Backbone Reserve Operations (Tier 6)

[PoP]

But in all honesty, daily sell offs with no minimum is only going to guarantee deminishing returns. Theres no opportunity for nsr to grow and the inflation becomes less and less worth while.

There should be a climbing NSR sale minimum set at standard increments. The current method over values NBT and needlessly cripples NSR. If we set a public schedule as to the minimum value NSR is sold off at we can let NSR grow and gain more for tge reserve in doing so. We could even use some of the reserve to build an nsr buy wall to maintain its uoward momentum ie…

Week 1: 65 satoshi is the lowest we sell
Week 2: 67
Week 3: 70
Week 4: 73

Something like this.

Then we use a portion of the add revenue to also support NSR so that instead of driving down the only revenue we have we support it. This public listing could be scheduled to go as high as 300 sat to show the public we have a roadmap to recovery. No ambiguity.

Of course we would need appropriate actions taken in the event of an NSR selloff. (We may even slightly reduce NBT value to rebolster NSR) I think we need stability on both ends over plummeting one side to prop the other

@Phoenix

[ConfusedObserver]

Ahh so clear solution here: why dont we just try to influence or predict NSR?

Is that sarcasm or do you want to read the preceding post of @GreatScott once again?

We may even slightly reduce NBT value to rebolster NSR

You are a rebel. Beware of the wrath of @Phoenix!

[PoP]

Sarcasm. Im drafting another complimentary proposal now

[PoP]

Proposal Posted. Bonds

[Phoenix]

Week 1: 65 satoshi is the lowest we sell
Week 2: 67
Week 3: 70
Week 4: 73

Something like this.

This idea has intuitive appeal. The problem is what if we do this and the NuShare does not rise? In that case, we have no means of keeping the peg. That is unacceptable.

All shareholders are frustrated with ongoing NSR sales. That is how we keep the peg, which is in turn what gives NuShares value. So we can’t stop if we don’t have the required reserves in hand.

These NSR sales are cyclical. I can’t predict when the part of the cycle we are in will change. What I can tell you is that NSR sales will continue for as long as total NuBit demand is in decline, and not much longer. The only way to improve the situation is to create demand for NuBits. When that happens, the reserve will fill and after that NSR buybacks will occur. It shouldn’t be that hard to stimulate modest US-NBT demand given that current demand is about one-third of demand in March. Once we get to about half the money supply we used to have, buybacks should begin.

NSR buybacks can begin with only modest improvements.

[PoP]

@Phoenix where are you getting the money to fund the buy backs?

And its a catch 22… yes, nsr may never go up but if you drive it down to 1 satoshi…do you keep selling?

I think giving the nsr markets a couple months to breath would give a better indication of which way it would go than suffocating it non stop. Market sentiments change and quite frankly, as seen with the 200 satoshi push, there is some decent buy interest. And honestly selling 2 mil a day isnt whats keeping nbt afloat. Holding off for a bit wont sink the ship. Maybe itll even spark some creativity as to alternative or supplemental solutions such as bonds or gamification.

[ConfusedObserver]

NSR buybacks are according to the Chief’s will conducted with the proceeds from sold NBT

The only way to improve the situation is to create demand for NuBits. When that happens, the reserve will fill and after that NSR buybacks will occur.

and not from revenue - which is utterly important!

So first you need to pump NBT, receive BTC for sold NBT.
The you can make NSR buybacks to dump the NSR that can at the moment be bought cheaply…
Once you sell enough NBT the peg collapses. NSR will get sold cheaply, etc., etc., etc.

And all of it only to drain money from those who buy NSR in the future.
It will collapse as soon as there are no fools left who buy NSR.
Those in control of the network can frontrun the market as often as they want to. They make the rules of the game.
The only uncertainty of it is when people stop buying NSR.

Beware of the time when @Phoenix changes his mind and speaks about spread and revenue.
He had so many chances.
I’m damn sure by then it’s only a means to pump…

[Phoenix]

And honestly selling 2 mil a day isnt whats keeping nbt afloat. Holding off for a bit wont sink the ship.

Reserves are currently quite low, so there isn’t any room to stop selling NSR. I think the 2 million NSR being sold each day is what is keeping NBT afloat right now.

FLOT was tempted in May and June with exactly the line of thought you are presenting here. We tried it against the vehement protest of Jordan Lee and the results were catastrophic. I won’t make that mistake. Instead, I will adhere to carefully laid plans during difficult times like these.

[PoP]

So 1. you think buybacks will be feisble
2. What is the recovery eta on your current plan? Assuming no change in nsr.
3. Thoughts on bonds? @Phoenix

[PoP]

So first you need to pump NBT, receive BTC for sold NBT.

How does one pump a tether?

[ConfusedObserver]

the results were catastrophic. I won’t make that mistake.

The results were foremost the results from the NSR buyback.
You make other mistakes.

I will adhere to carefully laid plans

Of course you will. They are your plans. If you change your mind, you will change your plans and adhere to them.

How does one pump a tether?

You don’t pump the rate, but the trade volume and even more important the amount of circulating units.

[Phoenix]

1. you think buybacks will be feisble
2. What is the recovery eta on your current plan? Assuming no change in nsr.

Everything in our network hinges on the level of demand for NuBits. It isn’t about a certain amount of time. It is about a certain number of NuBits being sold. If we sell 200,000 US-NBT today, I will be looking at NSR buybacks tomorrow. If we never sell an additional $200,000 in NuBits (whether CN-NBT or US-NBT), we will never have NSR buybacks.

Changes in the level of demand for NuBits controls the important economic events in our system, such as NSR sales and NSR buybacks. It is my job to react to changes in NuBit demand by applying a balancing intervention. It should not, however, be viewed as my job to stimulate demand for NuBits. That is the responsibility of shareholders. There are many ways to do it. Anyone who sees what needs to be done can step up and do it, while getting paid by shareholders for their work.

[jooize]

2016–10–11

2 M NSR sold into buy wall.

BTC Poloniex @jooize → Poloniex Gateway @jooize

[PoP]

At minimum implement an upward momentum clause. NSR is up as high as 75 in the past 24 hrs. In 30 mins the sell off will drop it to 63 or below.

[jooize]

2016–10–12

2 M NSR sold into buy wall.

BTC Poloniex @jooize → Poloniex Gateway @jooize

[jooize]

2016–10–13

2 M NSR sold into buy wall.

BTC Poloniex @jooize → Poloniex Gateway @jooize

[jooize]

2016–10–14

2 M NSR sold into buy wall.

BTC Poloniex @jooize → Poloniex Gateway @jooize

---

A couple extra million was sold by being consumed as sell orders.

Detailed trading logs available at https://github.com/NuTrading/Poloniex-jooize.

[jooize]

2016–10–15

2 M NSR sold into buy wall.

BTC Poloniex @jooize → Poloniex Gateway @jooize

[jooize]

2016–10–16

2 M NSR sold into buy wall.

BTC Poloniex @jooize → Poloniex Gateway @jooize

[jooize]

2016–10–17

2 M NSR sold into buy wall.

Withdrawal failed. Will try again later.