I don’t throw around the ponzi accusation lightly, but nubits is the first crypto I have seen that fits the description.
Propping up demand by increasing future supply hoping to sucker in a greater fool with the promise of more unbacked assets.
Sooner or later you run out of suckers willing to hold out for increased future demand at any interest rate.[/quote]
He said NuBits is a ponzi, we need to clarify our profit model. This is really important. I’ll tell out one of mine
Custodians provide 100% reseve by puting all his/their FIAT income from selling NBT into building up buy walls.
Make profit from charging transfer fee. For instance, custodians sell wall is 1.02$ and buy wall at 0.96$, this assures Nu has profit after exchanges taking off their own transaction fee.
3)If profit is enough, we peg NuBits or other unit to 1$ buying power to offset the fiat inflation rate.
This solution may or may not provide good profit but it’s sustainable.
My another suggestion is that any custodian grant should be backed by his/their Nushare value which is kept by Nu system. If a custodian run away, his Nushares(several times of granted NBT value ) will lose and return to Nu sysytem so that we can make up for a loss.
In this way, we can assure that the issued NBT value is below our NSR market capitalization. Sounds like BTSX, but we vote for custodian to issue money, that’s the difference. Perhaps the NSR price drops after a custodian is granted for some NBT, but the buyers on free market will notice that and will not buy more NBT.
Only my two cents. Criticism is welcome.