BMAX: pricing “sats now vs sats later” via a mining sharechain (no L1 changes, no custodians, no oracles)

In exploring the dynamics of risk-free rates and their implications on currency value and investment strategies, it becomes apparent that the perception of risk-free rate is fundamentally influenced by the nature of the currency in question. With a hypothetical 0% risk-free rate, there's an implied equivalence in value between present and future assets, leading to a unique stance on investments such as Bitcoin (BTC). Unlike inflationary currencies where investing in tangible assets or equities can yield more than the initial investment over time due to inflation, BTC presents a scenario where future gains are not as straightforward. This difference underscores the risk-free rate as a reflection of currency inflation versus real goods, highlighting the role of counterparty risk and its impact on achieving profit without effort.

The concept extends into the realm of cryptocurrencies, specifically through the mechanics of sharechain networks. Here, the relationship between future miners and current shareholders introduces a nuanced form of risk, primarily revolving around the time required for the FIFO queue to process and distribute funds. The discussion further delves into the challenges and inefficiencies associated with unbonded shares within these networks. An example given illustrates how an imbalance in the distribution of rewards could potentially disrupt the competitive landscape of share pools, suggesting the need for mechanisms that address the longevity and profitability of contributions by adjusting the share eligibility criteria over time.

Moreover, the notion of recasting this dynamic as a form of miners' insurance scheme is introduced, proposing a balance between risk and reward for both unbonded and bonded shares. This approach aims to equalize the expected value of participation in the pool, whether through immediate large rewards for unbonded shares or more certain, albeit delayed, returns for bonded shares. The feasibility of such a scheme hinges on the ability to store and later distribute rewards in a manner that ensures fairness and viability. Suggestions for achieving this include adjusting the payout structure to incentivize participation and maintain competitive parity with traditional mining pools.

Lastly, the conversation touches on the potential for creating a market for bonded shares, allowing for immediate liquidity for miners. This concept addresses the demand for flexibility and immediacy in accessing rewards, positioning the sharechain as not only an innovative mining solution but also as a financial instrument catering to diverse miner preferences and market demands.