Nu Blind Auction NSR #1 (closed)

Phoenix 2016-06-24 23:59:55 UTC #61

The market price on Poloniex is currently 0.000496 USD for NSR and around 0.20 USD for US-NBT. That would imply an NSR market rate of 0.00248 US-NBT. I would suggest a practice of setting the reserve price 10% below the market price, which is 0.00223 US-NBT in this case. If NSR isn’t purchased because of the reserve price, then we are better off selling the NSR on Poloniex. Whatever isn’t sold in the auction should be sold on Poloniex.

One hazard of picking reserve prices is that the market rate of NBT or NSR could change before the auction ends, which would make the reserve price suboptimal. I don’t see a good way to remedy this, although it is possible to do so by selling only on Poloniex where reserve price doesn’t apply. We can look at the results of this auction and decide whether it makes sense to have another auction or sell on Poloniex.

Nagalim 2016-06-25 02:54:15 UTC #62

So if 1 nbt=$1, the minimum price should be 0.000496 nsr/nbt. Or is nbt only $1 when it’s not us that’s buying it? If FLOT states nbt=$0.2, then the peg is already entirely gone and we need to admit that.

cryptog 2016-06-25 05:13:40 UTC #63

I am ok with sending back the remaining to FLOT and keepin 5000NSR as tx fee.

crypto_coiner 2016-06-25 12:14:43 UTC #64

What s a reserve price?

backpacker 2016-06-25 12:21:42 UTC #65

I don’t think we need any reserve price, to be honest.

mhps 2016-06-25 15:07:38 UTC #66

@jooize Have you received the NSR for Auction #2 / sales ? If yes I suggest you put all of the lot at the market price that you estimate on Poloniex until some time on Sunday that is convenient to you.

Auction is not feasible this week but if needed the proceed btc from selling nsr can be used to buy nbt later.

Phoenix 2016-06-25 17:24:15 UTC #67

This is a great question and excellent suggestion for a workaround given NSR FLOT’s current ineffectiveness.

May I suggest 80 satoshis as the price? Moving it down 5 satoshis once or twice a day until it sells would get it sold well before any auction next week. Using the proceeds to purchase NBT on Poloniex as the NSR sells so steady upward pressure is placed on NuBits, instead of one big pump with all funds at the end is optimal.

jooize 2016-06-25 18:02:13 UTC #68

By the time the auction is done, a new Standard will have been calculated. Is the effect of that intended, by both of you? I haven’t learned how it works.

The lowest price allowed per NuShare in the auction.

How did you calculate 0.00223 US-NBT?

I’m a little curious to see the results of no reserve price. Could it attract more participation being beneficial long term? I don’t know.

I had not, but broadcasted the transaction and now have them.

Sounds good. Any controversy in doing all that? I’m preparing a motion to clarify the workflow of blind auctions. I’ve been quite busy, but should have more time upcoming week.

My current withdrawal limit is unfortunately only $2000. I have spoken with Poloniex and should get it up to $7000 this week. Within a month I should have Level 3 verification with $25,000 withdrawal limit.

Phoenix 2016-06-25 19:00:56 UTC #69

The then current market price of NSR was 0.000496 USD and the US-NBT price was 0.20 USD approximately.

0.000496 / 0.20 = 0.00248, the price of NSR in US-NBT.

Subtract 10%:
0.00248 - (0.00248 * 0.1) = 0.00223 US-NBT as reserve price

NuLaw doesn’t say anything about reserve prices, so this decision is left to the discretion of authorized agent of shareholders. That is @jooize.

There are no direct regulations about what you should do with last week’s NuShares, because this type of situation was not foreseen. There is a lot of room for discretion. Trying to get the best price you can is fundamental. I doubt not setting a reserve would serve this important objective. We want to keep the volume of NuShares sales in moderate zone in this case where the peg has already broken. Too much, and we push the price down needlessly to a place that makes it difficult to support our currency later. Too little, and we aren’t supporting our currency.

mhps 2016-06-25 19:12:05 UTC #70

I assumed the calculation will show that there will be an action the next week. So just carry the (current week’s) unsold nsr over to reduce extra work.

I am fine with your plan. But withdrawing multiple times over several days is fine. too.

Sorry to put you under pressure by asking you to sell during the weekend, only for today one day.

cryptog 2016-06-26 01:47:37 UTC #71

So there will be no blind auction this week but sales via Polo. How many nsrs are being put into sales on Polo by @jooize ?

Cybnate 2016-06-26 04:37:11 UTC #72

I’m lost, not sure why we are selling through Polo. There is no NSR/NBT pair. The idea of selling shares is to reduce the NBT on the market, not to have BTC holders buying NSR.

cryptog 2016-06-26 05:06:34 UTC #73

We need to have more shareholders too to increase the minting diff but i agree that the first priority should be to decrease network s liabilities.

mhps 2016-06-26 05:48:46 UTC #74

there is only one day left for the week and no attempt to sell nsr according to standard and core was made. my suggestion was a quick and easy way to at least try. as there was no time for an acution just for one day, i suggested putting the whole lot at a price on polo for btc. btc can be used for development or buyng nbt to burn later.
well there is only a half day left. if Nu puts a large amount for sale, it could attract buyers who want only to buy a large quantity in one go. These buyers often dont leave their huge orders in the order book. They see a desired opportunity, show up with money, do the transaction and leave.

jooize 2016-06-26 19:19:49 UTC #75

Oh right, of course. Didn’t realise there’d be five days until they’re needed.

It’s late now, but I’ve put all shares at 80 satoshi on Poloniex anyway. Even if it’s only three hours until I will take them off again for the auction, I want to begin the workflow already.

Half of shares withdrawn. Second half next day.

Nu Blind Auction NSR #2 is live.