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The Supply of Tethers at 27 November 2017 is $675M

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Re: The Supply of Tethers at 27 November 2017 is $675M

#21

Post by wslh »

jstanley wrote: post #17
wslh wrote: post #11

Earlier quoted context omitted.

You answered the question yourself below but you cannot peg a currency to another if you don't have the reserves, less with cryptocurrencies where you don't have a central bank who can rescue you. This is economy 101 not an opinion. Fractional reserves can work in fiat currencies but not in the cryptocurrency world. For more information you can check research about this topic: https://scholar.google.com.ar/scholar?hl…

It's a different set of tradeoffs compared to Tether. You gain the risk of insolvency, but you lose the risk of corruption.

Are you saying this to the average "non-professional" investor? When people read about a cryptocurrency that represents fiat money they think about something simple and they assume you have the money to convert back and forth.

The first page clearly says "A decentralized cryptocurrency pegged the U.S. dollar". This message is a scam, plain scam, you don't need to bring the SEC to realized that. After reviewing all this thread I flagged the top comment.

Re: The Supply of Tethers at 27 November 2017 is $675M

#22

Post by jatsign »

jstanley wrote: post #20
jatsign wrote: post #13

Earlier quoted context omitted.

1) Contract owner CANNOT withdraw ETH. 2) True. The Price Oracle is a separate contract that I want to modify to be more like Ark's superdelegate method - a certain number of delegates stake Unum and get to control the price oracle, and in return get to collect the fees from the Unum contract. There's a bit of a chicken-and-egg problem with that for now - it requires people who are interested in collecting a part of…

If I'm interested in becoming one of your price oracle delegates, what do I do?

For now that's just a plan. Assuming people become interested in, and start using Unum, I'll post more about it on the blog.

For now, I'd really appreciate any help in getting people to take a look at Unum.

https://www.medium.com/unum

Re: The Supply of Tethers at 27 November 2017 is $675M

#23

Post by jstanley »

wslh wrote: post #21
jstanley wrote: post #17

Earlier quoted context omitted.

It's a different set of tradeoffs compared to Tether. You gain the risk of insolvency, but you lose the risk of corruption.

Are you saying this to the average "non-professional" investor? When people read about a cryptocurrency that represents fiat money they think about something simple and they assume you have the money to convert back and forth. The first page clearly says "A decentralized cryptocurrency pegged the U.S. dollar". This message is a scam, plain scam, you don't need to bring the SEC to realized that. After reviewing all th…

I'm not saying it to any investor, I'm arguing it from a purely disinterested perspective.

I think it's a fascinating project.

That the SEC thinks risk of insolvency is more of a problem than risk of corruption is irrelevant.

Re: The Supply of Tethers at 27 November 2017 is $675M

#24

Post by Ruphin »

I think the most promising project to create a decentralized stablecoin is MakerDAO's 'Dai': https://github.com/makerdao/docs/blob/master/Dai.md

I have been reviewing the mechanics and I haven't found any major weakness in the system. I'm really curious to see how it performs once released.

Disclaimer: I am not affiliated with or have any position in MakerDAO.

Re: The Supply of Tethers at 27 November 2017 is $675M

#25

Post by RileyJames »

jatsign wrote: post #13
brepl wrote: post #12

Earlier quoted context omitted.

> The fatal flaw in Tether is that you have to trust the company behind it. How is Unum any different? Looking at the contract: 1. Contract owner can withdraw the ETH balance at any time. 2. Contract owner can control the Oracle. 3. If there's not enough ETH balance in the contract, you can't change your unum tokens back to ETH.

1) Contract owner CANNOT withdraw ETH. 2) True. The Price Oracle is a separate contract that I want to modify to be more like Ark's superdelegate method - a certain number of delegates stake Unum and get to control the price oracle, and in return get to collect the fees from the Unum contract. There's a bit of a chicken-and-egg problem with that for now - it requires people who are interested in collecting a part of…

Very interesting. Do you have any further info on 'Ark's superdelegate method'? I only found yourself mentioning it via google. I'm interested in how oracles / off-chain data can be decentralised.

