts come into play.

Again, I wish I knew more about all the goodies in store for the rolling peg (UVP - User Value Protection) protocol.
We will just have to wait a little bit longer before it's finally implemented.

Lets face facts shall we? There isn't a "safe" anything in this world and certainly not in crypto, fiat or even gold, all are subject to wild swings and losses under the right circumstances. I think David has the right idea and, being the first to use the technology he has described, a real advantage. The plan avoids centralization, which others don't, it lets the users and investors control the supply and value right? As I see it anyway, correct me if I'm wrong David.

This will be grand experiment on a global scale albeit initially confined to BAY investors, it should be interesting to watch it unfold...

Thats correct. And because they control it, they will adjust the supply to whatever is healthy for trading. The whole point of it is to give it a way to regulate its own value without centralized institutions including backers, fancy trading tactics, put and sell tactics, custodians and government or political policy.

It just gives all users control over the most BASIC rule of value. Supply and demand! We control the supply, and the frozen assets are still there to reward early investors... something they can sell as a "future" or bond or collateral for a loan in exchange for liquid coins at any time. Or they can hold the frozen coins until inflation comes and at a higher price. So with that there are two speeds of money. Liquid high speed money and frozen extremely slow speed money. And I see no reason why other coins won't be inspired to start their own variations of the freezing tactic. Other coins may want to make a coin with a slower interest rate or variable or use different voting algorithms or even add an incentive for parking coins (like NuBits) which would be in effect a bond.

Anyways this makes crypto what it should have been! It should have been "programmable money". But people keep trying to make Bitcoin similar to the USD. But why should we be forced to treat crypto like dollars when we can control the economy itself?? Its more or less like a decentralized bank.

Anyways, the only trust we have to place is in exchanges to hope they wont oversell coins. It would hurt them if they allow it because the miners would deny withdraws.

Of course the one thing we can't control is Demand!

But by controlling supply we can make it match the demand. If for example, I made a piece of artwork, and it was the only piece of its kind, the supply would be "1". So as long as one person wants that art piece upon seeing it the art will sell.

In this case, you can adjust your supply down to the demand and thats fairly easy to predict and read since we have a daily volume on the exchange which gives us an idea of what the demand is. When pegging starts up, I'm guessing that volume will go up. And then being the first coin to do this will make it so the volume should always be sufficient for speculators or at least for investors here to see a return on their investment.

I guess time will tell.

[cryptohunter]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

NuBits had a peg but it temporarily broke and there was a scandal on ccdek or whatever the exchange was called.

NuBits uses custodial wallets and is probably front running.

Then there is BitUSD. They use collateral in BTS. It's interesting but relies on BitShares staying alive and costs alot of BitShares to put/call. It works for now. It is a low market cap at 100k

Then there is Tether. So far it works but it depends entirely on their company backing the coin.

None of those pegs are scalable, none of them can roll in price. They aren't attractive to speculators either.

BitUSD is probably the most promising since Tether can fall at any minute. But if BitShares falls so does BitUSD.

In Bitbay even if Bitcoin falls, Bitbay survives! It's decentralized and no backers or custodians required. However out peg can fluctuate in price. Munti can elaborate on economic pegs since that's his area of expertise.

Vitalik wrote a blog about his approach with schellingcoin and a prediction market based one easily possible with eth which will be better than whats out today

What does this mean? are you saying it is better than what is there now or better than anything else you have seen put forward? I'm sure bays pegging system will be equally as good if not better.

[sidhujag]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

NuBits had a peg but it temporarily broke and there was a scandal on ccdek or whatever the exchange was called.

NuBits uses custodial wallets and is probably front running.

Then there is BitUSD. They use collateral in BTS. It's interesting but relies on BitShares staying alive and costs alot of BitShares to put/call. It works for now. It is a low market cap at 100k

Then there is Tether. So far it works but it depends entirely on their company backing the coin.

None of those pegs are scalable, none of them can roll in price. They aren't attractive to speculators either.

BitUSD is probably the most promising since Tether can fall at any minute. But if BitShares falls so does BitUSD.

