There has been a suggestion that I ask that a certain profit level be guaranteed by shareholders instead of asking for a specific sum of NuBits, such as 2000 for 60 days as I did above.
I am amenable to that. I would like to get some quick feedback on which compensation agreement shareholders prefer.
The change in service I am proposing is the same: I am offering to decrease the spread to 0.5% while continuing the operation just as it has been otherwise. Compensation from NuPool and shareholders will be added to funds used to provide liquidity.
Flat fee compensation
One option is to pay me 1500 NuBits for 2 months of service, to be paid by FLOT or shareholders after service is rendered.
Guarantee minimum profit
The second option is to guarantee a minimum profit of 3% per month, compounded monthly. The calculation used to determine profit would be the Bitcoin Price Adjusted With Pool Payments NAV, which I have been reporting regularly in this thread. After two months, the guaranteed return would be 6.09%, and 9.27% after three months. After more than a month the actual rate of return has been 0.02%. If it were still 0.02% at the end of the first 2 months, then either FLOT or shareholders must pay me enough to make a 6.09% profit, which would be 6.07% on the original 20,000 being used. In this example, that would be 1214 NBT. Payments would be monthly.
This will be guaranteed liquidity, meaning I will not remove the funds from the Poloniex order books for any reason, including a liquidity crisis. Not removing funds shouldn’t be confused with uninterrupted service. There have been two service interruptions due to unexpected server problems and one due to a NuBot failure already. I’m promising a 95% service level.
Please be aware I plan to terminate the operation unless I can get a 3% monthly return, either through shareholder compensation or trading profits. While returns have been non-existent so far, I expect they will pick up with Bitcoin volatility.
Which compensation model would shareholders prefer?