Nsr surge again!

[bcd]

So do NBT. Oh my god.

[crypto_coiner]

Indeed –
What is going on? why is the peg recovering?
Is that a stable recovery or not?

[Sentinelrv]

Is that a stable recovery or not?

Without the revenue to go along with it, no it’s not sustainable. If a revenue scheme is thought up, then maybe.

[Sentinelrv]

And transaction fees are not going to be a good enough supplier of revenue, especially in the future. Blockchains are not capable of acting as networks for high capacity transaction processing like Visa or Mastercard. Bitcoin uses 10 minute block times and look how large the blockchain is already with such a minimal amount of adoption in the world. It just doesn’t scale.

I believe blockchains are meant to work in conjunction with off-chain solutions, which can carry the majority of the transaction load, so the chain is kept as minimal as possible. The blockchain is best used as a way to maintain a decentralized ledger of accounts and their balances. Transactions on-chain should be discouraged through high fees, similar to Peercoin. This will push the majority of people to use off-chain networks which are less decentralized, but capable of high capacity transaction processing. Only the people who require absolute security will use on-chain transactions, since it will be so expensive. This will keep the blockchain from growing out of control with increased adoption.

Nu needs to earn revenue though to off-set the costs of operation, which requires NuBits to be burned. Transaction fees have been the main source of revenue up until now. NuBits can only be burned through fees that occur from on-chain transactions. NuBits can’t be burned through fees from off-chain transactions. So that means if the future of crypto involves using the blockchain as a way to secure a decentralized ledger, but off-loading the majority of transactions onto off-chain networks, fees burned from on-chain transactions aren’t going to be a large enough source of revenue to keep Nu afloat. The same thing will happen to Bitcoin when the majority of transactions occur off-chain and miners aren’t receiving enough on-chain transaction revenue to make up for their costs.

Nu will need to find a source of revenue outside of transaction fees if it has any chance of surviving the future.

[Phoenix]

I continue to be amazed at how pessimistic the mood is here on the forum as the mood on the Poloniex US-NBT and NSR trading floors is jubilant. NSR volume has been absolutely phenomenal this last week, much greater than any time in the past. NSR pricing is up at least 50% in the last week. We have a perfect $1.00 peg with some support right now. The market has approved and endorsed our recovery. Why are so many forum accounts here insisting on denying or ignoring this tremendous victory and validation of our network? It doesn’t matter that much. I made a calculation three months ago that my plan could gain shareholder and market support, even if my plan didn’t have forum support. That is what has happened. Shareholders supported my last grant proposal at 64%. My popularity with shareholders is growing. People buying NSR in recent weeks and minting with it are disproportionately supporting me. And this after our painful NSR sales. If I can get 64% shareholder support near the end of a terrible series of share dilutions, what do you think my level of support will be when we are near the end of a series of NSR buybacks?

Winners write the history books. That’s me. I will keep speaking as Chief of Liquidity Operations. I will keep getting paid. I will continue improving our operations. The malcontents who would like to infect us with their doom will continue to have no role and no relevance going forward. They will either find a way to begin serving shareholders as I have done, or they will just disappear and be forgotten. We now have two competing narratives of what happened:

1. An unsustainable financial model ran out of money, causing asset prices to fall dramatically.

2. The liquidity engine and currency support were shut down completely in direct defiance of shareholder directives. While it took a few weeks for shareholders to use blockchain grants to begin new operations that were independent of the failed decentralized operations, this was done successfully. By then, a full scale credit collapse had occurred in our space, making recovery a process of regaining confidence through solid financial results. Those financial results were delivered in a rapid and convincing manner, which was confirmed with a return of the peg and an NSR rally. The results proved that not only can the liquidity engine be used to reliably keep a peg, it can be used to boost the price of an asset 400% in 70 days and then establish a peg at that elevated level. It can do this with zero reserve as proved these last two months. It can do it without park rates. And it can do it after recklessly destroying 85% of the NSR market cap we depended on as our sole means of currency support. We have proven we can raise an asset price 400% and then peg it with just 15% of our market cap. What could we do with 100% of the market cap, park rates and a utilized reserve? Hold an incredibly strong peg, of course.

