Trust level. If you see a seller advertise 1 teddybear for sale, and you know they burned 3 teddybears worth of coins just to offer you that first teddybear, you can be pretty certain they're not going to run off with your money.
On the other hand, if a new seller didn't spend anything, they could run off with your coins on the first transaction.
This isn't just theoretical; it's the central problem in most darknet markets.
And if they are participating just to build a sufficient level of trust before doing a runner, then you are saying there must be a ratio of "trust to stake" - maybe 1:1 at first maybe increasing - it would be interesting to know what market makers in stock exchanges run at - 1:10 or more?
sillysaurus3|8 years ago
On the other hand, if a new seller didn't spend anything, they could run off with your coins on the first transaction.
This isn't just theoretical; it's the central problem in most darknet markets.
lifeisstillgood|8 years ago
wastewaste|8 years ago
Tepix|8 years ago