steepdawn on Nostr: > The user custodies a bearer asset token. No. The bearer asset token (eHash) is ...
> The user custodies a bearer asset token.
No. The bearer asset token (eHash) is minted by the mint (=pool). And yes, that balance accrues, then more shares the miner submits. But the token
But these tokens remain in custody with the pool - until the miner withdraws them. Then, and only then, he can trade them.
Up until then (when he eventually withdraws the token and therefore takes ownership of them) he can only trade claims to the tokens. Hence my comment "he can trade IOUs of IOUs".
Now the core question: Why would anyone trade for these claims to the token (who are then claims to actual Bitcoin)???
Firstly, the miner would have to prove to the buyer that he is entitled to these token that are currently accruing with the pool. So a) there has to be some record, some ledger (account) at the pool level to keep track of how is owned what. And b) the miner has to proove to/convince the buyer that he is actually the person who is owed this token balance. (How?)
Secondly, even if we assume the miner were to find a buyer for these IOUs of IOUs, they are less worth than actual bitcoin; they'd trade for 90cents on the dollar. Why on earth would any miner sell his bitcoin at a discount?
"Need for immediate liquidity" you say???? Are to you telling me there are miners how have intra-day liquidity requirements, such that they would be forced to sell at a discount??
Because even now, any miner/seller can already get payouts on a daily basis via Lightning (https://academy.braiins.com/en/braiins-pool/faqs/rewards/#are-there-any-limits-for-lightning-payouts)! And keep 100% of his bitcoin, instead of 90% (or whatever the discount would be at which he can sell). Or every ~1.5day if they use BOLT12 payouts at OCEAN.
Bottom line - I still dont see why this construct would make sense
No. The bearer asset token (eHash) is minted by the mint (=pool). And yes, that balance accrues, then more shares the miner submits. But the token
But these tokens remain in custody with the pool - until the miner withdraws them. Then, and only then, he can trade them.
Up until then (when he eventually withdraws the token and therefore takes ownership of them) he can only trade claims to the tokens. Hence my comment "he can trade IOUs of IOUs".
Now the core question: Why would anyone trade for these claims to the token (who are then claims to actual Bitcoin)???
Firstly, the miner would have to prove to the buyer that he is entitled to these token that are currently accruing with the pool. So a) there has to be some record, some ledger (account) at the pool level to keep track of how is owned what. And b) the miner has to proove to/convince the buyer that he is actually the person who is owed this token balance. (How?)
Secondly, even if we assume the miner were to find a buyer for these IOUs of IOUs, they are less worth than actual bitcoin; they'd trade for 90cents on the dollar. Why on earth would any miner sell his bitcoin at a discount?
"Need for immediate liquidity" you say???? Are to you telling me there are miners how have intra-day liquidity requirements, such that they would be forced to sell at a discount??
Because even now, any miner/seller can already get payouts on a daily basis via Lightning (https://academy.braiins.com/en/braiins-pool/faqs/rewards/#are-there-any-limits-for-lightning-payouts)! And keep 100% of his bitcoin, instead of 90% (or whatever the discount would be at which he can sell). Or every ~1.5day if they use BOLT12 payouts at OCEAN.
Bottom line - I still dont see why this construct would make sense