Dragon wrote: ↑2019-06-26, 15:21The reserve is locked-in upon depositing. Hence, reserves contracted in EUR will stay in EUR, BTC will stay in BTC.
To facilitate fast payments, it is important to have reserves in several fiats, cryptos and jurisdictions. Currently we accept EUR, USD and BTC, and plan to add more.
Weekly, the current value of reserves will be calculated based on the exchange rate of the reserves vs. DM.
The circulation of DM will be kept at 10x the value of reserves, so if BTC appreciates in value, the increase will end up being distributed to all the holders of DM. This is a manual process and may not happen instantly, because the reserve ratio is affected not only by changes in exchange rate, but also deposits and withdrawals and creation and destruction of DM.
I'm also including Syksy on this to get his opinion.
As I think the goal is to have 1 DM = 1 Euro, and the current DM circulation, values, etc. are based on this, maybe we don't want to introduce the additional fluctuation of crypto pricing so early in the game.
For something like this BTC rise, that can be seen as growth in DM circulation. However, during this same time period essentially all altcoins have lost value relative to BTC (in both satoshi and fiat pricing). So if Syksy and I had used, say, ETH or XRP, then DM circulation would go down and I am guessing everyone would lose DM?
For crypto reserve management down the road with more users, particularly unknown ones, perhaps it will be best to use a smart contract of some sort that locks the crypto and then uses a stable coin to ensure that the Euro value is maintained.
Actually, to facilitate fast payment, there are multiple stable coins beyond just Tether that work faster and more cheaply than BTC, such as Winklevoss Gemini Dollars. I believe Circle/Poloniex also has their own stable coin (and they are Goldman Sachs backed I believe).
I don't know, the fact that the DM circulation can drop due to reasons outside of deposits and withdrawals or gameplay seems like it could open the risk of someone getting say using an alt like EOS or even XMR that has dropped over 20% in satoshi terms overnight, and I am not sure how that impacts the DM markets.