Backbone Reserve Operations (Tier 6)

[gesite]

Unfortunately your customers are affected much, which in the past you always said to be the most important aspect of your system. You are protecting shareholders, not customers. And that always ends badly for everyone.

[smooth]

Who decided on this 0.5% dilution limit and how can it be changed?

@jooize Thank you for the explanation of the numbers.

Another question. It looks like you are dividing the NSR to be sold between BTC and NBT market pairs. Is that correct, and if so how is it determined how much to sell into each market?

[Ghaleon]

Are these private sales or to exchanges?

[jooize]

Chief of Liquidity Operations set the 0.5% dilution limit. Only he or shareholders via motion can change it. An argument for why to change anything can influence decisions.

It looks like you are dividing the NSR to be sold between BTC and NBT market pairs. Is that correct, and if so how is it determined how much to sell into each market?

It’s been by best price, but we’re discussing how to deal with that to ensure there are funds for expenses and direct peg support.

Are these private sales or to exchanges?

These are all sales on exchanges unless specified otherwise. A few direct trades for CNNBT were made before the 0.5% limit was set.

Unfortunately your customers are affected much, which in the past you always said to be the most important aspect of your system. You are protecting shareholders, not customers. And that always ends badly for everyone.

We’re not protecting anyone more than the other. Shareholders rely on customers for revenue, and customers rely on shareholders for a stable product. Dilution is unattractive for shareholders and beneficial for new investors. If shareholders do not manage to avoid dilution, they may deserve to be diluted and replaced.

[smooth]

If shareholders do not manage to avoid dilution, they may deserve to be diluted and replaced

Strictly speaking, you can always avoid dilution by refusing to dilute. However, if NBT were to drop to 36 cents then it is very questionable whether anyone has ‘managed’ (effectively) to avoid dilution.

Anyway, I have another question. From the above posts it looks like not even all of the 0.5% per day is being sold. Am I reading incorrectly and if not, why is this the case, and how can it be changed?

[jooize]

2018–04–02

0.5% of circulating NuShares: 0.005 * 3,158,032,794.5797 = 15,790,163.9728985

15,790,163.9728985
0.47275751

[jooize]

Strictly speaking, you can always avoid dilution by refusing to dilute.

Yes. What shareholders and investors care about is NuBit demand that brings revenue. NuBits’ liquidity model enables shareholders to avoid dilution with Park Rates, which simultaneously guarantees those NuBits won’t pressure the peg for the duration and attracts sales of NuBits that bring in liquidity.

Park Rates (Tier 5) offer a reward proportional to the need for liquidity. Park Rates are attractive to people. They just need to know about them and be informed about the function and its inherent risks. Nobody dares advertise Park Rates because the ignorant would stamp them as fraudulent. It can certainly be done, and will be, but I can’t do and just know everything at once.

NuShare Sales & Buybacks (Tier 6) is the mechanism that makes it possible to fully back NuBits even when the decentralized backing assets depreciate (lose value). Tier 6 creates an economically defensible incentive to invest in Nu to provide backing liquidity for NuBits. It’s frequently criticized because shareholders profit from the funds NuBit buyers bring into the system. Customers are buying a product that is designed to be stable, and the way it can be stable in an entirely decentralized way is with incentives for the sustenance of the system. Customers, shareholders, and investors are all part of that synergy.

Value is belief in utility. We’re crafting and configuring an autonomous money formula to function in the conditions of a global economy as an economic system that conceivably can replace traditional currencies for many uses.

Lots of money was invested the previous (and first) time we had to sell NuShares for liquidity. More money than the possible net gain from the first buybacks. Those investors could later profit greatly from buybacks. That’s part of how the system can function, and has (albeit with an uncomfortable lag in Tier 6), but the vision is to grow NuBits into an ecosystem which sustains on the value provided by its utility. It’s up to shareholders to maintain vision and management that gives them what they want.

Imagine the utility of NuBits. Stable currency that interfaces with any other internet technology while independent of government systems. Not everyone believes the stability can be achieved without conventional reserves. We do.

[jooize]

From the above posts it looks like not even all of the 0.5% per day is being sold.

Please explain why it seems that way. The last line of remaining_shares_to_sell with a matching sales_proceeds amount implies an amount_of_shares_sold. (previous post)

[jooize]

Make thorough and concrete bylaws for changing these numbers, including a minimum time of implementation such as a few months.

That might have been too slow as we didn’t know what such a situation looked like before we were in it. Thoughts?

