Tim Bouma on Nostr: Gradual rugpull is the same as fractional reserve. If I know that I only need 10% of ...
Gradual rugpull is the same as fractional reserve. If I know that I only need 10% of the funds to do day-to-day clearing, then I am tempted to use the other 90% for other purposes (loans). Medieval goldsmiths who issued receipts on deposits of gold for safekeeping, figured this out quickly, and started lending out the gold they had in their safekeeping. Modern banks figured this out with central banks who now demand a 0% reserve.
Published at
2024-10-10 11:25:51Event JSON
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