Reading the FLOT BTC operations thread, I was wrong about FLOT not signing before the peg broke and I conflated the peg breaking spreads by liquidity providers with FLOT's performance. I apologize. I'll correct my statements where if I've spoken with this assumption when I come across them.
Nu has always advertised a $1.00 peg as what customers should expect their US-NBT be valued at. The plan had been for a long time if not forever to use NuShare sales for peg support. Not recognizing this means a failure to understand the NuBit reserve model in its current state.
Velocity of FLOT's peg support can be argued to have been too slow with the expected signing intervals. If signing is expected less often, increase the amounts. That's easy to say, but there's always a limit. It was a stressful situation and I didn't do much better as part of FLOT BTC until after the firing motion and peg break when only 3 out of 8 signed (of 5 required) to release funds to NuBit holders.
It's a way, but not the expectation of NuBit holders or according to the NuBit liquidity model.
FLOT NSR might not even have needed to sell NuShares more aggressively had the proceeds of the only sale not been kept away from NuBit holders and FLOT released all reserves.
The spreads were set breaking the expectation of the $1.00 US-NBT. That must have eroded confidence more than anything. It's not shocking to me in hindsight to see the firing motion. An action to fix the underlying problem can not be blamed for symptoms that were only a matter of time.
We need to be clear with what happened and what didn't to know which conclusions we're able to draw.
When did the tier 1–4 reserves go below 20 BTC? July 3 there was 25.74 BTC in FLOT BTC multisig and about 13 BTC at @masterOfDisaster's gateway.
The core design has not been shown flawed by the events, not even the implementation. I thought FLOT wasn't up to speed, but they actually may have been after all, just they didn't use the acquired funds and continue operations.
There has been no lost shareholder funds in Nu with @Phoenix as Chief of Liquidity Operations as far as I'm aware. The B&C Exchange development fund is not Nu's. Nobody has explained where funds would have been lost. It's stubborn hearsay for what I can tell.
Thank you for a post with real substance.