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bitshares / bsips

BitShares Improvement Proposals and Protocols. These technical documents describe the process of updating and improving the BitShares blockchain and technical ecosystem.
https://bitshares.github.io
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New BSIP: Flag to prevent anyone but the issuer from placing sell orders #148

Open xeroc opened 5 years ago

xeroc commented 5 years ago 
BSIP: TBD
Title: Flag to prevent anyone but the issuer from placing sell orders
Authors: Blockchain Projects BV
Status: Draft
Type: Protocol
Created: 2019-02-22
Discussion: https://github.com/bitshares/bitshares-core/pull/1612

Abstract

The proposed change adds another flag and permission to assets that, when toggled, will limit market orders so that only the issuer will be allowed to place sell orders for the asset.

Motivation

For crowd-sales that come with different stages and different sell prices, it is crucial to prevent investors from the first round to sell the token during the second round as this reduces the outcome of the investment rounds for the business and results in unwarranted profits for the initial investors.

Rational

Some businesses that seek investment require a market to be closed during the funding period but still need to allow people to buy the token directly from the business. If the business decides to change the pricing during the investment period, we need to ensure only the issue can sell tokens.

Specifications

We introduce a new flag for asset_issuer_permission_flags with the name only_issuer_limit_orders_allowed. This flag will be tested in the evaluator of limit_order_create_operation which is the only operation that can place new sell orders for a token.

Discussion

We would like to engage in discussion to see if it might make sense to setup a separate whitelist for market participate instead of adding a simple flag.

A first pull request against bitshares-core is available here.

Summary for Shareholders

This proposal is particular useful for businesses that seek funding through the BitShares platform but require multiple stages for pricing. To close markets but still allow the issuer to sell his tokens on the market, we need this proposal to be added to the blockchain.

Copyright

Public Domain

pmconrad commented 5 years ago

ISTR that there was a core issue and/or bsip request for a feature to "shut down" an asset and/or its markets. Can't find it right now, does anyone remember? This here is similar, it might be possible to expand the scope a little.

dnotestein commented 5 years ago

You may be referring to this one I wrote: https://github.com/bitshares/bitshares-core/issues/1033

pmconrad commented 5 years ago

Ah, yes. Thanks Dan!

grctest commented 4 years ago

If I buy an asset with this flag, couldn't I create a smartcoin using this asset as backing, then sell this?