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These days it becomes clear that without a credible revenue stream Nu is not going to get out of its current situation.
But exactly how much revenue does Nu need? to stay alive? to develope? Let’s review Nu’s expenses because to balance the book, the revenue has to pay for the expenses
stay alive cost
Nu can be kept alive with very little cost.
Acquire reserve for liquidity provision. Nu can have a fully backed peg now at $28k/640k = $0.04 without external funding.
Park interest cost. (this is not cost, but increase of liability) All parking premium Nu has paid in the last 1,5 years and will pay so far is 10k.
liquidity operation contractors
- pool managers
- gateway managers: @masterOfDisaster @Cybnate $129/3mo/Pybot @zoro @nmei @huafei
- FLOT members. @cryptog, @Dhume, @dysconnect, @masterOfDisaster, @jooize, @mhps, @ttutdxh, @woodstockmerkle 435nbt/90day/person @crypto_coiner @Cybnate $~200/90day/person
service cost: server rental
- the blockexplorer
- website, forum
- alix
- NuDroid servers
service cost : maintenance
- the blockexplorer
- website, forum
- alix
- buyback calculator @mhps 440 nbt/3mo
- NuDroid servers
Liquidity provision cost. Nu pays typically $10k/month to liquidity providers. Nu paid 6% - 9% per month interest to LPCs to provide liquidity, and pays 1% for pool managers.
- NuLagoon
- Liquidbits
- NuPond
…
BTC volatility is a risk to Nu’s reserve in btc. It’s not a unusual to lose 50%.
Exchange default risk is about 4% a month on T1 and T2.
So by far the biggest expenses is in paying liquidity pools. the biggest risk is btc volatility
Minimize expenses:
Liquidity cost reduction:
With a 34btc budget Nu cannot afford pay for exchange risk and btc volatility risk to LPs… Nu will take the risk itself by using gateways to hold the peg until Nu has more resource. This will also save cost on pool managers. This alone will cut 90-95% Nu’s expenses.
one gateway per exchange is enough to have a peg. one exchange is enough. FLOT should have at least 5 persons. blockexplorers, cointoolkit, website and forum alix can have 2 person to maintain. so that is $1000 a month expenses, that can still be reduced.
BTC volatility risk reduction:
Before Nu can dramatically reduce btc volatility risk (e.g. by using the gateway with a usd reserve or NuSafe), Nu can have most of its operation in NBT/USD. This will reduce btc risk to 0.
development and PR cost
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JordanLee used to say development cost was $10k/month, but in the last ? months it was 3k/mo. But I assume most part of it is in B&C ?
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NuDroid
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NuBox
Anyway Nu doesn’t have pressing needs to have a lot of development in order to stay alive.
- PR cost, throughout Nu’s life was $10k. @tomjoad, who was the PR manager could comment on that?
recruiting
- 10% referral fee on eleven contract compensation
summary
Just to stay alive, Nu needs ~$1000 / month, most of which is paid to community members, who could probably accept NSR.
I should have bought six months of server but I had hopes for situation to improve.