[quote=“ttutdxh, post:101, topic:3169, full:true”]
No I don’t. The $100k is still fully in Nu reserve, in form of custodian debt or burned NBT, in your case a unknown value BKS collateral, worth who knows how much, is the only amount left.[/quote]
Sigh….no all your proposal does is show the contractor has the funds to burn and buy xxx amount of Nubits (for which there are far easier methods), this proof of capital is enough reason for you to repay him 99% of what he burned and then give him a contract on a 1% collateral bases to pledge the funds he regained in BTC to Nu buyside support when Nu needs them.
Like I said you are replacing the 15% reserve we have to support the peg in dire situations with contracts on a 1% collateral basis.
Having a net 1% “profit” and effectively no reserve when the custodian doesn’t show up is not an reasonable tradeoff. It’s incredibly risky and such a strategy weakens the security of our peg. I cant imagine most shareholders taking the time to actually understand your proposal agreeing with it
[quote=“ttutdxh, post:101, topic:3169, full:true”]
I don’t see why executing a NSR auction would take more time than executing a BKS collateral.[/quote]
The difference being that when we auction of my BKS the loss of value due having to auction them in a rush will not be Nu’s loss but my loss. Unless we are forced to sell BKS for so low it actually doesn’t cover the hedge anymore, this is the only risk Nu has in my proposal. This contrary to auctioning off NSR which will be shareholder loss and the first line of peg defense when contractor doesn’t show up in your proposal. I know you have 0 faith or maybe I should say minus 34983498348 faith that BKS actually has any value but we’re not going to see eye on eye on that one.
[quote=“ttutdxh, post:101, topic:3169, full:true”]
That is fundamentally false. There is no difference, only the certainty of the value of the collateral.
In DR the debt is from the custodian to Nu and the collateral is burned NBT that is worth exactly 1% more, and can be recovered safely.[/quote]
Having burned Nubit as collateral in a time where Nubit demand declines is inherently useless. What do you think our customers will say when they try to sell their Nubits but there is no backup fund cause your contractor didn’t show up.
Hence why the collateral is 100>% shareholders can even vote on what ratio they are most comfortable with.
Or we could just trade our T4 for a contract on a 1% collateral basis instead because clearly that is a risk free strategy…………….
[quote=“ttutdxh, post:101, topic:3169, full:true”]
He is being paid for that. He should take his own decisions. He risks losing the interest and the collateral. Nu don’t care.[/quote]
Your kind of forgetting the part where we actually needed those funds to prevent the peg from braking, but I guess Nu doesn’t care about that either. Hey it’s not like a broken peg would maybe hugely negatively impact our business now would it…………………
[quote=“ttutdxh, post:101, topic:3169, full:true”]
If he took that risk he will pay the consequences, only he will lose money. Nu won’t.[/quote]
Yes a 1% profit is a clear and obvious desirable outcome for Nu, I mean it’s not like the RESERVE is actually important right? Doesn’t really matter whether it decides to show up or not if it doesn’t we get that sweet 1% profit instead of the emergency reserve fund that we had earlier. Obvious win for Nu………….I mean who cares about the peg anyway.
Maybe it’s time you start considering the actual purpose of our T4 reserve, if you cannot understand that its meant as backup to prevent the peg from braking in times of declining demand in Nubits then it’s pointless arguing with you.
How about you find these persons first before we are actually considering DR. How about this why not support Nusafe (which can be operational today) and then when you have actually found liquidity providers for DR + it gets shareholder votes we can replace Nusafe (which can be terminated by shareholders at any given time) with DR.