In Bitbay even if Bitcoin falls, Bitbay survives! It's decentralized and no backers or custodians required. However out peg can fluctuate in price. Munti can elaborate on economic pegs since that's his area of expertise.

Vitalik wrote a blog about his approach with schellingcoin and a prediction market based one easily possible with eth which will be better than whats out today

What does this mean? are you saying it is better than what is there now or better than anything else you have seen put forward? I'm sure bays pegging system will be equally as good if not better.

Im not sure whats better its still privately being done so nothing to compare it with yet.. im sure david is doing best he can with what hes got and it will closely match the design of what it was intended to do. Im sure vitalik would be interested in seeing some code because it was of high interest to him when he wrotr about it a few times.. he would be able to disect it better than most around here save for a few btc core devs

[cryptohunter]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

NuBits had a peg but it temporarily broke and there was a scandal on ccdek or whatever the exchange was called.

NuBits uses custodial wallets and is probably front running.

Then there is BitUSD. They use collateral in BTS. It's interesting but relies on BitShares staying alive and costs alot of BitShares to put/call. It works for now. It is a low market cap at 100k

Then there is Tether. So far it works but it depends entirely on their company backing the coin.

None of those pegs are scalable, none of them can roll in price. They aren't attractive to speculators either.

BitUSD is probably the most promising since Tether can fall at any minute. But if BitShares falls so does BitUSD.

In Bitbay even if Bitcoin falls, Bitbay survives! It's decentralized and no backers or custodians required. However out peg can fluctuate in price. Munti can elaborate on economic pegs since that's his area of expertise.

Vitalik wrote a blog about his approach with schellingcoin and a prediction market based one easily possible with eth which will be better than whats out today

What does this mean? are you saying it is better than what is there now or better than anything else you have seen put forward? I'm sure bays pegging system will be equally as good if not better.

Im not sure whats better its still privately being done so nothing to compare it with yet.. im sure david is doing best he can with what hes got. Im sure vitalik would be interested in seeing some code because it was of high interest to him when he wrotr about it a few times.. he would be able to disect it better than most around here save for a few btc core devs

Well i guess we need to wait and see. I have great faith in davids design and coding. I imagine with eths funding david could have done some amazing things.

I often think it's a shame you and david did not collaborate at the start on this kind of project. Would have been interesting to see what you could have done by now if working together rather than on different but similar projects.

[Munti]

Where is the working example in crypto, where a peg has, and continues to, work as intended?

NuBits had a peg but it temporarily broke and there was a scandal on ccdek or whatever the exchange was called.

NuBits uses custodial wallets and is probably front running.

Then there is BitUSD. They use collateral in BTS. It's interesting but relies on BitShares staying alive and costs alot of BitShares to put/call. It works for now. It is a low market cap at 100k

Then there is Tether. So far it works but it depends entirely on their company backing the coin.

None of those pegs are scalable, none of them can roll in price. They aren't attractive to speculators either.

BitUSD is probably the most promising since Tether can fall at any minute. But if BitShares falls so does BitUSD.

In Bitbay even if Bitcoin falls, Bitbay survives! It's decentralized and no backers or custodians required. However out peg can fluctuate in price. Munti can elaborate on economic pegs since that's his area of expertise.

My apologies in advance for what I know must end up as a long winded post, but I'm starting to realize a lot of people don't know much about pegging.
If you look at it schematically there are only two kinds of peg, asset based and trust based.

Asset based peg was the first generation of pegs. Governments or institutions like banks would hold an amount of gold or silver that equaled the value of the money or IOU's they issued. The gold standard is the most commonly known variation of this, and has several subclasses. There are several problems with asset based pegs.

