What happens when a custodian comes to a decision that they can no longer manage their grant?
The scenarios that I am thinking about are not situations where the custodian is trying to defraud the shareholders, but rather, those where the custodian is physically or mentally unable to continue in the best interests of the network. For example, unforeseen health problems, or a change in local regulations that impact their access to a network.
Nu is still new, so I don’t anticipate that it will be faced with this concern for a while, but I wanted to start to get people thinking about solutions for providing custodians a “way out” that best protects shareholders, currency holders, and everyone else.
My initial thoughts go to using a crypto proveable burn address to destroy the grant, or a way for the shareholders to vote for a replacement custodian that can take over operations of the original grant’s funds.
There are pros and cons to everything, and lots of solutions that I haven’t considered, so let’s hear what the community has in mind.
My ultimate suggestion is pledge NSR to get NBT for LPC. Thus we don’t care about the custadian stolen/hacked/run off/health/car accident etc…
We vote to pledge 1000NSR to 1NBT, or 1 NSR to 1000NBT, what ever rate as long as we have enough NBT to maintain sell wall.
Usually, the NSR market Cap is on a par with NBT Cap, at least same oder of magnitudes. If our business is good(NBT demands high),the NSR price will also probably rise.
If NSR Cap > NBT Cap, pledge ratio <100%. Risk handled within Nunet
If NSR Cap < NBT Cap, pledge ratio >100%. Risk shared by both market and Nunet.
In this way, we achieve two goals:
Minimize individual custodian risk and then get decentralized with thousands LPCs each pledging his NSR. Without E-gold result when government controls several central nodes. Nunet has central nodes now which are several big LPCs with real name accounts on exchange
Control NBT circulation with these short-term lend smart contract, without paying extra interest to anyone.