Quote from: Polvos on April 28, 2015, 09:16:20 PM

It's curious. I'm, at the same time, Nushareholder and criticizing all these subjects but, in my opinion, transparency in this development must be fundamental. I hope you understand me.

We appreciate the questions! We feel it is important that we are able to articulate and defend the design decisions we've chosen. If we couldn't, prospective bidders would not place much credibility in our efforts.

Quote from: Polvos on April 28, 2015, 09:16:20 PM

Aren't custodians risking bitcoins too in the pair BKC/BTC offered in the exchange? If so, custodians could lose both and, as hackings/adminrunnings occur, less and less custodians will be willing to request a grant. Something similar happened in nubits/nushares and, the only way to provide confidence, was to compensate custodians diluting Nushare holders. Why can't this happen here?

Custodians will not risk any of their own BTC in this design. In contrast to NuBits, where liquidity-provider custodians must place buy and sell walls, BlockCredit custodians will only place sell-side walls. A custodian has no obligation to purchase back BlockCredits they have sold.

A relevant section from the design document:

Quote

While BlockCredits are the same as NuBits to the code base, they have a completely different purpose. They are solely for use as transaction fees and are not intended for general trade as NuBits are. Accordingly, a peg for BlockCredits will not be maintained. They are comparable to postage stamps in many ways. They are sold with the promise you will receive one US dollar worth of transactions on the B&C Exchange. Just as you wouldn't expect to be able to sell postage stamps to a third party at face value, there shouldn't be an expectation that BlockCredits can be sold for one US dollar, although a resale market may appear. BlockCredits should only be purchased with the intent of consuming them to pay transaction fees on the B&C Exchange.

Let's pretend you have been elected as a BlockCredit custodian by shareholders after you have solicited their votes. Here would be a sample timeline of events from the perspective of shareholders:

Day 1: Polvos is elected BlockCredit custodian. Shareholders vote to provide him with 5000 BKC.
Day 2-7: Polvos sells his 5000 BKC in small increments for BTC. At the end of the 7th day he has 20.000 BTC. He announces that he will send a dividend to anyone who was holding BlockShares at the end of Day 7.
Day 8: Polvos logs into his BlockShares client. He selects the "Distribute Dividends" button, inputs "23:59 UTC Day 7" for a snapshot date, and enters in 20.000 BTC. He clicks "send". All shareholders who are eligible to receive Bitcoin dividends will then receive them, provided they are eligible for a dividend that is greater than the transaction fee required to send it.