Idea discussion : Selling NSR and NBT on openbazaar

Hello community!
I wanted to put down an idea that matured after a long period of operation and thoughts. @woolly_sammoth is to praise for the eureka moment, and also some member of the NXT community that showed me how their decentralised marketplace works :slight_smile:

Scenario :

We are tackling a multifaceted challenge.
First challenge (Nubits): We need to be able to keep the 1$ peg also against a volatile unit such as BTC (since the market requires it) . In the process we also need to avoid custodian losses, aka optimise the size of buy/sell walls to avoid traders to take advantage of it at the expenses of the custodians. However, at the same time we must be solvent and let “honest” users that holds a large amount of NBT to change it quickly at a fair 1$ price. At the same time we need to let people that wants to purchase a large amount of NBT (for reason different from selling them back and forth for profit from our bots) to do that at 1$.

Second challenge (Nushare): Possessing Nushare comes with a responsibility. When shareholders sells NSR on the open market means that they are selling to a completely unknown party. While this may or may not make a small short term profit to the shareholder, will harm the network long term. At the same time prospect shareholders are lining up for buying large amount of shares from JL, below market price.

We need to address both scenarios in an optimal way.

Problems :

  • Creating a centralised exchange where we control both NSR and NBT supply and prices, seems like the easiest option. However the community already discussed and dismissed this option as it will introduce a huge single point of failure : centralization. Moreover it will expose the network to regulatory risks no-one is willing to take.
  • Decentralized exchanges are on their way, but it won’t be untill later this year that we can start seeing something reliable.
  • The upcoming modifications to liquidity distribution in NuBot, will make impossible for anyone to quickly buy/sell NuBits in large amounts at 1$.

Solution :

One possible solution to the above scenario is using OpenBazaar to buy/sell NuBits and NuShares. While keeping part of their liquidity on open exchanges, custodians can host a OpenBazaar P2P shop where they offer their liquidity tier 2 at 1$ equivalent. By making tier2 liquidity available in a p2p market and with some automation and reporting, it will be possible to prove we are solvent also with large amount. It will also encourage real nubits adopters to come and buy while discouraging nubits opportunistic traders. It will be fully decentralised and privacy will be guaranteed by cryptography.

It allows current shareholders to partially liquidate their shares without affecting market price and screwing up the network, in case they have a necessity to either leave the network or partially diversify their holdings. It allows NSR buyers to get in touch and discuss with shareholders before buying.

The whole model is pretty scalable, and I can envision several NuBits or NSR shops co-existing, using a template we can edit together.

I honestly have no much experience with openbazaar, but I did talk with people at NXT that are using a similar approach to sell/buy assets. I may be completely wrong .

What do you think?


I like the idea of decentralized markets very much. But we can not forbid exchanges to install an NSR daemon and to provide a market for it, or can we?

i like it.
“forbid” is not even exists in NU vocabulary :wink:

Not at all. We should allow free markets to do their job while offering an alternative and preferable channel


What is a large amount?

It’s Arbitrary, I say 10k nbt should be a reasonable wall height

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Open bazaar released!
If I wanna sell my old laptop for BTC, I need to change my price frequently for BTC’s volatility.

A good chance for NBT/BKC.


I am drifting, but ever heard of (“P2P Trade System” on ethereum)

I don’t believe ethereum has a future because its philosophy is stupid: put everything in ONE blockchain.

The more apps on ETH, the quicker death of cancer: bloat.

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How does it compare with Bitcoin and OpenBazaar –
I would love if you could try OpenBazaar and safemarket

I’ll try both and check if they are useful for NBT/BKC.

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In general I agree.
But for Ethereum there might be a slightly different way.
Once Casper (I believe that’s the name for the Ethereum PoS algorithm) has replaced PoW, you should theoretically be able to split Ethereum into different parts - each of it being a part of the former whole, with interfaces between the parts where necessary, no?

Regarding selling NSR and NBT on Openbazaar:
did somebody already have a closer look at how Openbazaar works?

I like the idea. I will try it these days.

Don’t forget that this idea might be suitable to BitHalo too.

Would be nice to have them supporting US-NuBits on top of Bitcoin and Blackcoin.

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BTW I still can’t see the difference between Litecoin and Blackcoin even nowadays.

I can’t see BLK’s advantages in no way.

Blackcoin is POS, Litecoin is POW. Long term I would bet on POS as the more efficient protocol, just my thoughts.

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