Ideal Liquidity Operations practices and policies

[cryptog]

1000 btc worth of NSR to do the nbt-buying and

I do not think we need to buy all nubits in circulation.
There must be a good chunk of holders that do not want to sell.

[cryptog]

@Cybnate’s plan to have it

here she talks about 50% reserves only.

[mhps]

I do not think we need to buy all nubits in circulation.There must be a good chunk of holders that do not want to sell.

That is true. but let’s say they are 50%. 500 btc is still a lot.

[ksmith]

Suppose the public then buys 1million NuBits, Nu will save the sales proceeds in the reserve, preferrably in 1m USD denominated tokens, so that the saved reserve doesn’t fluctuate in $ value. Now the market changes and the public wants to sell 1m of its NuBits. Nu just takes the nbt back and pay $1m with the reserve. The peg is not lost again.

Right now, the public will be buying at a price much lower than $1. In the future, if the market changes, the public will want to sell at $1. You will need more funds than you started with, and these funds can never be recovered.

[ConfusedObserver]

We let NuBits float for now with the understanding we are aggressively buying them and destroying them. This will push the NuBit price up toward $1.00 over time.

You do that by selling NSR to remove NBT directly from the market or receive BTC, that are used to buy NBT from the market.

As our plan is credible

This plan is not credible.
It lacks the revenue to continue once the peg was recovered.
You can continue with 100% reserve from then on and still go bankrupt, because you can’t cover your operational expenses.

No buy walls are needed right now.

I can agree with that - at least in parts.
Buy walls at a quite low price can help buying NBT from the market and removing debt.
It will be more efficient than buying NBT from the order book for two reasons:

• the maker fee (0.15%) is lower at Poloniex than the taker fee (0.25%)
• you get NBT at a cheaper rate

You try to position yourself as “Chief of Liquidity Operations”, but seem to have lack of knowledge in very basic parts of that role.
And you have a flawed understanding of how to run a business.
You are in my opinion not the ideal person to fill that role.

If you want to provide a credible plan, it needs to include how to run the business without continuously selling NSR or NBT to cover the costs, as that can be identified by the least capable economist as ponzi scheme.

@Cybnate with the help of @creon showed how Nu can be transformed to a profitable lending business by introducing a coinage dependent transaction fee.
This will not only provide a means to recover the peg and to get rid of the debt, but create ongoing revenue as well.

Each of them are obviously a better choice, because they understand economics and are able to use that knowledge.

[mhps]

In the future, if the market changes, the public will want to sell at $1. You will need more funds than you started with, and these funds can never be recovered.

That is understood and that is the hardest part.

[Passed] Temporarily cap NBT supply with full reserve

To raise a100% reserved peg, the reserve has to increase at the same rate.

[crypto_coiner]

@Cybnate with the help of @creon showed how Nu can be transformed to a profitable lending business by introducing a coinage dependent transaction fee.This will not only provide a means to recover the peg and to get rid of the debt, but create ongoing revenue as well.

Again, that sounds attractive –
What is this lending business about?

1. Business model
2. Revenue projections
3. long term Vision

[ConfusedObserver]

Some people were confused about the minimum price, thinking it was in US dollars.

How do you know?
I haven’t found such an information in the forum.

What I do understand is the NuShare price is a speculation on Nu’s capacity to sell NuBits in the future.

This is what makes it clear that you intend to continue with your Ponzi Engine.
NSR price should be a speculation on Nu’s capacity to make revenue in the future.

[cryptog]

@Cybnate with the help of @creon showed how Nu can be transformed to a profitable lending business by introducing a coinage dependent transaction fee.This will not only provide a means to recover the peg and to get rid of the debt, but create ongoing revenue as well.

So if we adopt such a model, Nu would radically pivot from providing NuBits for free to providing NuBits for a fee.
In that case, what should be a reasonable daily fee of such a service?
And isn’t a big problem with holders?
I mean when I hold 100 USD today, it is still 100 USD in one year.
(I am discarding the inflation part because NuBits being pegged to USD does not have any advantage over USD).
It is very legitimate to ask what would be the reaction of the holders?
Would they be like: “no way!” or rather": the fee is reasonable and after all paying for the privilege of using a stable crypto is not so unnatural"?

[Phoenix]

It lacks the revenue to continue once the peg was recovered.You can continue with 100% reserve from then on and still go bankrupt, because you can’t cover your operational expenses.

