As Chief of Liquidity Operations, it is my responsibility to determine the composition of our tier 4 reserves, absent any specific instructions from shareholders on our blockchain.
There are many factors to consider as the composition of the reserve is determined. The stability of the value of the assets matters. Reducing counterparty risk matters a lot. Diversification is also helpful. There are a variety of values which I don’t have time to detail here.
Right now BlockShares for B&C Exchange seem undervalued at $0.45. Having Nu own some BlockShares is not only likely to increase the value of the tier 4 reserve, it will give NuShare holders a specific financial stake in B&C Exchange. This is expected to increase cooperation and cohesion between the two projects: Nu will own some of B&C and B&C will own some of Nu. Each will have an interest in the success of the other.
We will initially target a BlockShare allocation of approximately 1% of the tier 4 reserve, currently valued at $855,197. @jooize please begin purchases immediately by posting an offer to purchase BlockShares for $0.45. I will adjust the price as needed to fill the allocation.
For the sake of diversification, we will also begin allocating a small percentage of the reserve to Ether. Specifically, the Bitcoin Cash portion of the reserve will be converted to Ether over a 6 month period. Each month, near the beginning of the month, a proportion of the Bitcoin Cash held will be converted to Ether. Each month, one-sixth of the amount of Bitcoin Cash originally held in the reserve shall be converted, so that the conversion is complete in six months. Currently, Bitcoin Cash consists of about 4% of our tier 4 reserves.
Less than $2,000 of the tier 4 reserves consist of Dotcoin and Stellar Lumens. These were given to us (not purchased). All Dotcoin and Stellar Lumens should be converted to Ether at the earliest convenience of the Manager of Liquidity Operations (@jooize).
This means at present values, we are headed toward a 4.2% allocation to Ether and a 1% allocation to BlockShares.