For those who aren’t aware, NuShares are a very unusual crypto in quite a few ways. One way is how its supply varies. In general, NuShares are created when NuBit demand declines, and NuShares are destroyed (burned) when NuBit demand increases. While NuBit demand is still modest in absolute terms at slightly over 1.5 million USD value, demand is up more than 1000% from year ago. This has caused very large daily NSR buybacks, which are generally burned and destroyed after purchase by Liquidity Operations.
While NuShare buybacks have been happening at a brisk pace for many months, they have become huge in the past couple days due to recent NuBit sales, averaging 6,409,158 NuShares bought back each day. While it is unlikely this pace will continue, either due to an increase in the NuShare price or a reduction in the rate of NuBit sales, it remains perfectly true that at the current pace of NSR buybacks, the last existing NuShare would be purchased on February 27, 2019.
Most people were excited about Bitcoin because it had defined inflation that was in the teen percents in recent years and slowly declining to zero in more than a century from now. However, this is a much more radical type of scarcity, with the available supply of NuShares in rapid decline due to very large buybacks.
The NuShare supply is currently contracting at more than 80% per year, based on the current price and daily buyback amount of $13,478 per day! Let’s sell some more NuBits and increase the rate of buybacks to even more ridiculous levels.
If people hate the way central banks dilute currency and want an asset that is truly becoming scarce, I know of no better asset than NuShares. I don’t know of any cryptoasset whose supply is declining so rapidly as NuShares. Bitcoin certainly can’t compare in scarcity. Not even close.
While we all know the NSR supply isn’t going to extinguish itself on February 27, 2019, the degree of scarcity being introduced is staggering. It is something the world hasn’t seen before. NuShares are a very special asset.