There are so many sources of revenue available they are nearly innumerable. The talk about no revenues being available is really stupid, considering so many sources of revenue have been identified and discussed on this forum. I can’t think of a line of business with better prospects for revenue. Even Facebook found revenues. That was difficult. There were plenty of naysayers like you in their early days who didn’t know what they were talking about. We won’t have even 5% as much trouble finding revenue as Facebook. What we need is credibility in our product, and we will be flooded with revenue. We are a startup, however, and that requires investment. We have to demonstrate ourselves worthy of investment. Abandoning our main business operations in a disorderly and unplanned manner as we did is the worst way to court that investment. It is that unpredictable behavior that is our biggest problem at this point.

NuBits themselves are a depreciating liability. That is really important. We get transaction fees, which shareholders can and should raise. Volume dependent transaction fees are coming. There are trade spreads. There are lost NuBits. So many promising avenues that have already been discussed at length.

Sorry, saying we should destroy NuBits holders for lack of revenue is just incredibly stupid. I stand amazed.

All the idiots saying we should break our promises to customers because we don’t have the kind of revenue they want right now should leave the forum as far as I am concerned. You are no friend of NuShare holders. Like we are going to have more revenue by acting in the way we have the last month. Building trust and credibility are paramount, not making tons of revenue right now. But these people aren’t identifying ways to get tons of revenue. They are suggesting that we shut down operations until we get more revenue. The stupidity of this is truly amazing and I am weary of indulging it.

To those who insist on bringing suicidal values to our network, just please stop. You look like idiots.

[creon]

Jordan, you seem to understand the concept just as well as liquidity operations. Sigmike already told us some stories about your ability to get into these things - maybe because you never show up in the development chat room just as you never did in this forum. In fact my proposal would allow for a 1 USD peg much sooner than your 10 cent NBT, because of the very basic game theoretical reasons already addressed in this thread.

No, I will not leave this forum and since I am a friend of the idea of Nu I am also a friend of Nushare holders. You however have proven on several occasions that you only want to enrich yourself and therefore I really hope you leave the forum and that you will stop trying to bring suicidal values to the network.

I think I don’t need to mention how you already look to shareholders and observers.

[mhps]

There are so many sources of revenue available they are nearly innumerable. T

Yet Nu couldn’t stay in the black.

You look like idiots.

Can I expect this person to care about his idiots’ interest?

[Nagalim]

Yah, fuck @pheonix, it’s either some random person just tying to get a bunch of nsr to attack the pos security of the network or JL being a big fat coward and hoping to squeeze a couple more dimes out of a network he crippled for his own perverse reasons. Either way, fuck that shit.

[Phoenix]

I understand that most active forum participants, up until now, have been liquidity providers. It should come as no surprise that scaling back decentralized liquidity operations due to incompetence is not a narrative or outcome these people are fond of. I am also aware a large percentage of shareholders are also decentralized liquidity providers. They are not inclined to support me in this effort to bring structure to liquidity operations because it eliminates their role. This is a very difficult political issue in our community right now. But it will pass. We are a business and we have to be as efficient and effective as we can, or die. Business isn’t forgiving. I believe the majority of shareholders will see my proposals are in their economic interest, and will support me soon, even though this change doesn’t please most active forum participants.

[Nagalim]

Good luck with that

[masterOfDisaster]

I am also aware a large percentage of shareholders are also decentralized liquidity providers. They are not inclined to support me in this effort to bring structure to liquidity operations because it eliminates their role

Is that what FLOT made with @JordanLee - eliminate his role? Did that hurt, @JordanLee?
Why am I asking @JordanLee, who is offline?
Is it because @Phoenix reminds me of him?
I don’t know.

Anyway - this is the last thing Nu needs now:

Right now our liquidity operations should consist of selling NSR at a weekly auction.

Dumping NSR on the market, before sound revenue schemes are on the horizon is selling NSR below value. That’s of course nice for people who want to buy NSR cheaply.
The thing is: there’s no reason to do it.
Nu still has BTC left (haha, 1:0 masterOfDisaster and FLOT!) to fund development anbd pay for expenses until Nu can make a new attempt.
There’s no peg that needs to be kept.
NSR sale now are pointless, wannabe Chief of Liquidity Operations!

No buy walls are needed right now.

I agree with this one. But please tell me why you advocate NSR sales, if you understand that buy walls aren’t needed right now.
Are you sure NSR sales now aren’t advocated, because an evil mastermind wants to buy them cheaply?
Oh, I have no proof for that, but on the other hand I have no idea, why NSR should be sold now.
Do you want to explain why Nu needs to sell NSR right now? Please go beyond NuLaw, if you want to be taken seriously.

So, if NSR sales continue, I would expect the most likely scenario would be a relatively steep ascent in the NBT price at first.

Not going to happen without a sound revenue scheme.
That’s why NSR sales mustn’t be done before the revenue schemes are just around the corner, for that would push the NSR rate up!
Someone wants to get cheap NSR and tries to push NSR sales right now…
But I agree that NBT rate will go up once there’s a reason for NSR rate to go up.

