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693 sats \ 4 replies \ @freetx 21 Jan \ on: Fedimint is Self-Custodial ecash
Frac-Reserve bitcoin is eCash / Fedimints biggest and most realistic risk. (ie. mint operators will print themselves their own tokens and spend within ecosystem. Such situation is undetectable afaik)
What is the current fedimint concept for how users would audit the issued eCash tokens?
You might be interested in this: A Proof of Liabilities Scheme for Ecash Mints
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You can ask for an audit from the mint. Still trusting then but it's available.
Most surefire way would be to enact a bank run.
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Having an option in wallets to "auto cashout tokens after X hours/days" would help protect individual users.
However, this wouldn't solve anything for the ecosystem of vendors. Suppose that mint becomes insolvent at 12:00....there could still be frac-reserved eCash being presented to Vendors, which they would have no way to check. (unless of course they immediately withdrew presented eCash into LN, but that defeats the purpose)
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I also find it suspicious this Fedimint stuff is getting a ton of attention just as the SEC approves Bitcoin ETFs.
Smells like an attempt by the banking elites to manipulate the price of Bitcoin.
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