[quote]1. When NuBit demand is low, NuShares will be created and sold while NuBits will be purchased with the proceeds and burned. NuShare supply increases as NuBit supply decreases. This depresses the NuShare price as it supports the NuBit price to the pegged level.
- When NuBit demand is high, NuBits will be created and sold while NuShares will be purchased with the proceeds and burned. NuBit supply increases as NuShare supply decreases. This inflates the NuShare price as it suppresses the NuBit price to the pegged level.[/quote]
What Jordan said here is similairty of pledge scheme, when you burn NBT for NSR, actually you lower the pledge ratio so that NSR holders can borrow less NBT from protocol. When you pledge NSR to protocol, you actually burn it, when you return NBT to protocal, in fact you burn NBT.
One point I disagree with jordan is the NSR buying order cannot maintain NSR price high for a long time, when Nu launched, you said the PPC dividend bought from market will lift PPC price, yes, it lifted, but only briefly and then fell again.
The free market is watching Nu, the operation status is critical for NSR price, you cannot play trick with NBT/NSR dual direction burning to manipulate NSR price. Grab the hair pulling themselves, does not work because they(hands vs hair, NSR vs NBT) are internal effect. If nu wanna becomes successful, it must absorb more FIAT from OUT OF Nu system as my picture shows above.
For me and perhaps many potetial investors, Nu DAC/DAO is a money-losing company,and if we couldn’t find a proper renenue way, the endless expenditure on liquidity providing/Parking will kill Nu sooner or later, is this campany’s share very valuable? I am not sure.