Have an easily accessible resource to understand these numbers and report on any coming changes continuously with a timer.

Yes, and yes to the degree possible. @woolly_sammoth has contributed lots of progress in gathering data (blockchain, economy, …) and enabling us to present it.

[crescentluna]

Daily NuShare sales creates about 0.5 btc and in order to gain 100 btc which is at least required to bring back Nubits price to $1, it will take 200 days. Are you currently buying Nubits everyday, or planning to keep btc until certain point and then plan to buy Nubits with large amount of btc on hand? Also when I go look at dashboard, it seems that your btc liquidity amount doesn’t increase as much as it is mentioned on this thread. Everyday gaining 0.5 btc should have made your liquidity amount increase by about $3.5K, but it doesn’t. Can you please take a look at this situation?

[smooth]

Please explain why it seems that way. The last line of remaining_shares_to_sell with a matching sales_proceeds amount implies an amount_of_shares_sold. (previous post)

Okay the first section is NSR sold for BTC, the second section is NSR sold for NBT. (Is this correct?)

What is the third section?

[smooth]

Park Rates (Tier 5) offer a reward proportional to the need for liquidity. Park Rates are attractive to people.

IMO park rates are helpful when there are short term imbalances. They are not effective when all reserves have been depleted. Offering very high rates is only making matters worse by increasing the outstaqnding NBT at a catastrophic rate and therefore increasing the capital shortfall. What is needed is a recapitalization, which requires more dilution that 0.5% per day (i.e. years to recapitalize even a few million dollars necessary to partially replace the missing reserves).

Nobody dares advertise Park Rates because the ignorant would stamp them as fraudulent

That is somewhat accurate. They are not really fraudulent, but they are reflective of high risk. Meaning there is a high probability that the actions being taken (limited dilution to 0.5% per day, paying extremely expensive interest) will not succeed and those with parked funds (as well as those with unparked funds) will lose their money. The current park rates and NBT market prices imply roughly an 80-90% chance that holders of NBT will at some point take a total loss (likely due to either slow spiral of value down the drain, or perhaps a faster collapse, if for example, there are additional delistings) and likewise so will NSR holders.

You are on a path to (likely) collide with a brick wall and destroy everything you have worked for here. Please reconsider.

[jooize]

2018–04–03

0.5% of circulating NuShares: 0.005 * 3158880437.5525 = 15,794,402.1877625

15,794,402.1877625
0.47383206

[jooize]

2018–04–04

Circulating supply of NuShares: 3,173,050,710
0.5% of circulating NuShares: 0.005 * 3,173,050,710 = 15,865,253.55

15,865,253.55-5,000,000
5M of 25M total in payment for exchange listing.

10,865,253.55-3896390.8464
1944.2990 USNBT

6,968,862.7036-1467914.7949
585.9916 USNBT

5,500,947.9087
0.16502843

Circulating supply of NuShares: 3,183,918,983
Difference: 3,183,918,983-3,173,050,710 = 10,868,273 (payment of 5M not sent yet)

[ChrisTDM]

5M of 25M total in payment for exchange listing

Is it about Nubit listing ? NuShare Listing ?

I don’t know anything about exchange listing so out of curiosity i would like to know ,

Is 5M a first step with still 20M to pay to an exchange ?
Does it mean you are sure on getting listed with all the 25M or it s just a first payment/step before the exchange look at the projet ?

Or is it 5M just about Marketting help for exchange listing ?

[Ghaleon]

How much usd worth is required to bring this back to equilibrium currently?

[jooize]

1 BTC + 25M NSR is for a listing of NuShares on an exchange with $14M+ daily volume.

[jooize]

How much usd worth is required to bring this back to equilibrium currently?

Equilibrium is $2.9M (42% of circulating value, at peg price). Restoring the peg may not require that sum.

[jooize]

2018–04–05

0.5% of circulating NuShares: 0.005 * 3,183,976,930 = 15,919,884.65

15,919,884.65-5,000,000
5M (10M) of 25M total in payment for listing of NuShares on $14M+/24h exchange.

10,919,884.65-9792780.1496
4886.5973

1,127,104.5004
562.4252

[jooize]

2018–04–06

0.5% of circulating NuShares: 0.005 * 3,194,965,266 = 15,974,826.33

15,974,826.33-5,000,000
5M (15M) of 25M total in payment for listing of NuShares on $14M+/24h exchange.

10,974,826.33-1871868.7750
1494.5000 USNBT

9,102,957.555
4542.3758 USNBT