So we all know the situation Nu is in at the moment and the dire need to raise funds to defend whatever is left of the peg. We also know that pretty much all funds raised for B&C Exchange development are stored in Nubits hence we BKS holders have a huge interest in making sure Nu stays solvable. I propose we dilute BKS by about 5000-10000 BKS (~2.6-5.2% dilution) through a motion grant and use these BKS in a blind auction at which we sell them for 5 or 6$ minimum to the highest bidders (with a minimum of at least 50 BKS to be bought per bidder). We then use these funds to buy NuShares at a pre-established price (I suggest 100 satoshi’s) from Nu. Nu can then use these funds to defend the peg and get liquidity going again.
The bought NSR will be held in a newly formed multisig group of BKS shareholders. If all goes well we will have contributed to keeping Nu solvent (and thereby also saving our development funds from Nu default) and have bought a lot of NSR at a favorable price. Later we can distribute these NSR to BKS holders as dividend. The added benefit of this if NuShare price returns to previous stable levels (500-600 statoshi), BKS holders can look forward to a nice return on their investment. I would call this plan a high risk – high reward plan. I am writing up a plan how to move Nu forward for the coming weeks in conjunction with this plan.
Nushareholders already got the 40% BKS which equals to 400,000USD, why would we give them extra 60,000USD? Because you are a generous charitarian ???
I may vote for giving out 10% of B&C’s profit to Nu in future, but not in this way. If they have any conscience, they should donate their BKS to help themselves. Nushareholders have been spending their money without restraint since Nu launched, to be frank, their financial behavior is disgusting, and deserved to today’s situation.
We’re not giving them 60,000USD we’re buying NuShares for that money at a low price. While I agree that its risky putting even more eggs in the Nu basket (seeing as our development funds are almost 100% in Nubit as well) the tradeoff is we can make a very profitable investment on top of protecting our own development funds. I feel this is the best strategy in a bad situation. If this plan succeeds we should see high returns on our investment on top of saving our development funds.
I agree with you that clearly the buybacks have been a disaster in hindsight but we have to make the best of the situation as it stands. Saving Nu is very much in the interest of BKS holders.
Saving Nu requires around 400,000USD, while 60,000USD is far from sufficient, B&C has no such ability nor the obligation to give them so much money, especially Nushareholders already have 400,000 USD value BKS in their hands. They are as rich as, if not richer than us.
It’s the same for me, I wasn’t an NSR holder when I bought BKS I bought every single one of my BKS same as you. Now the problem we are faced with as BKS holders is not just that we need Nubit for our exchange (although we possibly could replace them with another stable crypto currency) but also that our development funds are stored in Nubit. If Nu fails and goes under we lose almost all of our development funds as well. Now hopefully we can prevent such a scenario and even profit it from it by buying up cheap NSR. Like I explained it’s a high risk, high reward proposal.
Come to think of it, converting so many collected bitcoins in nbt was a huge mistake in the first place. A dozen would have been fine, more w’d have been a liability but how many are we talking about here?
If so, nushareholder’s 75,000BKS in their hands can easily solve their own crisis, however, I am afraid majority of Nubits customers won’t come back when BTC price drops again, because they have memory. A damaged good is Nu.
Nu should payback all the debts and regain confidence from customers.
Those funds are not collectively held by Nu but by private shareholders. I’m all for Nushareholders pledging private funds whether those are NBT, BTC or BKC to buy more NSR and help Nu get through this crisis.
Yes, if Nushareholders don’t donate their BKS, let tragedy of commons happen. Isn’t the PoS advocated anti-tragedy of commons? Time to test their belief.
As I’ve said elsewhere, I’ll support this with my BlockShares. If Nu doesn’t survive through this, then B&C may go down with it. I’d rather risk a little of the BKS market cap than risk both Nu and B&C failing completely. It may still be possible to make it out of this. Our reputation will be damaged, but we can make the necessary changes afterward like raising the reserve. Hopefully this can hold us over until either Bitcoin reverses or B&C is released.
Instead of selling BKS for bitcoin, trading the bitcoin for NSR, then Nu FLOT selling the bitcoin for Nubit, why wouldn’t they sell BKS for bitcoin, and use the bitcoin to by Nubit on the open market (at a significant discount right now)?