No NSR sale now! It just hurts the shareholders!

There are so many sources of revenue available they are nearly innumerable.

Why don’t you focus on them, if it’s so easy?

The talk about no revenues being available is really stupid, considering so many sources of revenue have been identified and discussed on this forum.

Bla, bla.

We get transaction fees, which shareholders can and should raise.

Go on dreamin, if you think that can cover Nu’s expenses.

Volume dependent transaction fees are coming.

Really? Please point me to that motion.

There are trade spreads.

I thought they are evil?!
I got treated horribly, because I advocated them.
Do you really want to make revenue from the spread?
That would be amazing news. And you would - at least in this sector - follow my lead

Sorry, saying we should destroy NuBits holders for lack of revenue is just incredibly stupid. I stand amazed.

Sorry, saying we should destroy future NuBits holders to save the current ones by continuing a ponzi scheme is just incredibly stupid. I stand amazed.
If Nu makes revenue, NuBits holders can get all their money back, but it will take time.
That’s what Nu needs to achieve: revenue and paying NBT holders back - not offering a band-aid solution and hoping for a greater fool.

To those who insist on bringing suicidal values to our network, just please stop. You look like idiots.

I only find one idiot here in the forum and I’ve read a lot more since my last post.

I believe the majority of shareholders will see my proposals are in their economic interest, and will support me soon

Then they have learned nothing.
It’s in their best economic interest to find revenue before they continue NSR sales.

And they should never ever trust an anonymous newbie with that much power, especially not if this newbie behaves a lot like @JordanLee, who really fucked a lot up.

[mhps]

Dumping NSR on the market, before sound revenue schemes are on the horizon is selling NSR below value. That’s of course nice for people who want to buy NSR cheaply.

Speculating motivation is fun but not productive. Let’s look at the numbers.

Standard and Core only asks to sell 0.5 - 1% of nsr coinbase a week. That is nothing compared with the 80% drop of market cap due to price drop. You last sentence above is also speculating that nsr prices is cheap. In general we don’t know that.

Anyway if we cap 0.5% dilution a week, it;s only 2% a month. We didn;t blink when we increase 10/700 = 1.4% of total NBT liability a month on liquidity provision. These are comparable scale of expenditure.

So I think Nu can afford to sell nsr to either get btc for development or rein in liability

[Nagalim]

To play devils advocate, nbt expenditure did not have PoS security on the line.

[crypto_coiner]

Someone wants to get cheap NSR and tries to push NSR sales right now…

possibly – but i urge other shareholders and recommend many new comers that are genuinely interested long term to purchase more shares too.

No NSR sale now! It just hurts the shareholders!

isn’t that necessary to burn NBTs?

[Phoenix]

In another thread I posted this comment about how I will conduct liquidity operations once elected:

Soon I will be publishing a Statement of Policy Intent for Discussion
to give an opportunity to discuss what I plan to make our short term
liquidity operations policy. The centerpiece of it will be purchasing
NuBits in the open market each day with 10% of our total tier 4 funds. I
will propose we also conduct NSR auctions and NSR sales on Poloniex
simultaneously. More details will be included in the Statement of Policy Intent for Discussion, which will be contrasted with a Statement of Policy, which is an order to conduct liquidity operations in a particular manner consistent with NuLaw. I will not release a Statement of Policy until properly elected, but everyone will know what it will be based on the Statement of Policy Intent for Discussion that will proceed it.

These plans still stand but a modification is in order considering the NuShare price is up around 300% over the lat six hours or so. We ought to rapidly enter the Poloniex market and sell NuShares held by FLOT NSR right now. I recommend 7 million NSR be transferred from FLOT NSR to @jooize’s Poloniex account for immediate sale. I recommend sell orders start at the current market price and be distributed from current market price to 20% above it. This will yield about 25 BTC at current market rates. Proceeds will be regarded as part of tier 4 reserves. 10% of total tier 4 reserves should be used to purchase NuBits on Poloniex each day. I recommend the NuBit purchases start today. This means @jooize should leave BTC proceeds on Poloniex so they can be used in the coming days to purchase NuBits. I recommend @jooize burn the NuBits purchased.

Liquidity is very good in NuShares at the moment with 56 BTC in trade volume over the last 8 hours. We need to use this opportunity to fill our reserve so we can keep funding the purchase of NuBits.

I don’t have the authority at the moment to order these actions completed. It is just a recommendation. However, it is legal according to NuLaw for FLOT NSR and @jooize to take these recommended actions.

@jooize and FLOT NSR, please comment on the proposed actions. @Dhume, @ttutdxh, @cryptog, @mhps, @masterOfDisaster