264 sats \ 6 replies \ @2big2fail 5 Nov 2022 \ on: Getting Started | Fedimint bitcoin
what prevents a federation from issuing more tokens relative to reserves? can't all federations become fractional without any transparency?
Looks like that’s covered here:
reply
yes they have a image that depicts fractional reserve. how is anyone ok with this trust model? it is a recipe for people to get completely wrecked
reply
Damn, that makes me lose a lot of faith in this project. Nearly all faith.
Why would it be impossible for user fedi wallets to show their guardian's total amount of issuance outstanding? It's like the fedi devs don't like transparency.
reply
I have all these same questions about audibility too.
It might be possible to do that but I’m sure there’s still an element of trust with displaying a balance of issued notes.
I do like the idea of automated runs though.
Maybe there might develop a market for ‘authority guardians’ or some way for ‘independent third parties’ to be signed up as a guardian (like an independent director on a board). But kinda can’t believe Im writing those words on a bitcoin message board lol!
Listening to Fedi team chat on podcasts it sounds like their pitching it, to start with at least, at local communities so people will personally know their guardians which may be biggest deterrent? Personal reputation risk.
reply
I guess, as it mentions right at the bottom, this issue exists in existing custodial relationships like exchanges 🤔
reply
That also what i'm wondering.
reply