I have been following the forums for the past few weeks and I’m confused about FLOT and FSRT. Are they both the same thing, or are their purposes different? All I understand is that they’re both trying to stabilize the peg in some decentralized way; can someone explain to me how this works? Also, does it relate to T4 liquidity operations because I keep thinking they’re related.
FLOT: First Liquidity Operations Team
Link: Tier 4 Fund Management Discussion
I propose that 4 of 7 multisig addresses for NBT, NSR and BTC should be jointly managed by seven community members, known as the First Liquidity Operations Team, or FLOT.
Shareholders should elect individuals to FLOT via motion, with one motion for each signer. If 7 signers are not elected, then 4 of 6 or 3 of 5 multisig will be used. So, the first step will be to elect individual signers. Someone wishing to be a member of FLOT should advance a motion similar to this:
The following motion informed discussion: Three roles that need to be filled by shareholders
Basically, we need three functions filled: (1) a group to hold BTC as Tier 4 buy-side liquidity, (2) a group to hold NBT as Tier 4 sell-side liquidity, and (3) a group to hold NSR (to be sold for BTC) as Tier 6 buy-side liquidity.
FSRT: First Strategic Reserve Team
Link: [Passed] Proposal to create a strategic reserve of NuBits
The purpose of this grant is to create a strategic reserve of NuBits. There are only two circumstances under which the FSRT would transfer the funds granted:
If the sell side liquidity from other custodians becomes thin enough that there is a significant risk the NuBit peg will be lost before additional custodial grants can be passed.If shareholders instruct the FSRT to transfer the funds via the passage of a motion.
This group holds a 4,000,000 NBT fund that was to be used as sell-side liquidity in case of a period of rapid demand increase. This will be covered by group (2) in FLOT above once FLOT is operational.
A motion is not the proper way to insruct FLOT or FSRT to act.
These “committees” should act on their own in case of emergency to keep the peg.
Shareholders cannot be connected 24/7 in NU
in order to vote. Moreover, voting takes days to conlude, not fast enough.
Voting is required to establish ground rules, but not to direct individual actions.
Maybe we should add this info to the NuBits History page.