Nubits Peg to Gold

I would like please to discuss the Nubit peg to gold as I am very interested in such an idea.

There are a few competitors in the USD peg and I think Nubits has kept the peg tight generally over a long time
and done very well, however in my humble opinion it is time we added the gold peg.

If someone could please explain to me why we need two different coins (Nubits and Nushares) to achieve the peg
that would be nice because I would have attempted a peg with just one.

How would you make a peg with just one token?

Then why not people buy the real gold?


Thanks for your interest.

I will try to answer the why first.

  1. The purchase of physical gold is not always legal, feasible, encouraged or easy in many jurisdictions and parts of the world.

  2. The purchase of gold bullion and coins is fraught with having to assay them and verify their authenticity and purity.

  3. The average man would have to purchase a safe or worry about hiding it.

  4. Transporting gold is arduous, especially across borders or distance.

  5. Gold in the form of a decentralized (distributed) open source and free (as in freedom) cryptocurrency might encourage people to use both gold and cryptocurrencies.

  6. Opportunity.

I am sure there are many more reasons.

How would I attempt it?

A community of like-minded people would start a project aimed at creating this gold pegged cryptocurrency and I stress that it be pegged to gold but not backed by gold.

First issue the coin with a fair distribution – maybe an ICO of a reasonable amount of coins which are mined just to get it off the ground. The mining of transactions and regular mining like Bitcoin’s proof of work to be alternated between mining the coins and transactions and mining only the transactions with burn of half the transaction fee accordingly:


If for example our coin @ $1500 is trading higher than gold @ $1100 we increase the quantity of our coin by enabling ‘mining’ until the price approaches that of gold.


If for example our coin @ $300 is trading lower than gold @ $1100 we first wait to see if price rises on its own (its supposed to be pegged to the price of gold so there might very possibly be those that will buy in anticipation of the rise and thereby push the price up making any further measure redundant in this scenario) and if it does not rise, we halt the issue of our coin by disabling mining and miners would be paid only to verify transactions and this would halt inflation. Finally if even then, the price fails to rise ,we would destroy some of the supply by means of paying half of the tx fees to the miners
and the other half of the transaction fee would be destroyed and in effect cause deflation and scarcity thereby bring up the price.

Initially the coin would probably be volatile and would have a loose peg. Prices would rise and fall
which would be good opportunity for speculators, however , with time the price should stabilize
with wider adoption.
The idea is control the quantity and you have done it with only one coin. Decisions on when to each measure should be taken should be reached by consensus of the community. Maybe something like what Dash is doing.

1 Like

Transaction fees are known to impose at most an extremely low level of deflation (Nu already burns 100% of fees) on the order of $100/year (total). It is very likely this model will result in a token that permanently falls with respect to the price of gold.

Maybe thats Nu .

I have done a couple of transactions today
and have used at least a dollar’s worth of transaction fees
and thats just today and I’m not hundreds of people.

Dogecoin for example very low fees but they still add up.

You are talking about top 10 cryptocurrencies worth millions if not billions of dollars. Compare the txn fees as a fraction of marketcap and i think you’ll find that deflating a currency by even a few % per year is rare, nevermind trying to deflate at a rate fast enough to keep up with even long term market volatility.

For example, assume people spend $1 per day on bitcoin txn fees (like you say). It would require 1 million users just to shrink the btc supply by 1% in 1 year ($30,000,000,000 x %1 / $1 / 300 days = 1M users)

Maybe rewarding senders of the coins to burn addresses could be something like 100% or 50% of their burn principal + the principal and could be rewarded over time from tx fees to incentivize burning.

Newsflash : Vaultoro is now forcing all their customers to verify themselves. The need for a currency pegged to the price of gold is increasingly evident and urgent even if implemented the same way as nubits. A currency pegged to silver and some other metals would also be nice