Some may notice I've posted quite some suggestion recently, now I am summing up all my brain storm into the ultimate proposal. Please feel free to correct me.
As NuBits launched in Sep, the elastic supply of cryptos era is coming, there are some other people trying to resolve the fixed supply issue of BTC, you can find information below:
Elastic supply competition is coming so we should improve our system ASAP.
At first, what's the relationship between NSR Cap. and NBT Cap?
Nunet Cap.= NBT Cap. + NSR Cap. NBT is our production/service and NSR is share, usually the more NBT we sell, the better quality of NBT(stable), the higher NSR should be, although NSR price may subject to some speculation.
Secondly, why do we use fractional reserve for NBT? Because we need funds to develop our software and marketing then some NBT selling revenue(USD, BTC) is taken from buying wall.
Some people are suspicious about our pegging mechanism since we have fractional reserve and even accuse we are perfect ponzi scheme.
What they see in our white paper is that we continuously taking revenue from our buying wall of LPC and hoping the new coming fund can reinforce the old fractional reserve, seems quite “Ponzi”.
Then, why not try 100% reserve? Let’s LPC keep all revenue in buying wall. Next question is, where is the fund for Nu development?
Can we issue more NSR to support those spending？In seigniorage white paper and Jordan’s proposal, burning NBT for NSR is already discussed, we agree that if NBT pegging in trouble, the NSR will come to help. But why NBT will be in trouble? because we weaken buying wall by taking some fund away, therefore, why not take money directly from NSR Cap. and leave NBT’s buying wall untouched?
Today, Jordan’s team is still holding large quantity of unsold NSR, they plan to sell it to support Nunet operation and software/marketing and that’s it, please continue in this way by issuing more NSR with vote system.
How can Nunet punish those lazy NSR holders if they don’t mint? Dilution! They lose 2-3% every year because other NSR holders mint. We can also be open to anyone who can help Nu by giving them NSR or BTC/FIAT in a NSR auction. Jordan’s team can also get more NSR after their new project(such as cold-mint) accomplished.
Last but not least, encourage NSR holders become LPC by giving them extra NSR. We vote for a NSR/NBT pledge ratio(adjusted frequently), such as 1000NSR:1NBT, by referencing real world NSR price and pledge ratio(2:1 is suitable)
If you have 5million NSR, you may pledge them to get 5000NBT and become a LPC, after 5.7/11.4 days, the protocol give 5.01million NSR and you return 5000NBT so that system verify the 5000NBT not lost/stolen. And then you automatically renew the smart contract and repeat LPC.
Why I suggest NSR/NBT lending is that Friedrich Hayek said there are two ways to control circulation
1) buy/sell currency with other currencies/commodities. ( what our LPC do)
2) contract/expend short-term lending (what we lack of)
Protocol itself is ultimate sucker because if we vote for 1000NSR vs 0 NBT pledge ratio, the NBT supply will become ZERO within 5.7/11.4 days and without paying any interest to others.
Is BM satisfied with this kind of sucker? Thank for his grandfather aged Friedrich Hayek.
Since NSR holders who play LPC role get extra NSR, those lazy NSR holders neither mint nor LPC will diluted, what a good punishment.
To sum up, NBT will be 100% reserve and circulation controlled by short-term lending, thus NBT pegging operation is nearly zero cost, zero risk except that LPC’s account hacked/stolen, exchange default. Usually NSR can handle NBT circulation from Zero to normal level, in an extreme case where NBT demand very high and NSR not sufficient to pledge, we vote a classical custodian holding extra NBT from thin air, just like Kiara today.
If NBT sold well, the NSR Cap. will definitely go up and provide us continuous fund to development. NSR price may drop just after a dilution occurs, but will go up if those developments suceed.
One more thing, inflation. The 1929 and 2008 tragedy are both mainly due to terrible monetary of governments.
Hey, this seems a hardcore BTC fan, but will be easily captured by Nunet if we provide anti-inflation unit. And I believe he will hate BTC for its instability because in the depth of his soul is "Friedrich Hayek", "Good money" and "neither inflation nor deflation etc". LOL
In future, we can make profit by providing Nubitmessage and even our own exchange (Open transaction), with profit, we can slowly lift the buying back price of NBT, that’s anti-inflation. It is the dream of Hayek and human beings: Good money.