What are the costs of an increased ratio, aside from greater volatility risks in the assets we hold? There is very little marginal cost to increasing the ratio; we are not storing gold bars in a vault that require expensive physical storage.
I would propose a 67% reserve ratio for the next few years, meaning we have over two-thirds coverage on all outstanding NuBits. The reserve should be diversified into the top 5 cryptocurrency assets at any given time to ensure we are protected in the event one collapses in value or has a security issue. The reserve would not be filled to 67% through offering parking rates, but rather gradually approached as we sell more NBT or other assets. As a simple example, if we have 500,000 US-NBT outstanding and $100,000 in reserve, we only have a 20% reserve. If we eventually sold $500,000 worth of CN-NBT and an additional $75,000 worth of US-NBT, we would then have a $675,000 reserve for $1,000,000 worth of liabilities, a 67.5% ratio. The 0.5% excess funds would be used for buybacks on NuShares.
I intend on supporting your motion @masterofDisaster provided the reserve ratio is robust enough, thank you for introducing it.