I am assuming that, if we don’t consume incoming dollars created by the sale of NuBits for investment and dividends, we have a perfectly balanced system - increasing supply at will to create a selling wall to keep the price no higher than $1 - and using those dollars to maintain a buying wall to prevent the price dipping below $1. Which maintains a stable NuBits price, which is the object, right?
But if we deplete the dollar side, even by 1%, we compromise the integrity of that equation.
The result is not that NuBits will become a ponzi scheme as some have suggested, since NuBits will still be providing a productive and legitimate service - a stable unit of exchange.
Rather, the problem, as I see it, is public perception. Everything hinges on getting NuBits accepted as safe and sure - but if our equation is not water-tight, it risks being flawed in the minds of people, particularly if opponents keep drawing attention to it. People won’t use something they feel is not secure.
The downside in maintaining an even balance between buying and selling walls is that NuShareholders will not get dividends for their labour and financial investment - but the upside is that NuBits will have greater chance of gaining adoption, in which case the share value will rise (I presume)
Meanwhile, the parking mechanism can be used, not for the defensive reason of maintaining NuBits, but as part of a conventional banking role - borrowing money to loan out to businesses at a higher rate, etc. In time, successful profit lines can be established, thus building a dividend-base in the longer term.
My understanding is very imperfect, but this is how I see things - at the moment
