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tulo

Issue fixed amount IOUs and keep transaction fees.

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I was wondering how to achieve together:

  • 1) Issue a proven fixed amount of IOUs
  • 2) Keep a transfer fee on those IOUs

For 1) there is a well known trick of issuing from cold wallet to hot wallet, then disable master key blabla to make impossible for the cold wallet to generate more IOUs. But setting the Ripple transfer fee will only result in "burning" some IOUs over time. Do you have any idea on how to keep the fees, in terms of the transfer fee going to the hot wallet, or something equivalent, where the owner of the IOUs is the beneficiary of the fees?

I think with rippling and quality io-out I can achieve this, but it's too complex for my mind and the documentation of quality in-out is not so detailed :) 

I'll think more into this because it's a cool problem.

EDIT: 50 XRP bounty for a working and detailed answer

EDIT2: only a few here I think master those complex features: @ripplerm, @Sukrim, @donch

Edited by tulo

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Just now, RafOlP said:

If you just set the transfer fee everytime it changes hands the fee is applied.

https://ripple.com/build/transactions/#transferrate

Yes, but the fee, basically "burns" IOUs, is like redeeming the fee to the issuer. But since I'm not anymore in control of the issuer (the cold wallet), is like burning IOUs only. I want the amount of IOUs to not decrease and the fee "arriving" to the hot wallet. 

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2 minutes ago, tulo said:

Yes, but the fee, basically "burns" IOUs, is like redeeming the fee to the issuer. But since I'm not anymore in control of the issuer (the cold wallet), is like burning IOUs only. I want the amount of IOUs to not decrease and the fee "arriving" to the hot wallet. 

Ah, got it, sorry.

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Question: What are the benifits from IOU's besides relocate risk from volatility to counterparty-risk ? (Which is a clear benifit)

 

Edited by Essq

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7 minutes ago, Essq said:

Question: What are the benifits for IOU's besides relocate risk from volatility to counterparty-risk ?

That you can issue and trade on a decentralized exchange some tokens which are backed by something. Flight miles, cryptos, supermarket points...

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6 minutes ago, tulo said:

That you can issue and trade on a decentralized exchange some tokens which are backed by something. Flight miles, cryptos, supermarket points...

Maybe it's a dumb idea:

Why not use escrow to empty the cold wallet ? You create escrow for the next 100years, every 2 weeks it sends the cold wallet IOU (coming from fees) to the hot wallet. You would have to create ~2500escrow (twice a month for 100years).

Could it work ? Or it doesn't make any sense ?

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1 minute ago, heartbit_io said:

Maybe it's a dumb idea:

Why not use escrow to empty the cold wallet ? You create escrow for the next 100years, every 2 weeks it sends the cold wallet IOU (coming from fees) to the hot wallet. You would have to create ~2500escrow (twice a month for 100years).

Could it work ? Or it doesn't make any sense ?

Nope, because you don't know in advance the amount of the fees, so you can't create escrows, because you need to decide the value of the escrow. And most important, escrow can only be used with XRP ;)

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3 minutes ago, tulo said:

Nope, because you don't know in advance the amount of the fees, so you can't create escrows, because you need to decide the value of the escrow. And most important, escrow can only be used with XRP ;)

Could ethereum smart contract do the job ? :P

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11 minutes ago, heartbit_io said:

Another idea, just sign the needed transactions. And send it when you need to empty the cold wallet ?

Nope, because when you use the set regular key, the transactions need to be signed with the new secret, which is unknown. The point is to prove that none has access to the cold wallet, otherwise I could also issue more IOUs.

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I don't think this can be done. The idea that the issues keeps control over the issuing account seems to have been an initial assumption which is now hard to change or work around. Also the owner of the IOU is the issuing account from the network's perspective...

It might be worth a feature proposal to ask for a more explicit way to handle transaction fees of IOUs, but I'm not so sure if there are any innovations coming that are not Bitlicense related... :-/

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1 minute ago, Sukrim said:

I don't think this can be done. The idea that the issues keeps control over the issuing account seems to have been an initial assumption which is now hard to change or work around. Also the owner of the IOU is the issuing account from the network's perspective...

It might be worth a feature proposal to ask for a more explicit way to handle transaction fees of IOUs, but I'm not so sure if there are any innovations coming that are not Bitlicense related... :-/

Well, my actual idea is this, but I don't know if it works:

  • Cold wallet issue the IOUs, let's call it IDK
  • Hot wallet extend trust line for IDK to cold wallet with quality in-out equivalent to the fee
  • Cold wallet sends the IDK and then disables all the stuff...
  • Hot wallet issues it's own IDK
  • Hot wallet puts rippling on for IDK

So now trading hot wallet IDK is equivalent to trading cold wallet IDK, but with a quality in-out in between...

I need to study the details but I think there is a trick to obtain this.

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@tulo quality in/out matters, only if a payment ripples through a wallet that has trust lines to 2+ issuers of the same IOU. I.e. it might work if you would send IDK from the 3rd wallet to cold wallet (rippling through hot wallet). 

Buying/selling does not incur quality in/out fees. 

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