Perhaps I’m missing something, but I really don’t see the problem to leave XORA as-is. I think there may be too much emphasis on XORA for short term market speculation, and not on the ultimate utility of shuffling.
Does the current market dry up at the cost of 1 NXT per XORA: ABSOLUTELY YES! You’d have to be crazy to exchange at a 1-to-1 rate RIGHT NOW. But, when/if XORA shuffling is functioning as intended, the price becomes IRRELEVANT. The most important economic factors are exchange VOLUME and price STABILITY.
Let me elaborate.
XORA wishes to position itself as the prominent currency for shuffling NXT. Well, what are the most important factors for a shuffler?
Perspective of a shuffle user:
(1) I have NXT
(2) I want to anonymize my NXT
(3) I want to do so in a timely manner
(4) I want to minimize my cost
(5) I want it to be easy
If XORA is to be used for this purpose:
(A) Needs enough shuffling participants so shuffling can provide true anonymity.
(B) NXT<->XORA exchange needs enough volume to cycle in and out of the desired currency within a timely manner.
(C) Shuffle software (plugin?) must be EASY TO USE.
With the currency exchange booth providing no lower option than 1 NXT per XORA, that becomes (for all intents and purposes) an unmoving price peg for a LONG TIME. Trades may still occur out of the exchange booth (with escrow or InstantDEX, for instance) if a user wishes to sacrifice some value for a faster turnaround time.
In my opinion, leaving XORA with 8 decimal places (and therefore limiting exchange rate as 1 NXT) should be considered with all of the above factors as a NET BENEFIT for the utility of shuffling, and a HUGE BOON to all XORA project supporters!
(Now, there are still some unresolved issues. XORA will likely have much more short term exchange SELLERS than BUYERS and that could creates an unbalanced economic cycling. Shuffling bounties may be able to encourage more XORA buyers/holders since it would produce a stable, positive return in XORA).
Great post Jack, thanks so much for your input in trying to navigate through this situation!!!
Yes, having 1:1 with NXT would make the shuffle aspects of ORA a lot more robust from the get-go, and that's very appealing.
Can we mitigate the effects of the other consequences, the massive windfall and potential perception problems?
Thanks! I do acknowledge your concerns, but over the last couple of days I began to see this 'mistake' as a potentially positive development for XORA's shuffling utility. I just hope I've been able to express my thoughts clearly enough that it all comes together to create a cohesive picture. There really are a lot of reasons why 1:1 with NXT is quite a good functional choice.
As far as the windfall perception, I've personally tried to disregard that factor and focus instead on what properties XORA needs to be successful at the intended goal of shuffling, and it really does seem to me that a 1:1 ratio just "makes the most sense".
But the windfall perception can be damning.
I guess I'd focus first on WHY this ratio was chosen (even though ultimately it started with an honest mistake), and why 1:1 helps XORA become a good choice for shuffling. If more parties can add to the rationale I started above, then perhaps a more cohesive reasoning for this decision can be formed.
And then, I'd do something like this:
* Distribute remaining XORA as previously discussed
* A new giveaway, sponsored by big holders (NOT TREASURY FUNDS, and myself included).
* Move all remaining treasury funds to a trusted third party escrow (ie: Poloniex) with occasional distributions to cover bounties (ask for a N-of-M signees for any required releases).
Thanks Jack! I'm going to meditate on the situation, and wait for further input and opinions from the community. I'm in two minds.
I agree that one way to mitigate the 'windfall' problem would be to organise another giveaway, and maybe get the big XORA holders to donate some XORA to the NXT dev team & foundation etc. That would generate more support for ORA, and do something really useful for NXT ongoing funding problems.
Also, from watching the NXT community for a long while now it is obvious to most observers that part of NXT's success to date is partly explained by having committed whales funding needed tasks & people. If we stick with XORA then we would have made people very wealthy, BUT ONLY IF ORA::SHUFFLE WORKS, and that's a very similar situation to the original 73 NXT IPO people: 'You might end up rich, but only if NXT succeeds', and that obviously encouraged enough of them to get involved to get NXT where it is today. ORA *might* experience the same 'motivation' effect.
Time to meditate and see what the subconscious thinks!
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Topic: [Ann] New final, ORA and MIC assets Redemption Process - last call (Read 42819 times)