I bought my first NuShares a couple of days ago, and I have a few questions.
I have read the whitepaper and the FAQs and they seem very light on actual details about NuShares. Here are my questions:
The price of NuShares on Bter seem to be going down slowly. I suspect that this is because there has been no dividend paid yet (that I know of). Is there a regular periodicity to dividend payouts, or is it whenever custodians feel like it? If the answer is b., what incentive would a custodian have to EVER pay dividends? Why wouldn’t they just kept the Peercoins to themselves?
I have left my computer on for 2 days straight minting NuShares, and I have received nothing so far. Is minting at all a function of your CPU’s processing power (my computer has a 4 year old AMD processor)? What is your computer actually doing during the minting process? (It would be nice if the client actually gave some explanatory messages during the process.) How long, on average, does it take to actually gain some extra NuShares from minting?
There could be any number of reasons, but I think it’s likely there are some NSR holders who are purchasing from Jordan for the sole purpose of selling to the public for a higher price. Once NSR purchase restrictions are tightened, I would expect the BTER price to begin increasing. An important thing to remember is that there are approximately 500M NSR in the hands of shareholders right now, and BTER’s daily trading volume is often below $10,000 US. By all accounts it seems that the large majority of shareholders are planning on holding NSR for the long-term, so that they can contribute to and vote on the Nu network.
It’s up to each custodian to provide a dividend payout schedule. @KTm for example provided a payout table in her initial proposal.
The Nu white paper addresses your second point. “It is likely custodians will demonstrate they hold a substantial quantity of NuShares so that shareholders know custodians’ interests align with their own”. NuShares will be valued based on the anticipated future dividend streams provided. If a custodian stole the dividends, the value of their own NuShares would suffer. It is an important reason why existing custodians have shown they hold significant NSR reserves, and that the development team is familiar with them. It’s unlikely a random newcomer to Nu would be able to get majority shareholder support to be a custodian.
Share days are accrued by shares if they are undisturbed (not sent or staked) after becoming a verified transaction. After seven days, shares are fully matured (usable for minting). Holding shares beyond this date has no impact on the difficulty of minting a block. This creates an incentive for NuShareholders to mint as soon as possible.
Presently it will take an average of 5 weeks of minting attempts for an output of size 10,000 to find a block. This will go up as additional NuShares are distributed.
The price of NuShares on Bter seem to be going down slowly. I suspect that this is because there has been no dividend paid yet (that I know of). Is there a regular periodicity to dividend payouts, or is it whenever custodians feel like it?
Check out Kiara Tamm’s proposal (the only live dividend proposal at the moment), it has a ton of information, such as how much she has to sell for a dividend payment, and how long after she hits that mark until it is paid out.
I think NuShares are still on the down low in the cryptocurrency community. I expect this to change once we can announce the first dividend payment went out, and when more exchanges list them (CCEDK just listed them yesterday).
Note that the price on BTER is still higher than what Jordan Lee is selling them for. I don’t expect they will drop below it for very long before buyers grab them to sell later.
Thank you so much for your answers, and for the links…very thorough. I feel a lot better, and I feel a lot more confident that NuShares will succeed in the long run.