I would also be comfortable with a declaration about the conditions under which we give up protecting the peg. If this hypothetical situation exists as a potential future, as the white paper so clearly spells out, then what is the condition for it? What does it look like? If we don’t know the answer to that question, how can we avoid it?
If the reaction to the ultimate emergency situation is ‘every man for himself’ then we are already there. A PoS blockchain requires continuous human consensus and validation to exist, and as long as it exists it has value. This motion leverages that value on a periodic basis in time; existence through time is precisely what gives the blockchain its initial worth at a fundamental level. It then attempts to define a particular scenario in which Nu will seek to maximize the effects of that leveraging.
I don’t necessarily agree that shareholders will blow up park rates to infinity in any scenario. I don’t disagree with the triple digit numbers, but I’m unconvinced it will go much beyond that without drastic action being taken.
I’d be comfortable removing specificity from the motion in favor of more general text, however I would like there to be a declaration in our covenant about when Nu will give up on share dilutions as a means to protect the peg. And when we mention that, we need to assure our Bit users by telling them what happens. If we decide to simply drop the peg without devaluation, so be it, but let’s say that. Attempting to have these kinds of discussions in extreme circumstances just begs for manipulation and political corruption.
In my opinion, now we’ve talked about it at the very least. I also disagree that a well thought out monetary policy would harm the value of NuShares in the long run.
