We have seen a variety of perspectives on recommended park rate voting. Until an automated feed directly into the NuClient is possible, I plan to update this thread manually with recommendations.
I recommend 0% rates for time durations shorter than 11.4 days. I don’t believe parking for shorter durations than this are of any benefit to the network, because the funds become available again nearly immediately. Also, for extremely short durations, the transaction fee can exceed the parking reward, which is a bad user experience.
Today’s buy-side support is higher than ever, at almost USD 150’000. This means that the peg is looking strong, so I recommend low rates for short-term parking. However, NuBits is still largely untested, so I recommend rewarding long-term parking with moderate-to-high rates. Remember, in the crypto world, one year is a long time! The commitment to trust the NBT/USD peg should be rewarded. Moderate rates will also help to encourage new users to try out the NuBits client.
Keep in mind that the Fed targets USD inflation at 2%. Anything below 2% is considered a loss for the parking user, and a gain for the network, because of USD inflation. 2% can be considered the “standard” rate, so subtract 2% from your votes to visualize the “actual value” of the rates.
Here are the current park rates in the client. This has me confused. Why would shareholders vote for such short rates, while not rewarding users for longer parking terms? Perhaps someone can enlighten me.
My guess is a shareholder wants to demonstrate that parking works as a promotional tool for the network, but doesn’t want to provide longer-term rates because they are a higher cost to the network.
We’re in a period of demand expansion so I’m voting for all zero rates. Interest rates should only be used when aggregate demand is declining in my opinion, except for short-term promotional purposes like above. My votes may be insignificant, but that’s my rationale that I’m sure others share.
Are we? I don’t see hundreds of new forum users coming here now, merchant accepting it, or many questions asked.
Only a few people in the world owns and used nubits (maybe less than 200 people? ). We should use all of our power and means to promote it. And we’ve found that parking is a good incentive to make people talk about us, buy nubits, trying to park, come into the forum. etc.
I really see parking rates as a way to attract new user, which we desperately need. We are no-where close btsx community, and beside some big arbitrageur, I haven’t read of many people using nubits. IMHO we should have very very very generous parking rates , also for short term parks. We need to attract users, and I don’t care about inflation now. If there are no users of nubits, the entire point of keeping the peg just for us, fails.
Parking is a very sophisticated mechanism and I personally wish that every member of every altcoin and bitcoin community wishes to try it out.
I wanted to make another thread, but first I want to hear your thoughts.
NuBits still need a lot of advertisement to gain speed, form a community, become an important player in the crypto coin world.
I think the parking rates can be seen as an advertisement.
Placing ads costs money. So I’m fine with the costs that are created by paying parking rates!
Nothing has its right place in this world just because it’s technically sound and fills a need; not as long as it’s not known for that!
Again this is only my opinion, but yes we’re in a period of aggregate demand expansion. It was expected that right after release we would see a bubble of activity. Lots of people purchasing NuBits to try them out, or speculate on them (which they soon discovered they couldn’t).
I think of “aggregate demand” as a period stretching for weeks, or even months. Day-to-day trading volume doesn’t necessarily affect my perception of it. Will NuBits have more users a month from now? If yes, parking rates should be zero. If not, then parking rates should be offered. I believe it would be a mistake to think that because we are past the initial bubble of use that we’re all of a sudden in a long-term decline situation.
I don’t see any indication that we’re going to have fewer NuBits users a month from now. Immediately prior to release we were averaging 20-40 users per day on nubits.com. We’re currently north of 400 on average (after a peak of 4,000 on release day) and I would expect that number to increase significantly when NuShares trading begins on public exchanges.
I agree with that, but still think a park rate above 0% might be able to boost the talk about NuBits a little bit.
I would only refrain from that if we come to the conclusion that NuBits (protocol, client, etc.) needs some more development before trying to attract more people by advertising it.