Aug 31, 2018 · 1 min read
Hi! Thanks for the article, I enjoyed the analysis borrowed from fiat bonds and cash.
I’m wondering: what is the qualitative difference between introducing an illiquid asset type for staking (BondCoin), vs. just making stakes illiquid by locking them up in smart contracts? From my understanding, BondCoin doesn’t seem very decoupled from CashCoin: the total supply of BondCoins + CashCoins must be a constant, and the only way to liquidate BondCoins is to convert them into CashCoins.
On another note, I think the last diagram could be clearer if the top and bottom x-axes grew in the same direction, since this would show the negative coupling of BondCoin and CashCoin demand.