1. The value of the asset can change dramatically like it did when the silver standard broke down.
2. It's not practical to have an asset that is physical like gold because it's time consuming, expensive, and risky to move around when needed.
3. At the end of the day an asset based peg is also a trust based peg because you trust the government or institution to have the amount of asset they claim they have.
4. Even if they have the asset, they can run away with it! This is especially a danger with crypto based asset pegs as you can imagine...
5. Most use cases can be solved cheaper by other means like SWAPS or CDF's. (It is possible to make financial instruments like those with Bay's smart contracts)


The trust based peg is what we see in fiat. (Fiat is latin and means "it shall be". Referring to governments defining their their money is worth something and how much)  For most developed countries, Bretton Woods was the transition from asset based to trust based peg. Bretton Woods was originally mainly asset based (gold) but also had a trust based element to bridge temporarily gaps. Pegging is a complicated topic in fiat because most fiat has some pegging in it, declared or not. The reason is obvious. Trade surplus or defecit is heavily influenced by currency exchange rates, and thus influence a lot of other parameters you would want to control like unemployment, taxes, welfare, etc.
The declared pegs are the easy ones to see, but they can vary a lot. First generation of fiat pegs used to be what I call hard pegs, meaning they don't allow much deviation from target. This is what we have in Bretton Woods with +/- 1%. The advantage of the hard peg is of course it's stability when it holds, giving very predictable terms for trade etc. The disadvantage is that it is the easiest to break, and that it creates a shock in the economy when it breaks. Establishing a trustworthy new hard peg after your first one is broken is also difficult. Hard pegs are relying heavily on buy/sell walls either de facto placed, or (more commonly) expected by the market when outer limits of the peg are reached. There are two main reasons why the hard peg is the easiest to break:

1. Over time the fundamentals in the countries economy or the ability to defend the peg may change a lot, and thus make the pegged value unrealistic. That is an open invitation for traders to break the peg.
2. It is very profitable for traders to break a peg because of the fomo it creates when it's broken.

Hard or relatively hard pegs in fiat have a long tradition for failing. Modern pegs tend to be softer i.e. allow more movement, and are often not declared at all. They don't provide the same predictability as the hard ones, but are considered more robust. Have you noticed that many central banks keep mentioning inflation targets? They are often a key element in modern pegs because they directly influence the amount of money printed, and thus are an important parameter in finding the "correct" exchange rate between currencies.

Sidhujag mentions a third peg described by Vitalik. A prediction based peg. That is not a peg. That is a lottery! Even though hard pegs have a history of failure, they would be much safer than the prediction based peg because they don't fail that often. Prediction based peg has much in common with the technical analysis many traders rely on. Just like TA, prediction based peg can be expected to often be a self fulfilling prophecy. But would you bet your house on it? I wouldn't. I'm not going to be a participant in the battle regarding the usefulness or "truth" in TA, but for those of you who don't know this; the theory behind TA is that the market is right, and that the collective knowledge of fundamentals is reflected in the price of a currency, commodity, or whatever. Well, in crypto there are few fundamentals compared to stock market or forex. This leaves the field wide open to whales. And news about fundamentals can have 10x the impact in crypto compared to forex. So I completely disagree with you sidhujag. Schelling coin would not be better than the pegging attempts we already see in crypto, it would be the worst of them all. That said, it's a fascinating concept, and I'm sure there are other use cases where it can have a lot of value.

So, that was a lot about pegging in fiat. How is that relevant? Mostly not. But we use the term pegging, and fiat is where we can see what has worked and what not. Also the reason for one or the other. The reason pegging is so complicated in fiat is because, as I have mentioned before, it affects and is affected by so many factors in a country's economy. It's less complicated in crypto. If you go back to early posts by David you will see that it was not decided in the beginning if Bay should have a fixed (hard) peg or a rolling (soft) peg. Fiat shows us that rolling peg is much more robust, so that's why we go for that. There are a few other topics from macro economy like flow of money to consider too (remember 2008? That was not a lack of money, but a lack of trust that disturbed the flow of money), but they are really minor in the big picture.

To sum it up, BitBay's peg must be classified as a trust based peg, and has chosen the safer version -a soft peg. The rest is micro economics -supply and demand. The revolutionary concept is that it is decentralized! Every other peg is centralized, i.e., controlled and/or dependent on one person or group of persons. If he/they fail, the peg fails! What happens in a pegged coin that relies on custodians if the custodians don't think being a custodian is the best investment alternative for them? Those are the kind of problems we have eliminated by going decentralized.