Re: The Supply of Tethers at 27 November 2017 is $675M

#26

Post by jatsign »

RileyJames wrote: post #25
jatsign wrote: post #13

Earlier quoted context omitted.

1) Contract owner CANNOT withdraw ETH. 2) True. The Price Oracle is a separate contract that I want to modify to be more like Ark's superdelegate method - a certain number of delegates stake Unum and get to control the price oracle, and in return get to collect the fees from the Unum contract. There's a bit of a chicken-and-egg problem with that for now - it requires people who are interested in collecting a part of…

Very interesting. Do you have any further info on 'Ark's superdelegate method'? I only found yourself mentioning it via google. I'm interested in how oracles / off-chain data can be decentralised.

This may explain: https://ark-guide.readme.io/v1.0/docs/what-are-delegates

There are a few currencies doing delegate so I may have confused "super delegates" with another currency.

Re: The Supply of Tethers at 27 November 2017 is $675M

#27

Post by edf13 »

jatsign wrote: post #8
Mouse47 wrote: post #7

Earlier quoted context omitted.

Stupid question - how do you peg your currency to the dollar if you're holding ETH, etc?

When you buy Unum, the smart contract looks up the price of ETH and gives you a dollar equivalent of Unum. So if you send in $400 worth of ETH, you get 400 Unum. Then, a month from now, if you want to sell Unum and get ETH, maybe the price of ETH is $500. So you send in your 400 Unum, and get .8 ETH.

But isn't this just a fractional reserves in this case?

How will you have the reserves to pay out everyone who wishes to cash out all of their Unum 1 month later if the price of ETH as dropped by 50%? Where will you have the funds to do so?

Edit: I see from your website you have a penalty in place for when your reserves drop below Unums in circulation - clever play! (https://unum.one/#!/learn#reserve-deficit-sell-penalty)

Re: The Supply of Tethers at 27 November 2017 is $675M

#28

Post by rothbardrand »

There are lots of reasons to be concerned about Tethers, formost of which is that they are centralized.

But with the massive on boarding of new customers (coinbase releases customer stats regularly and are having record new accounts created) ... you would expect that the number of tethers in circulation would go up as some people decide to adopt the tether for whatever purpose and more need to be created.

Not quite sure whether they are all backed or not. (and I don't know how to tell at this point.)

Re: The Supply of Tethers at 27 November 2017 is $675M

#29

Post by baby »

jatsign wrote: post #13
brepl wrote: post #12

Earlier quoted context omitted.

> The fatal flaw in Tether is that you have to trust the company behind it. How is Unum any different? Looking at the contract: 1. Contract owner can withdraw the ETH balance at any time. 2. Contract owner can control the Oracle. 3. If there's not enough ETH balance in the contract, you can't change your unum tokens back to ETH.

1) Contract owner CANNOT withdraw ETH. 2) True. The Price Oracle is a separate contract that I want to modify to be more like Ark's superdelegate method - a certain number of delegates stake Unum and get to control the price oracle, and in return get to collect the fees from the Unum contract. There's a bit of a chicken-and-egg problem with that for now - it requires people who are interested in collecting a part of…

2) have you looked into towncrier?

Re: The Supply of Tethers at 27 November 2017 is $675M

#30

Post by BoiledCabbage »

baby wrote: post #29
jatsign wrote: post #13

Earlier quoted context omitted.

1) Contract owner CANNOT withdraw ETH. 2) True. The Price Oracle is a separate contract that I want to modify to be more like Ark's superdelegate method - a certain number of delegates stake Unum and get to control the price oracle, and in return get to collect the fees from the Unum contract. There's a bit of a chicken-and-egg problem with that for now - it requires people who are interested in collecting a part of…

2) have you looked into towncrier?

Everyone and their mother is starting an alt-coin.

My next-door neighbor's sister's hairdresser has started one as well. Every 10th coin you mine, you get 15% off your next appointment. Have you looked into that one yet?

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