In this post I’m exploring new opportunities and revenue streams for NuNet. I’m interested whether NuShareholders would support investments in areas other than providing pegged currencies.
I have been triggered by the discussions in the last 12 months and more recently why we are not paying dividends. The main reason is that Shareholders have chosen for a shares buyback scheme. That way the value won’t be leaking into other chains and stays with Nu which seems reasonable to me for now. But where does our revenue come from and are there other opportunities to create more revenue and potentially dividends?
Current revenue streams
Let’s have a closer look first at our current revenue streams.
- The main revenue stream is selling NuBits for BTC. The BTC received for selling NuBits are used for the buyback.
- Transaction fees. The transaction fees are automatically burned by the network. Practically this means that when the demand stays the same we can sell 1 NBT for 100 transactions assuming the current fee of 0.01 NBT applies.
In the future by kickstarting other currencies like SDR and NuEuro more profits can be made by selling these for BTC or NBT. I deliberately mention NBT as it is likely that a certain percentage of NBT holders will jump ship to another currency on the Nu blockchain. So we have to be cautious about forecasting profits for releasing future currencies.
In the last few months the blockchain technology has been popularised a lot and many companies are looking into it. However the trend is for companies/banks to establish their own chains. Just check out what is happening within NXT or with the whole discussion around sidechains within Bitcoin, child chains and other variances of cross blockchain technology like within Ethereum. Could the strong and trusted Nu network present a similar offer? As everyone knows it is not easy to set up a blockchain. To do so you will need nodes, a blockexplorer etc.
Most companies don’t need a currency or another full blockchain though, they just need a publicly verifiable set of transactions stored in their database. However they still need nodes or blockexplorers. They are generally not interested in that type of infrastructure. The infrastructure is what we happen to have with NuNet or to me it appears we can relatively easily create on our own Nunet blockchain. Basically a token as a service, but a bit more than that. Is that a viable business case? Maybe.
So let me introduce the concept of NuBase, a kind of transactional database on NuNet available for anyone who can afford to pay some fees (see below) but won’t have the capacity to set up a secure blockchain with all required assets as nodes and blockexplorer for themselves. One could buy an instance of NuBase. Here is an example. Let’s say Bob wants to buy NuBase for his company tracking ownership of Bobmeters. Bobmeters are used to track the meters people travelled using his helicopter service. Bob’s NuBase chain would just be another currency on the NuNet blockchain. The currency would be Bobmeters. A number of Bobmeters are issued by Bob when customers have travelled. They can be redeemed by his customers for future travels. Bob can also issue Bobmeters as gift cards redeemable for his services. As an additional service Bob also provides the service to exchange the Bobmeters for NuBits on the B&C exchange.
The above is just an example, other services like notary services and message services are also possible. The key questions are what kind of charging model would work for Bob and what kind of other services would Bob require to make this a valuable and attractive service for him and make him buy a NuBase instance on NuNet?
Would NuNet charge Bob for the creation of his token and a monthly fee thereafter? Besides nodes and a blockexplorer Bob probably would need an application where customers can find their balance. This would require developer services. A way around this is to offer standard packages for e.g. customers rewards like Bob’s example, notary and message functions. Should we offer those packages together with a NuBase offering? That would of course require an upfront investment in development and marketing. Can we afford that?
Blockchain size issue
Another challenge is when adding new services to the existing blockchain is that we need a prunable blockchain. The blockchain size would increase significantly. Honestly I think we should have this in place with the introduction of the new stable currencies anyway as out blockchain size is already growing rapidly. A temporary workaround is to provide a torrent blockchain from a trusted source which downloads seamlessly when starting the wallet for the first time to kick-start the initial download process.
I’m keen to hear the feedback from other Shareholders regarding a concept like NuBase. Should we invest in this type of commodity market or should we stick to providing pegged currencies? And if we should invest in it what would be the timelines, should we be leading by starting now or should we be followers picking up this potential market later this year.