Auto convert incentives to locked SFT?

General Discussion
#1

Here’s my thought for discussion:

When you Lock in your SFT, you should have the option to automatically convert the incentives into more SFT, the same way you can automatically reinvest dividends into the underlying stock through a brokerage account.

How it’d work:

  • By selecting "automatically convert my SFX incentives into “SFT” at the time that you lock in your original SFT, all future SFX incentives do an open market buy, with the new SFT being sent to the wallet and getting locked in.

Potential benefits:

  • Devs can take an extra “service fee” on this type of transaction.
  • Keeps upward support on the price of SFT
  • Keeps the supply of SFX in the hands of people that want to spend it, and avoids having it lost/forgotten about in people’s wallets. Might help stabilize the SFX price?

Potential drawbacks:

  • Only possible if there is a SFT/SFX direct pairing, with volume.
  • Does not directly incentive people to spent SFX
  • Network congestion.

Thoughts?

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#2

I think this is a must have; but not on network level. I can see an application that is auto claiming your incentive and then sending it to an exchange that trades them in for SFT. That can easily be done by a third party provider; however, I don’t forsee current core developers making that kind of contribution.

That being said; if there are entities out there willing to contribute proper code to this kind of development, then obviously it would be better taken into consideration.

So, from my point of view this is a worthy aspect of some exchange service: even you can send your SFT to an exchange, that offers this kind of convenience for you. Locking you in, and auto rebuying SFT with your earned out SFX. Sort of like in a custodial arrangement.

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#3

Nice idea,

One of the last milestones on the roadmap is a decentralized SFX/SFT exchange. Maybe your function could get implemented through this gateway. The implementation through a third party sounds interesting, but how would that work? The SFX get distributed to your address and nobody should ever give their keys out of their hands. So how would a third party be able to perform a transaction for you? Also, automatically fee collecting was considered bringing too much traffic for the network, as far as I remember. How would your proposal be different then?

#4

I agree, if so it should be possible to make it at the safex blockchain or partnered with an other anonymous blockchain exchange. Otherwise the moment you make the automatically convert transaction the exchange could calculate how much SFT you have locked in based on the amount of SFX you got that year, which would compromise privacy to much in my eyes…

#5

It’s like neo and their gas: you deposit your sft to the exchange and you get sfx out of it directly on your exchange account.

1 Like
#6

I agree, I don’t like the custodial arrangement idea. I do like some sort of ‘atomic swap’ capability though between token and cash. I wonder whether that is possible or too much load on the protocol.

#7

Although, now I think about that, an atomic swap maybe isn’t possible. Given that there is a fixed number of tokens which will all be issued. I’m now going to contradict myself and say it can only be done with a custodial arrangement.

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