Given what I have accomplished these last two months, the first explanation makes no sense. If we ran out of money, how was I able to buy about 450,000 US-NBT to restore the peg? That was around $400,000 USD. Where did it come from if we were out of money? Of course, we weren’t any where near out of money to support our currency. I have proven we have at least $400,000 USD, and that is after the NuShare crash. It is appears quite likely to me that if liquidity operations had been properly managed we could have raised over 1 million USD in the same period. That is more than our entire currency supply. This suggests that if properly managed, the liquidity engine can likely purchase back every unit of currency we have ever issued within three months without losing the peg. That’s a powerful system. It deserves to live and grow. That is the verdict of shareholders and investors. Forum participants can either become useful to the shareholders and investors who have endorsed the network and my management of liquidity operations, or become irrelevant and forgotten.

[Nagalim]

Winners write the history books. That’s me.

Judge jury and executioner. Can’t you see that he won? I mean, he proclaimed it and everything.

I’m pretty sure that the blockchain writes the history book at this point. But whatever you say Mr. Dictator.

By the way, if you’re looking for narrative number 3 it’s that we would have recovered sooner and would still have had reasonable governance motions in place to avoid complete monarchy if Jordan Lee hadn’t been a complete ass to all the volunteers. But that’s not your favorite narrative so I’m sure you’ll leave it out when you write your book.

[serfer]

Anyone invested in NSR since 8 months ago saw a dramatic decline in their holdings. It is not surprising to see such doom and gloom here. Its ok though, because NSR found its floor at 50 satoshis and has begun an upwards stair step pattern enforced by massive volume and a stable NBT peg. New money is coming in and with that, a whole new user base. This is the beginning of a new era for NSR & NBT. Hats off to those that put in the work.

[backpacker]

with all due respect to those who have invested, i must say that one of the most important parts of any currency (or value token) is trust.

unfortunate fact is that you lose trust much faster than acquire it.

how many would seriously consider storing anything of value in “pegged currency” that is stable 9 out of 12 months per year? who would invest into shares value of which decreases as number of them increase? why would NSR value increase if even the big owners like B&C dump them for BTC?

[DavidMc0]

I don’t keep up with things a lot here, though from what I’ve seen, you might be right about what has happened, but the community has been significantly weakened by your arrogance.

I hope you are right, and that market & investor confidence is a sound foundation for the NSR price recovery, but it’s a possibility that it’s just a market whim as seen on any number of far less useful, innovative and promising ‘pump and dump’ coins on Poliniex / elsewhere.

You’ve successfully alienated people who, while they may have made significant errors with big implications, wanted & probably still want the best for Nu. If treated with respect and clarity, I’m sure would these people could be an important asset in re-building the foundations of a new era for Nu.

I’m not asking for you to back down in terms of your course of action or version of events, but if you could re-build the bridges with those committed supporters who you’ve alienated & help them to understand what went wrong, I’m sure it would help in bringing this community back together to be a positive part of the Nu ecosystem along with shareholders and the markets.

Disagreements will happen, but why not aim to bring people together instead of just pushing out those you blame completely for what happened?

A bit of humility wouldn’t dilute your strong leadership, but it would strengthen the community and, I think, the future of Nu.

[Phoenix]

You’ve successfully alienated people who, while they may have made significant errors with big implications, wanted & probably still want the best for Nu. If treated with respect and clarity, I’m sure would these people could be an important asset in re-building the foundations of a new era for Nu.

Agreed.

[Sabreiib]

how many would seriously consider storing anything of value in “pegged currency” that is stable 9 out of 12 months per year? who would invest into shares value of which decreases as number of them increase? why would NSR value increase if even the big owners like B&C dump them for BTC?

I guess every one including @phoenix dislikes dilution of NSR to repair the NBT peg, it’s definitely a painful process. This crisis tells us that tier 6(NSR dilution) is not a good daily peg defence while it can be the last resort.

In fact I’m glad to see phoenix inclined to 100% reserve ratio on CN-NBT. Next time when we find the reserve is insufficient(due to backing asset price drops), we should sell NSR in advance. Of course NSR shareholders hate NSR dilution, so our target should be finding a proper revenue.

With regard to the disagreement in recently 3 months on forum, perhaps both sides are correct on something, we should unite together to make NU/B&C better.