First Dividend, Action Required: Withdraw NSR From Exchanges!

[Chronos]

@KTm’s most recent Grant Operations Report contains an approximate date of dividend: 21-Nov-2014.

This first dividend distribution will be approximately $50,000, which means that every 100,000 NSR will earn about $5 worth of PPC.

@KTm’s initial Custodial Grant Proposal outlines eligibility: “To be included in a period’s dividend payout, a Nu Shareholder must be in possession of their shares prior to the point 36 hours before the distribution was announced.”

The first distribution will likely be announced shortly after the associated motion passes. Track its progress here. If your NSR is on an exchange (BTER or CCEDK) 36 hours prior to the announcement, you may not be eligible to receive the dividend. If it is on an exchange at the time of the distribution, your dividend may be claimed by the exchange.

To ensure dividend receipt, you may wish to move your NSR to your local wallet at this time.

[pennybreaker]

Thank you for bringing this up. I had intended to provide a reminder about Kiara’s 36 hour rule, but it slipped my mind.

[lg15x]

@Chronos I talked with Bter’s service. She said Bter can help to distributed dividends to their customer. But they have not got any notice or information from Nubits team.

We need to have our Nubits team contact with them, then they can help to distribute dividends. Or else, if everybody withdraw NSR could cause high workload for all of us.

[Sabreiib]

That means they process withdraw manually. what a hard work!

[Ben]

A Peercoin dividend address is associated with each NuShares address (they are the same root, in fact, just encoded differently).

For an exchange to be able to get a dividend payment to someone who holds funds on the exchange one of two things needs to happen:

1. Each set of held NSR is in its own address on the exchange, so it is straight forward to export the priv key from the NSR address into the exchange’s Peercoin wallet and map that to the user’s Peercoin balance.

2. Each set of held NSR are communally stored in addresses. In this case the exchange would need to collect all of the Peercoin priv keys and import them into their Peercoin wallet. When the dividend distribution occurs they can deposit an amount of PPC into each holders account proportionate to the percentage of total NSR held on the exchange by the user.

The Peershares code can be used as a model to see how this works. @sigmike is the best one to qualify if there are important changes between the code.

The development team can work with the exchanges to understand how to implement a solution such as the two I described above, but it is my personal belief that it isn’t our responsibility to do it for them.

NSR held on exchanges are not capable of being used to mint by the holder (only the exchange), and therefore, cannot cast votes. This decreases the usefulness of those NSR existing on the market.

I don’t see a reason that the Nu product team should encourage it.

[lg15x]

Yes, you are right. But when NSR and NBT go to public, nobody can control who or when sell it and how to store.

If the exchange platform holds lots of NSRs, I think we should have sb. from dev. team or community talk to exchange platforms, let them know the importance of mint and vote. I think they can help if they feel it’s safe enough.

[Ben]

I’m not implying that we should attempt control what people do with their NSR. It’s their personal choice.

If exchanges want to offer it as a service for their users, we can advise them. But it is not in the best interests of the Nu community to actively make it something that is commonly done.

[Sabreiib]

So let’s set up our own OT exchange. Imagine that:

In 2016, 12 NSR holders(each with 5million NSR) build up a voting pool where they are not only hosting an exchange but also minting in the cold minting way.

Crypto vs NBT pairs are provided in this voting pool and FIAT/NBT pair on bter/ccedk etc.

Actually we can build up as many voting pools as we can, maybe twenty pools. Open transaction is semi decentralized exchange and the more pools, the more decentralized.

Those NSR holders make profit by charging transaction fee and they usually also custodians who can pay dividend from exchange business revenue,

[Ben]

I’m not opposed to that course of action. OT isn’t finished, at least it wasn’t when I looked recently, so we would need to start to plan now for a future when it is ready.

[Sabreiib]

On their forum, they said Dec. 2014 is the first version release date. Now we can prepare for it

1. make NSR/NBT multisign supporting, I guess @sigmike familiar with the compatibility.
2. Cold minting for NSR. We cannot risk on being attacked as an exchange host where NSR private key stored there.

Our biggest advantage is NBT stability, with this killer feature, we can build up not just exchange for coins but even for “eBay/amazon” in future.

Why NSR is needed to host voting pool is that we wanna make sure every server provider is NSR holder and share common interests with each other. All of them are Nu supporters and not malicious one who can get benefit by attacking/destroy the voting pool.

[willy]

1. make NSR/NBT multisign supporting, I guess @sigmike familiar with the compatibility.

The current client has multisig. Does your idea require improvements?

2. Cold minting for NSR. We cannot risk on being attacked as an exchange host where NSR private key stored there.

How would that benefit the voting pool? This would be really bad for all kinds of votes or the voter, depending on where you’re going with this.

NSR minting in cold storage would require a fixed voting table when you freeze them. In the best case those would only be useful for a couple of days, maybe weeks, but not in the long haul.
You would need to load/unload your NSR everytime shareholders action is required. Or do you imagine something else I did not get? Some kind of voting key that can only change the voting parameters?

Mh.
1 key for spending
1 key for voting

[Sabreiib]

Hi willy, there are some other small modifications to fit open transation. Very detailed I can’t remember.

If cold minting hinders Nu voting, that’s a real issue.

I suggest NSR needed for open transaction because there are three merits

1. make server providers share common interests, thay are all in same boat and the public feel comfortable believing they are large NSR holders and will try their best to improve Nu rather than doing sth bad by collusion.

2)those NSR on voting pool must be used for minting so that minting is encouraged.

3. exchange fee revenue is important for Nu ecosystem, those OT NSR holders are potential custodians in future so that they can pay dividend from revenue. Remember that any one can build up OT server which may has nothing to do with Nu at all. But for us, the NSR-OT is kind of our official site/service of Nu network.