[sidhujag]

https://blog.ethereum.org/2014/11/11/search-stable-cryptocurrency/

i think your system is a combination of "Seignorage Shares" and "SchellingDollar" not really a prediction market as in  predicting price and incentivesizing those who are closest... more about it here https://www.reddit.com/r/ethereum/comments/30f98i/introducing_edollar_the_ultimate_stablecoin_built/

question is how is it similar/different to these approaches? I know bitusd is probably the best peg currently working.. although its not ideal because it relies on "delegates" and has hardcoded rules for 10% bands where price isn't allowed to be traded to avoid.. a better approach to bitusd is the CFD + Schellingcoin as described here: https://blog.ethereum.org/2014/03/28/schellingcoin-a-minimal-trust-universal-data-feed/

Since we don't have any paper to know what your approach is its hard to know how it compares but I think the way you are describing it, it should be pretty similar to the last one.

[dzimbeck]

Munti, thanks for that awesome history and explanation of pegs. Every time you talk about economy I learn something.

And yeah it would be nice to have the resources Vitalik had. However I've also been advised that venture capital can be a "Golden cage". There are other devs I chat with from time to time like Sidhujag and we've mused about collaborating before however it's hard when all the good deevs are committed to their own projects.

[LostLady]

https://blog.ethereum.org/2014/11/11/search-stable-cryptocurrency/

i think your system is a combination of "Seignorage Shares" and "SchellingDollar" not really a prediction market as in  predicting price and incentivesizing those who are closest... more about it here https://www.reddit.com/r/ethereum/comments/30f98i/introducing_edollar_the_ultimate_stablecoin_built/

question is how is it similar/different to these approaches? I know bitusd is probably the best peg currently working.. although its not ideal because it relies on "delegates" and has hardcoded rules for 10% bands where price isn't allowed to be traded to avoid.. a better approach to bitusd is the CFD + Schellingcoin as described here: https://blog.ethereum.org/2014/03/28/schellingcoin-a-minimal-trust-universal-data-feed/

Since we don't have any paper to know what your approach is its hard to know how it compares but I think the way you are describing it, it should be pretty similar to the last one.

Hello! Sidhujag! Do you own any Bay? I think you and David would make a great team, if you have some time on your hands after working on Syscoin

[LostLady]

Any time frames or road maps?

[dzimbeck]

Any time frames or road maps?

Yeah I'm working on an update that I hope to have by at least the end of the month.

[disconnectme]

Any time frames or road maps?

Yeah I'm working on an update that I hope to have by at least the end of the month.

I hope to see the timeline for this project, a lot have been said of this project and it is time to fully her potential and lets see real world progress

[cryptohunter]

Any time frames or road maps?

Yeah I'm working on an update that I hope to have by at least the end of the month.

I hope to see the timeline for this project, a lot have been said of this project and it is time to fully her potential and lets see real world progress

Any updates to discuss on the main section yet> I think keeping discussion of bay in the main forum is key to attracting new attention and interest.

[stereotype]

To sum it up, BitBay's peg must be classified as a trust based peg, and has chosen the safer version -a soft peg. The rest is micro economics -supply and demand. The revolutionary concept is that it is decentralized! Every other peg is centralized, i.e., controlled and/or dependent on one person or group of persons. If he/they fail, the peg fails!

For me, a peg becomes the all encompassing reason a given instrument exists, meaning, it becomes so important, if the given peg fails, all confidence in the underlying instrument drains away fast. And then whatever news/updates/current development going on at that time becomes very secondary, to re-instating the peg. And even if its achieved, that confidence takes a while to return, if ever.

Interested to see how this pans out.   

[RJF19]

To sum it up, BitBay's peg must be classified as a trust based peg, and has chosen the safer version -a soft peg. The rest is micro economics -supply and demand. The revolutionary concept is that it is decentralized! Every other peg is centralized, i.e., controlled and/or dependent on one person or group of persons. If he/they fail, the peg fails!

