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founding members acting as oracles is the whole problem. this is centralised trust and it’s ripe for abuse. that the minting is recorded is irrelevant - there’s
by supermatt 7y ago
founding members acting as oracles is the whole problem. this is centralised trust and it’s ripe for abuse. that the minting is recorded is irrelevant - there’s no guarantee the backing funds exist, much in the same way a traditional bank lends money that doesn’t exist.
what if this were to become the universal credit? it’s not impossible given the clout of facebook. placing trust in a few “founding corporations” is not the banking model that we should be pursuing for the future.
- riffraff 7y agoThe oracle acts as a verification that the statement "Jane put 1M USD in fund X" is true, but anyone else can verify the data too. The fund can be regulated normally, and will be subject to existing transparency rules on reporting its net assets. Since any observer can verify when an oracle is lying, there is a disincentive in doing that (also, the oracles are sitting on a perpetuous revenue stream if they don't fuck up, and have no interest in scaring people). Sure, the founders can change the rules as they go forward, but at the moment there is no reason to think they would create money ex aere just to cash a quick buck killing the system.