I like this as a short term crisis response plan, but since you wrote it, nubits have dropped significantly (63 cents as I am writing) so I don’t think we should put a specific value for the peg.
Here are my thoughts
On 2 and 3:
We should pass a motion the allocate a large quantity of NuShares (equivilant to 20 to 25 percent of total existing nushares) and sell them as quickly as is feasible (either have FLOT sell them or have another person/persons take responsibility) direct to procedes to FLOT to implement this plan. “As quickly as is feasible” doesn’t mean we should sell them down to zero, I like your idea of a floor price and the shareholder pledge.
Raise the parking rates for durations of 1.5 months and longer such that people believe that they can buy Nubits for market price, sell them at the end of the period and earn enough interest to make up for any loss of principal and provide them some profit. High rates at a very short duration (days to a few weeks) won’t help because we will still be in crisis when the park time is up. Nu shareholders must implement this.
Instead of committing to a specific target, we should lay out how we will use the reserves so that people understand what are actions will be. As they say, the markets hate uncertainty, so tell them the plan.
I’d suggest a plan like this:
Commit to keeping the peg as tight as possible without completely running out of reserves.
- put 20% of the reserves at the current price
- put 30% of the reserves 2.5 cents below the current price
- keep 50% of the reserves off the buy “wall”
Whenever the top offer is used up, the second offer now becomes the top offer, a new second offer is put in 2.5 cents below it, and we reset the percentages to 20/30/50. If the market turns against us, we want to have an orderly withdraw.
Whenever there is more than there is more then some specific amount in other buy offers above ours, raise the top offer a small amount. Do this no more often than every few hours. This lets us inch the price up as people gain confidence. eventually we want to get back up to $1, but that will take a long time.
Whenever we raise more bitcoin, refill the offers as much as possible.
We don’t have to convince people that if they buy they will be able to sell at $1, all we have to do is convince people that if they buy at the current price, they will be able to sell in the future at the same or higher price. (or at least the sale price of what they bought plus what they earned in interest will give them a profit.)