* Its a technically flawed solution that now has so much hype, abandoning the idea would lead to further FUD, tarnishing the project's future direction. So we must go through the motions to appease the energy FUD warriors.
As far as I can tell, it was a trick to remove coin from circulation, locking it away where it could not be used again. The fact that people have tokenized these beacon coins on other chains to trade show that people want their money back!
Being able to leverage a committed sum of money via collateralization is as old as financial systems themselves.
If you can find any specific reasons for your take I'm very open to hearing about them?
In the legacy financial world, 2nd mortgages just lead to private inflation of the fiat money supply (the money is being conjured out of nothing to pay for an asset that was already paid for). Nothing is produced, except some energy is burned updating centralized databases.
Having systems where both realities exist is great. I'm a fan of hard money. It is honest.
Gonna need some citations here for this one.