A paradox in our peg

I have recently noticed a curious and important feature of our network. It is occurring to others independently as well. In the last day, @woodstockmerkle has alluded to what I am going to detail.

The paradox is that the less confidence there is that the peg will return, the easier it becomes to actually restore it.

Consider what happens if nearly everyone loses hope of restoring the peg in any sense and the market NBT price drops to $0.01. Now the entire NBT money supply can be purchased for $8,000. Let’s suppose some one does that, and they end up owning all or nearly all NBT. Now they can easily restore the peg with full reserve.

They just fire up NuBot and put walls up at $1.00 again. Surprised at the sudden resurgence of the peg, interest in NuShares increases and reserves are built up even as the speculator who purchased the entire money supply for $8,000 reaps huge profits from having successfully revalued his portfolio of NuBits from $0.01 to $1.00. He would also be able to reap huge profits on NuShares he quietly purchased before surprising the world with a return of the peg. Lessons were learned from the first attempt. NuBits are ready for a second try after increasing reserves and centralizing liquidity operations.

The peg failure has damaged our brand. However, it is apparant we are a decentralized group of people behaving transparently. The process of losing the peg was transparent. The problems and solutions are all transparent. The world still needs stable crypto. We ought to learn that Tether has enjoyed more success than us due to their higher reserve (which is now a fractional reserve according to their website) and centralized liquidity operations (on a USD pair, not a BTC pair, in their case).

The bottom line is that Nu doesn’t die until everyone is apathetic about it. We don’t see apathy on this forum. We see dedicated shareholders and probable competitors who come here to hate on us. Neither is apathy. We can see that the peg is likely to return at some point, because as consensus forms around the improbability of the peg returning, it actually becomes much easier to restore. If anyone cares about the peg, it will return to $1.00 eventually. It is a fair question whether anyone will care if we return the peg to $1.00. The longer we wait, the fewer people will care. We ought to endeavor to do our best to restore the peg. Time is on our side in many ways. We have earned our place as the premier decentralized stable crypto project. You haven’t failed until you stop trying. Let’s keep trying. While our share price has taken a beating, it may be that all we need to turn things around is the natural and inevitable shift that occurs in the mood and sentiment of investors.

Remember, the lower the NBT price, the easier it is to buy it all up and restore the peg fully. The task never becomes insurmountable, regardless of the NuShare price and the level of interest in the project.

I predict we will see a $1.00 peg on NuBits again.


It’s an interesting paradox, and a good thought experiment. But the conclusions seem absurd to me. By this logic, a $100 peg could be restored eventually.

I still have yet to read your post here. I’ll do that in a second, but since I still believe you are @JordanLee, I am giving you a warning that BlockShareholders are seriously considering replacing you as project leader of B&C Exchange. Unless you don’t want that to happen, you better either show your real self on the forum or contact the B&C development team to let them know you are still available to lead the project. If they don’t get an answer, then BlockShareholders will need to move forward with a new project lead. Read this thread…

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Jordan supposedly has not laughed a lot recently, but this definitely puts a smile on his face.


That is true, but only technically. The issue that makes this impractical is creating confidence with a large reserve. At a $100 peg, your reserve percentage is drastically reduced versus a $1 peg.

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A reminder to everyone: Personal financial incentives will always sway personal reasoning.

  • That’s why major BKS holders want to use the remaining reserves to finance B&C Exchange: they can take the money from NSR and NBT holders!
  • That’s why Phoenix wants to see a full peg: because he holds NBT!
  • That’s why I proposed the plan to permanently reduce Nu’s debts: because Nu doesn’t owe me!

Don’t expect “irrational” behavior from anyone. There’s always a reason. And don’t blame people for it, either. It’s human nature. :slight_smile:


I don’t understand what you mean, the fact that I am warning him makes him laugh? Maybe “notifying” him of what is taking place in that thread is a better word to use. I’m simply saying that if he does nothing and doesn’t show up anymore for development support, then shareholders will be forced to make a decision. Anyway, this is off-topic. I just wanted to post it here because I know he’s watching this thread.

@Sentinelrv I highly respect you, and I am in earnest. But the stuff you post is sometimes dispensable because it implies that Jordan doesn’t do things which he 100% certainly does: he reads what is going on and he knows the situation. And he ignores it. And he knows why. And you don’t.


As if that was necessary.

Because he created it!

For the price to go up healthily you need either an external revenue source that pays for the debt inflation, or just buying out all old debt at low prices and reissue new ones.

I know he has most likely read the thread already and knows the situation, but I just wanted to be sure. Maybe you’re right though. Somebody with good intentions probably wouldn’t be acting this way. I’ve never seen anything like this before.

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I don’t hope to take the money from Nu holders, what money?

B&C can survive on its own if released, even the fund of 100k NBT never come back.

The remaining BTC reserve held by FLOT. We do have a recent thread with this title: Transferring all Nu assets to B&C. :slight_smile: You can imagine how different that thread would look if none of its participants owned BKS, which is the financial incentive I’m talking about.


Two things:
1- I don’t exactly understand the difference between “Issuance Pool” and “Reserve Balance”, but the sum balances out close to Total USDT authorized. It may or may not be fractional.
2- It’s a webpage, not an auditable situation that is possible with Nu and the disclosure of addresses (i.e.: the FLOT addresses)

So the numbers look good (or a lot better than Nu) but can you trust them.


The remaining BTC is neglectable, LOL

It is still money, which creates incentives. Anyway, I don’t mean to be accusing you (or anyone else) personally.

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Sure. With the 25btc FLOT has, if BTC price rises to $25,600, Nu will be fully reserved again. Time is on our side.

If Nu picks up all the NBT, then the money supply starts at zero (in practice Nu wouldn’t get it all, but it might get close to all of it). This means few funds are required to have a full reserve. Let’s say BTC ends up at 2000, giving us 50k in reserves. Using NSR sales over time as the community recovers, another 50k could be raised. That is 100k in reserves, and there may only be 100,000 NBT in circulation after Nu pulls most NBT back in. It is plausible.

Full reserve. Full peg. We can do it if we are patient and tenacious.


then better stop destroying and exploiting it!