For me, a peg becomes the all encompassing reason a given instrument exists, meaning, it becomes so important, if the given peg fails, all confidence in the underlying instrument drains away fast. And then whatever news/updates/current development going on at that time becomes very secondary, to re-instating the peg. And even if its achieved, that confidence takes a while to return, if ever.

Interested to see how this pans out.  

As am I. And, I agree with you on the all encompassing importance of the peg with one caveat, the other functions are just as important if they are to be used in the real world. If a coin is "pegged" but the functions it was designed for fail, what will happen? Say Bitbay becomes a big player in smart contracts and, it is pegged at 1 USD per coin. Now lets say the contract side is found to have a serious flaw that cannot be corrected destroying it's utility. What happens? Does the community continue to vote to maintain the peg or, do they decide to sell and run?

I don't think you can completely depend on the peg feature to maintain value if the rest of the system becomes useless. While I do agree that loosing the peg would create a situation that may not be recoverable, I also believe that the failure of the underlying technology may be even worse. It's a Ying/Yang relationship.

This why I don't mind whatever time it takes to develope and prove the coins functions prior to pegging even if there are others doing the same thing. The rest is marketing...

[penelopen]

as symbolic support for this project, i used BAY in a couple of screenshots of my new Android app 

preview:
https://muchbtc.trade/image/sc.big.1.jpg

the app is this: https://play.google.com/store/apps/details?id=trade.muchbtc.app
it can follow market prices and estimate total portfolio value 

[dzimbeck]

as symbolic support for this project, i used BAY in a couple of screenshots of my new Android app 

preview:


the app is this: https://play.google.com/store/apps/details?id=trade.muchbtc.app
it can follow market prices and estimate total portfolio value 

Awesome! Thanks for thinking of us

[dzimbeck]

To sum it up, BitBay's peg must be classified as a trust based peg, and has chosen the safer version -a soft peg. The rest is micro economics -supply and demand. The revolutionary concept is that it is decentralized! Every other peg is centralized, i.e., controlled and/or dependent on one person or group of persons. If he/they fail, the peg fails!

For me, a peg becomes the all encompassing reason a given instrument exists, meaning, it becomes so important, if the given peg fails, all confidence in the underlying instrument drains away fast. And then whatever news/updates/current development going on at that time becomes very secondary, to re-instating the peg. And even if its achieved, that confidence takes a while to return, if ever.

Interested to see how this pans out.   

That's exactly why the solution needs to be decentralized. BitUSD relies on the success of BitShares, NuBits on custodians, Tether on backers

Nobody who is serious about finance should vest too much in those

It must be decentralized and that's what we are making. Bitbay won't require 3rd party intervention, just miner votes. I just wish more of crypto knew what is about to happen here. I think there are alot of silent eyes on this thread.

[Karartma1]

To sum it up, BitBay's peg must be classified as a trust based peg, and has chosen the safer version -a soft peg. The rest is micro economics -supply and demand. The revolutionary concept is that it is decentralized! Every other peg is centralized, i.e., controlled and/or dependent on one person or group of persons. If he/they fail, the peg fails!

For me, a peg becomes the all encompassing reason a given instrument exists, meaning, it becomes so important, if the given peg fails, all confidence in the underlying instrument drains away fast. And then whatever news/updates/current development going on at that time becomes very secondary, to re-instating the peg. And even if its achieved, that confidence takes a while to return, if ever.

Interested to see how this pans out.   

That's exactly why the solution needs to be decentralized. BitUSD relies on the success of BitShares, NuBits on custodians, Tether on backers

Nobody who is serious about finance should vest too much in those

It must be decentralized and that's what we are making. Bitbay won't require 3rd party intervention, just miner votes. I just wish more of crypto knew what is about to happen here. I think there are alot of silent eyes on this thread.

There are indeed. I wonder if you would start promoting it better via bounties for marketing, campaigns and stuff like that. I feel there's a need of some advertising for this coin. This is what you need, some fuel