Introduction
Thinking of how the future Nu ecosystem might look like I came to the conclusion that if
- NuShares are a kind of Distributed Autonomous Bank and
- NuBits are the currency emitted by that bank
Nu might mimick other aspects of the banks we already know.
Interjection
I’m glad that Nu differs from the currently known bank systems in many relevant ways.
- I’m glad that the risk for operation the business is in the first line on the NuShares holders site.
- I’m glad that the NuShares holders can determine the ways of Nu by voting.
Additional types of custodians
But now back to the idea.
I was asking myself (and thExit in the peercointalk chatbox; nice that there’s a history now…) about the flexibility of the custodian concept. This is not meant to be complete. I rather want to start a discussion for future business aspects in the Nu ecosystem.
In the future there might be need for a
Credit Custodian
A Credit Custodian (from now on CC) is elected based on a proposal.
The CC is granted with an amount of NBT.
These NBT are available for loaning business only.
Burrowers’ credibilty is assessed through background checks by the CC.
The NBT are loaned for an amount of time at an appropriate interest rate.
The level of responsibilty of the CC for the granted NBT can be handled in different ways.
I can think of no/partial responsibility: the decisions which granting of a loan to allow and which to deny is relayed to the NuShares holders by a vote (could be handled as motion).
And I can think of extended responsibility where a CC can make decisions of his/her own. Furnishing a security might be necessary in this case.
The fee that is paid to the CC depends on the success of his business as well as the level of responsibility the CC has.
Election period, CC fee, loan interest rate, measurement of success, business areas in which the burrowers are, etc. are subject to discussion.
The business areas of burrowers lead to another kind of custodian. The
Venture Capital Custodian
The Venture Capital Custodian (from now on VCC). Is a special case of the CC. The burrowers are from the venture capital market.
Relevant parts of the VCC’s activity/responsibilty differ significantly from the CC, hence the need for another type of custodian.
Where a CC needs to do background checks of burrowers, the VCC needs to do even more intensive assessments of the business model, solution that is provided, the probability of success of the burrower, etc.
A lot of loans won’t be paid back.
The interest rate of the loan might be very high or the loan might be compensated by an equity holding in that company.
This leads to special requirements for the proposal and the rating of the VCC’s work.