This is to inform shareholders that the current executor of this account will cease providing buyback services as of the end of NSR Buyback #16, which is expected to be the week of January 11, 2016. The final date for services rendered will be Sunday, January 18, 2016.
Shareholders should consider electing a new executor in the coming weeks if they would like buybacks to continue past that date. Given the significant funds involved, we would recommend electing someone who has earned the widespread trust of the community. A FLOT team member may make sense to minimize the coordination required, or shareholders might prefer someone neutral.
After extended experience these past few months, we would suggest shareholders also consider making the following improvements to our buyback operations with whomever is the next executor:
Shareholders should request significant collateral from the executor now that buybacks have approached $20,000 per week. Collateral that is external to our system (BTC, LTC, etc.) is most desirable, but a significant enough amount of NSR would be acceptable as well.
The executor should not use the spot price at the time of placing the market order to determine the market price used for buybacks. We have noticed significant trading activity around 00:00 UTC each day as traders attempt to increase the price to reduce the number of NSR they need to sell for the available BTC. This is especially prevalent when the spreads between buy and sell walls are large, as a small amount of NSR purchases can increase the price significantly.
To date, we have minimized this problem by waiting minutes or hours for a lower BTC price to emerge closer to the approximate daily average, and then setting our buyback orders.
An ideal solution would be for the new executor to determine the 12- or 24-hour weighted average price on Poloniex, and then use that figure for the buyback market price each day. So, if over the previous 24 hours there was 1 NSR sold at $1, 5 NSR sold at $2, and 4 NSR sold at $3, the market price for that buyback day would be $2.30.
While the records of buys/sells are very public on each exchange, shareholders should consider asking for more detailed reporting on this forum to encourage transparency. It has become apparent to us that “skimming” off the buyback funds would be quite easy if shareholders were not paying attention to the exchange transaction logs. We assure shareholders this has never occurred under the current executor.
Shareholders should consider electing someone with a higher Trust level on Poloniex if possible, to expedite withdrawals.
All share buybacks should move to B&C Exchange once it is operational, to encourage trading volume.
We will work with whomever is elected as the next executor to transfer over this forum account and discuss best practices to maximize the number of NSR purchased for shareholders each week.