2017–03–22
Daily move to equilibrium this week: 228 USD in BTC
Move to equilibrium in BTC: 0.22783
NSR sold: 1340176.47058823
BTC Cryptopia Gateway woolly_sammoth → jooize
Everyday, there is only 0.15~0.25 BTC sold, I guess it’s robot not real person, so your liquidity model fails. When the sale is low, you say the NSR inflation rate is low, good news, when sale is high, you will say the liquidity engine works fine, also good news, everything is good.
Is it the reality?
I think you are afraid of admitting your design has problems. There are three underestimation from you about the potential public customers.
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You underestimate the public’s IQ when advocating the parking mechanism, you think the customers will rush headlessly without questioning where the extra money come from to pay the high parking rewards. The reality is most ordinary IQ customers won’t park.
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You think people will rush blindly to buy the very cheap NSR and speculate the price so that the liquidity engine gets its fuel, again you underestimate their IQ because they won’t buy a infinite supply crypto.
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You underestimate the circumstance, you think this is a big community, in fact there is always less than active 30 persons here, and Tether will probably deny/ignore your cooperation because people only like to ally with strong party.
We know you are stubborn, very stubborn, but if you refuse to listen, failure is the only result because you are not so smart as Satoshi. The community is being destroyed by your stubborn.
@Sabreiib, no doubt you feel badly about your financial losses that occurred due to the misconduct of the lawless authoritarians that infiltrated the ranks of the custodians. So you look for a reason to justify your feelings. This forum community, many of whom were those misbehaving custodians, have a motive to shift blame away from themselves by implicating the fundamental design of the network. Either it was their fault, or the fault of the design. They are pushing the narrative that the design is faulty to avoid the blame they so richly deserve.
Before the misconduct of the custodians, who illegally locked down funds they were under contract to make available, people said NuBits were bad because we couldn’t buy all them back for $1. After the illegal default perpetrated by a handful of authoritarian custodians, we bought back over 85% of all NuBits in a short period of time, leaving very little doubt that we can buy back every NuBit. We not only maintained the peg after the misconduct, we increased the value of NuBits 400%. We did this with a system badly damaged by the misconduct of some of the custodians, functioning with at most, 20% capacity (due to a massive reduction in market cap). It was still enough. There was tremendous ample peg supporting capacity in the system. It has been expensive for Nu to buy back almost all of its NuBits. It wasn’t the best place for us to spend our limited resources. It does, however, provide powerful evidence of the robustness of the liquidity engine.
Currency hyperinflations have occurred dozens, if not hundreds, of times throughout history. NuBits hyperinflated from May 27 to late June. But then one of the strangest events in monetary history occurred just after that. Despite the panic, despite the loss of confidence in NuBits, we were able to quickly reverse the hyperinflation and restore the currency to a full 100% of its previous value. I know of no precedent for this. Nothing like it has ever occurred before. It shows the incredible robustness of the mechanism that Nu uses to keep its peg. Misbehaving decentralized liquidity providers will continue to try to deflect blame from themselves and onto the design of system, but the results of our experiment are very clear: the economic model proved to be a profound success, a phenomenal monetary invention, while we had problems in our innovative, decentralized control of funds. Funds simply didn’t move as they were supposed to for a short period of time. We have fixed that. Now let’s move forward with the promotion of this incredible economic innovation.
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Listen to what? The destructive and irrational demand of the authoritarians to quit and give up, thereby destroying even more economic value? I mean, really, my opponents are saying nothing more than this. They have nothing to offer, nothing to create, nothing to give. They are destroyers. They are angry people who just want to vent. I want to create. With the help of others, I have created a phenomenally robust method of providing a blockchain based, decentralized stable currency. It is an accomplishment of which I am extremely proud. It is unfair to deny that is what we have done here. Some people are denying this to deflect blame from themselves.
3 Likes
2017–03–23
Daily move to equilibrium this week: 228 USD in BTC
Move to equilibrium in BTC: 0.21777
NSR sold: 1281000
I don’t think either side is innocent, I believe both sides have problems.
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Many decentralized custodians also support partial reserve and buyback in the past and someone fled with Nu’s BTC. In fact I debated with them a lot during 2014-2016.
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But this doesn’t mean Nu’s model is perfect, when I suggest Hayek’s mechanism (short term lending and anti-inflation), I am not supporting your opponents because only 2 or 3 of them are Hayek fans.
Yes, I’m sad about the financial loss, but I’m more eager to implement Hayek’s theory.
