Frankly speaking, Bitshares ecosystem, especially smart coin ecosystem is facing bottleneck, recently the whole cryptocurrencies is in bear market, BTS price also wander in low level, consequently, margin calling happen frequently and smartcoins like bitCNY is in big shortage. When I wrote this, in magicwallet traders need to pay 1.12 fiat CNY to buy 1 bitCNY. AEX, the first central exchange that open bitCNY market, now issue CNC, a token similar to USDT, and adopt it as base currency because now they are not confident that bitCNY can work well and fulfill the exchange demand，if we cannot find solution to overcome these hurdles, “make Bitshares great again” will be hollow words.



The current margin call rule has some flaws, which give BTS shorters big chance to make benefit and bring BTS longer big risk, hopefully the flaws will be solved by a planned hardfork with “sell only required collateral while margin call” feature in 1-2 months, however, even the hard fork happen without delay, it still do not solve all the problems, Bitshares need some infrastructure to do BTS market value management, to bring the ecosystem to a more stable an active level.



I now propose to do “official market value management” to add power to Bitshares, below is the planned steps:



1. Charge market fee for smarcoins like bitCNY and bitUSD.



2.Use the collected fee to buy BTS.



3. Borrow bitCNY/bitUSD by putting the bought BTS into collateral with high collateral ratio and continue to buy in BTS.



With this procedure, more and more BTS will be locked as collateral and more and more smartcoins will be supplied, all this will create incentive and also the expectation for BTS price to go up, consequently this will speed up the grow up of the smart coin ecosystem and then the whole Bitshares ecosystem.



what a market fee for smartcoins is appropriate?



the fee rate should be low enough to keep the user experience as almost same as before, and also should be high enough to provide enough fund for market value management, considering all this, 0.05% should be a good level.



how to manage the whole operation procedure?



create a trading account for each smartcoin, for example create committee.cnymaker for bitCNY operation, the account will be owned by committee-account and the active key will be set as say 3/5 multisig, normally the accounts in the multisig structure are from committee members.



operation will follow some predefined rules, taking bitCNY as example:



Rules for placing/canceling orders to buy BTS:



1. while bitCNY is priced lower than 1 fiat CNY in market, then stop placing new buy orders.

2. while bitCNY is priced higher than 1 fiat CNY in market, place order to buy BTS, with the price at least 1% lower than the top buy order in market.

3. if any exist buy order A is with a price more than 10% lower than the top buy order, cancel order A.



Rules for borrowing bitCNY:



While borrowing bitCNY, the collateral ratio should be set as no less than 3, while the collateral go down to less than 3, stop buying BTS and use the collected bitCNY to reduce debt until the collateral is higher than 3.



Now more decentralized exchange appear in the market, CYBEX，a decentralized exchange forked from BTS with adding many ICO friendly features, is planning to get big share in the market, Bitfinex also plan to develop EOSfinex on the coming EOS platform, if Bitshares cannot make big advance by making good use of its specific advantages, no one can guarantee a good future. I hope everyone can carefully check the proposal and suggest constructively, I hope we have chance to make such a change happen and make bitshares great again.



