At risk of derailing this thread, I will respond. If needed, we can move comments out to a separate thread.
More structure in our plans for burning (both NSR and NBT) would be helpful as an iterative improvement. I know you have done some work on that and it is appreciated. I have some ideas I’d like to present but doing hasn’t quite bubbled to the top of my priority list yet. However, I don’t believe it is prudent to create NSR buy pressure by offering park rates. Doing so would increase demand for NuBits, which might allow us to use sale proceeds to purchase and burn NSR, but the approach isn’t sustainable.
The relatively even liquidity walls are telling us the market is absorbing the additional NuBits entering circulation as NuBits unpark. Parked NuBits reached a peak of approximately 105,000 NBT about two and half months ago. Now there are only ~34,000 NBT parked. This means NuBit demand is growing at a healthy pace. I hope to see all NuBits unparked in a month, which would demonstrate there is no need to spread parking out over time.
NuBits experienced a drop in demand in February and shortly thereafter as a result of the losses on exchanges and the loss of venues to trade NuBits at. As currency demand dropped, we saw park rates which ultimately reached 19%, followed by NSR sales paired with NBT burns. That is what the bottom of our economic cycle looks like. Demand began to increase from that bottom, which manifested as an end of park rates being offered, no more NSR sales and drop in the number of parked NuBits. If NuBit demand continues to rise as it has in the last couple of months (I’m not claiming it will as much as I’m just illustrating what the course of our economic cycle is), then we see demand for the 34,000 parked NuBits as they unpark over the next month. If new demand continues, we will see tier 4 buy side liquidity grow to a level where will want to use some of those funds for dividends or NSR buyback and burn.
So, park rates being zero is a sign of network health. Having funds available for dividends or share buyback would demonstrate even greater network health, but it is to be expected that as our economic cycle turns that we would first need to absorb NuBits that are unparking.
If NuBit demand continues to grow at the pace it has in the last couple of months, we will begin to have funds for dividends or share buyback in a couple of months. We can expect the NSR price will respond favourably to that scenario. We just need to continue to focus on ways to increase currency demand while limiting expenses. It is working.
