Dutch auctions could fail for all the same reasons that you alluded to in the IRS investment thread. (just change the names)
Despite your suggestions elsewhere that IRS might be a small alt corp we are not. In terms of size IRS is currently 2nd tier behind AXE, M2S and ECORP and we are growing.
Evidence - http://www.perpetuum-online.com/~gargaj/
Our internal structure is capitalist in nature and we ARE set up to accept public investments and grow them. Link to a horribly derailed investment thread.
http://forums.perpetuum-online.com/topi … st-in-irs/
In general I'm opposed to secured loans. Where a liquid market exists the borrower is better served by selling and buying back what would be the collateral through the market. In the absence of liquid markets the lender takes on the liquidation risk warranting a prohibitive cost of borrowing.
The borrower receives less than value, if not the lender losses the time value of the loan in the event of default. If selling into the market, instead the "borrower" receives full market value and if they have the patience to place orders may profit on the spread.
Using 3rd star light robot kernels as a current example.
infinite buy - 10800
best bid - 12000
best ask - 14000
So assuming 10 kernels with an infinite buy value of 108,000 and a discount rate of 10% over a fixed period the Present Value (most I could borrow) is ~98,182.
Or the same 10 kernels could immediately be sold into the market (at 5% tax rate) for 120,000*.95 = 114000, that is 16.1% above my borrowing power. (16.1% less time spent kernel farming)
Buying back the kernels at market would result in a net borrowing cost of 22.8%. However, assuming I didn't need those kernels right now, I could split the bid/ask with a buy order @ 13000 per kernel with a resulting cost of borrowing of 14%. Yes 14% is higher then 10% but I have absolutely NO time constraints on when or even if I must repay the loan to avoid default (losing all of my kernels at a sub-market value) plus the time time that I didn't spend farming kernels to secure my loan has value that IMO exceeds the price of a kernel.
Finally assume IMO the most likely scenario, I place a sell order and cost average out at 13,500 over the course of a day (while I'm farming more kernels, BS'ing, PVP'ing, enjoying my time, whatever). I put 128,250 in my pocket and at the end of the period cost average back in at 12,500/per=125,000 and rather than paying interest I book a gain of 2.6%
Anyway, I may be biased but I just don't like secured loans unless the borrower retains use of the collateral as in a mortgage or lease, but those rely on legal ownership structures that don't exist here so, we're back to issues of trust
