Date: Wed, 04 May 2022 02:37:10 +0000
To: Eric Voskuil <eric@voskuil.org>
From: ZmnSCPxj <ZmnSCPxj@protonmail.com>
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Cc: Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
Subject: Re: [bitcoin-dev] BIP proposal: Timelocked address fidelity bond
	for BIP39 seeds
Precedence: list

Good morning e,


> It looks like you are talking about lending where the principal return is=
 guaranteed by covenant at maturity. This make the net present value of the=
 loan zero.

I am talking about lending where:

* Lessor pays landlord X satoshis in rent.
* Landlord provides use of the fidelity bond coin (value Y) for N blocks.
* Landlord gets the entire fidelity bond amount (Y) back.

Thus, the landlord gets X + Y satoshis, earning X satoshis, at the cost of =
having Y satoshis locked for N blocks.

So I do not understand why the value of this, to the landlord, would be 0.
Compare to a simple HODL strategy, where I lock Y satoshis for N blocks and=
 get Y satoshi back.
Or are you saying that a simple HODL strategy is of negative value and that=
 "zero value" is the point where you actively invest all your savings?
Or are you saying that HODL strategy is of some value since it still allows=
 you to spend funds freely in the N blocks you are HODLing them, and the op=
tion to spend is of value, while dedfinitely locking the value Y for N bloc=
ks is equal to the value X of the rent paid (and thus net zero value)?

Regards,
ZmnSCPxj