Liquidity Operations

[jooize]

2017–04–12

Daily move to equilibrium this week: 183 USD in BTC
Move to equilibrium in BTC: 0.15123
NSR sold: 630125

[Cybnate]

This is just the latest confirmation of a trend toward lower NSR sales that has persisted for around 5 months.

It looks good, but you will have to admit that this is mainly driven by the dramatic rise of BTC in the last 6 months. I hope we can some other positive indicators too soon. The NSR share price is still relatively low from a long-term perspective. The recent jump is positive but doesn’t seem to be persistent.

[cryptog]

my slack calendar says that today was the day predicted by @Phoenix for resuming the buybacks…

[jooize]

2017–04–13

Daily move to equilibrium this week: 183 USD in BTC
Move to equilibrium in BTC: 0.15320
NSR sold: 612800

[cryptog]

a few months ago @Phoenix said that nushares buyback would resume today. how far are we?

[jooize]

Do you mean as an estimate by trend, a belief of his, or decision? I only recall these threads with discussion.

February 2017:

[Poll] When do you think the next NuShare buyback will happen?

Question: When do you think the next NuShare buyback is most likely to occur? less than one week from now between a week and a month from now between a month and four months from now between four months and twelve months from now more than a year from now NuShare buybacks will never happen again 0voters Show results I thought it would be interesting and instructive to see how community opinion on this very important question has changed in the three months since the poll was initially …

November 2016:

[Poll] When do you think the next NSR buyback will occur?

With a total money supply of only 173,000 US-NBT, there is little room for the money supply to decrease further. We have already raised about $600,000 since July. We only need an additional $69,000 to fill our tier 1 to tier 4 reserves to their mandated level, after which additional sales of US-NBT or CN-NBT will go to NuShare buybacks, less additional reserves requirements (a little less than 50%) and expenses going forward. Question: When do you think the next NuShare buyback is most likely …

[cryptog]

an estimation from phoenix but i need to find where he said that.

[jooize]

Okay, you don’t need to quote that, but hey @Phoenix can you post an updated graph of NuShare sales that shows estimated point of buybacks at current trend?

[jooize]

2017–04–14

Daily move to equilibrium this week: 183 USD in BTC
Move to equilibrium in BTC: 0.15443
NSR sold: 482593.75

BTC Poloniex Esko → Esko

[Phoenix]

my slack calendar says that today was the day predicted by @Phoenix for resuming the buybacks…

I dispute this.

[Phoenix]

@Phoenix can you post an updated graph of NuShare sales that shows estimated point of buybacks at current trend?

Yes, but I don’t have time right now.

[Phoenix]

NSR sold: 482593.75

This is yet another record low in daily NSR sales, for the series of NSR sales that began in July. The trend toward NSR scarcity continues.

[cryptog]

[Poll] When do you think the next NuShare buyback will happen?

Now, to the question of when they will occur: Over the last 3 months, the deviation from equilibrium has moved toward equilibrium by an average of around $4000 each week. With the deviation a -22,000 right now, if current trends persist (and there is no particular reason to think they will), NSR buybacks would begin in 6 weeks.

This was written on 02MAR17 here: [Poll] When do you think the next NuShare buyback will happen?

So how accurate your simulation was?

[jooize]

Not accurate, as he warns it probably wouldn’t be. Nobody can be expected to predict that. There’s still value in it, and I’m curious about an updated estimate.

[cryptog]

agreed. do we have any concrete idea about how far we are compared to equilibrium? my understanding is that we are buying back nubits by issuing nushares (well we are building up a reserve) but when the reserve has reached a certain point we would stop. when would that be?

[jooize]

I’ll post updated supply, reserve, and equilibrium figures soon. Let’s try playing with those later. I may have to continue with that tomorrow though.

[cryptog]

tks. looking forward to it.

[jooize]

2017–04–15

Daily move to equilibrium this week: 194 USD in BTC
Move to equilibrium in BTC: 0.16511
NSR sold: 550366.66666666

[jooize]

2017–04–16

Daily move to equilibrium this week: 194 USD in BTC
Move to equilibrium in BTC: 0.16441
NSR sold: 469742.85714285

[jooize]

With $19,040 to be raised at the rate of $194 per day, we’d reach equilibrium in just under 100 days. The daily amount is 1% of the deviation from equilibrium and adjusted weekly, meaning with NuShares sales only we’ll approach equilibrium slower the closer we are.

Assuming no expenses, NuBit sales, and reserve asset price difference, the following happens.

As long as the NuShare remains above zero value (currently 35–36 satoshi), we’ll raise $1,358 this week. Tier 1–4 reserves were last Friday $56,526, so next Friday they’d be $57,884, making the daily move to equilibrium $181.

Sales of NuBits increase Tier 1–4 reserves and of course the amount in circulation. Expenses in BTC directly reduce Tier 1–4 reserves. Expenses in US-NBT increase amount in circulation.

NuShare buybacks require NuBit sales. We work toward increasing confidence in our operations and the attractiveness of NuBits. I’m glad to see the support in the NuShare market.