The liquidity engine is successful in repairing the broken peg, but Hayek’s method is better, not only in crisis peg restoration but also in future development. without share sale (price oppressed).
The centralized liquidity providing must be temporary, in long run, the direction must be decentralized, our first decentralized trial failed, it’s because of bad method not the big direction. If shareholders pledge their own NSR and borrow NBT from protocol, the decentralized LP is feasible.
@phoenix, there are all kinds of shareholders, some are short sighted, some are wise, some are general, some are selfish, some have good education, some barely read english. I don’t hope all the shareholders become able people, it’s totally unrealistic.
It is your duty to design a system which makes full use of their instinct to drive your system to be successful, they are an awkward squad, so you’be better give up such belief --" they are incompetent, so I have to do work by myself." You need to design a competent system for those incompetent/competent people, otherwise you fail even you do all the work correctly by yourself.
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It all comes back in developing the right incentives to steer shareholder behaviour into the desired direction. Once the incentives are right they will come, competent and incompetent but it won’t matter. This is a good example on how it might work:
Without demand for NBT, NSR will continue to be suppressed as the cost of running the network exceed the sales of NBT.
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This view is probably pessimistic. The inflation rate for NuShares is comparable to the Ether inflation rate or the Bitcoin inflation rate around 2013, having been calculated to be trending toward 16.6% when I did the calculation a couple days ago. So, even if we didn’t sell any NuBits, there is still no more downward pressure on the NSR price than with Ether or Bitcoin on account of expansion of the circulating supply. We can only hope the NSR price is “suppressed” the way the Ether price has been. In the hypothetical scenario that we don’t sell any currency in the coming months, then our funding mechanism is quite comparable to Ethereum’s, with the development of Nu and Ethereum both being funded selling a small trickle of their variably priced, scarce asset.
I think we will sell NuBits. 25% return in 6 months is a compelling reason to buy and park them. We need to get the word out and promote them, especially by developing relationships with exchanges.
I think some people involved in the network worry that this offer of interest looks very ponzi-ish. While the view is understandable, it is mistaken, probably as a result of overlooking some important facts about our situation. First, we have been around for 2.5 years, and the interest rate we offered has been zero the vast majority of that time. The notion that it is temporary is very credible. We need to re-establish a baseline of NuBit use to create synergies that will help us grow more. The notion that when a business first offers a product or service, it may have to do at a loss to establish a market share is widespread and commonly accepted for good reason. That is what we are doing, and it is something countless successful businesses have done.
Anyone want to help, perhaps for compensation?
1 Like
2017–03–24
Daily move to equilibrium this week: 228 USD in BTC
Move to equilibrium in BTC: 0.2334
NSR sold: 1458750
BTC Poloniex jooize → jooize
BTC Cryptopia jooize → jooize
2017–03–25
Daily move to equilibrium this week: 312 USD in BTC
No sales because of Poloniex issue.
2017–03–26
Daily move to equilibrium this week: 312 USD in BTC
No sales because of Poloniex issue.
2017–03–27
Daily move to equilibrium this week: 312 USD in BTC
No sales because of Poloniex issue.
2017–03–28
Daily move to equilibrium this week: 312 USD in BTC
Price of NSR reached 47 satoshi. Sold remaining NSR on account at 38–39 satoshi.
NSR sold: 655657.2699409
BTC acquired: 0.25422778
BTC = 1033 USD
1033 * 0.25422778 ≈ 263
BTC Esko → Cryptopia Esko
2017–03–29
Daily move to equilibrium this week: 312 USD in BTC
No sales because of Poloniex issue.
BTC Esko → Cryptopia woolly_sammoth
2017–03–30
Daily move to equilibrium this week: 312 USD in BTC
6 * 312 = 1,872
1,872 - 263 = 1,609
Move to equilibrium in BTC to catch up week: 1.55582
NSR sold: 8643444.44444444
BTC Poloniex Esko → Esko
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500BTC trade volume… BTC acquired: 0.25422778???
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The issue with Poloniex was they didn’t process deposits, so that was at least the best use of the remaining NSR on the account. In any case policy is not to sell more than the move to equilibrium, so more NSR on exchange wouldn’t have made much of a difference.
1 Like
2017–03–31
Daily move to equilibrium this week: 312 USD in BTC
Move to equilibrium in BTC: 0.28751
NSR sold: 1513210.52631578
BTC Poloniex Esko → Esko
2017–04–01
Daily move to equilibrium this week: 242 USD in BTC
Move to equilibrium in BTC: 0.21813
NSR sold: 908875
1 Like