Our 2.0 release is nearly code complete. It features all the protocol changes that have been passed by motion. Highlights are NSR grants, variable transaction fees, faster changes in interest rates and protocol voting.
Our liquidity software has experienced profound improvements in recent months. We now have a UI for NuBot, and have added Creon’s Trustless Liquidity Provider software. This is now being used to provide liquidity in three pools (in addition to NuLagoon), each of which has many users that can join or leave the pool at will. Parametric order books are next. That will allow us to provide liquidity on illiquid cryptoasset pairs (right now we only support Bitcoin). The first pair to use parametric order books will be an NSR/NBT pair. Approximately 50,000 NBT was spent per month on liquidity during the first six months of the network’s existence. The 10,000 per month we will be spending once Jamie and KTm shut down operations in the coming weeks is a huge improvement. I expect we will continue to see cost improvements per NuBit of liquidity provided as pools compete. Long term, decentralized exchanges will bring down costs and risks much further. There has been tremendous improvement in liquidity operations in recent months and I expect to continue to see a rapid evolution in liquidity operations in the coming months.
Shareholder directed development and ongoing costs
I have talked about my intention to move toward a more decentralized approach to development for some time. In keeping with this, I will suggest that any future motion to add features to our software include funding in the form of an NSR grant. The grant that @Cybnate received for Android development is a great model. There is no need for a sudden change to decentralized development driven by motions paired with NSR grants, but in an effort to transition to that I plan to cut the general development budget for which I am responsible to 10,000 NBT per month within sixty days. So, within 60 days, we will have 10,000 per month allocated to NuBot, TLLP, and core development combined and 10,000 per month allocated to liquidity provision. Any additional spending will need to be funded by custodial grants to develop specific features. This means approximately 1% of the market cap will be consumed each month for general development and liquidity provision. It is expected these activities will bring more value to our network than they are consuming, as must be the case for any costs incurred.