I wanted to give an update regarding tier 4 liquidity, as it has important implications for park rate voting. I have exchanged a lot of tier 4 liquidity for NuBits in recent days and now have 531,000 NBT in my possession. This means the number of PPC and BTC I hold as tier 4 buy side liquidity has been considerably depleted. I presently hold 85,000 PPC and 81 BTC as available tier 4 liquidity.
There is now 80,000 in buy side liquidity being reported by the client. It is not clear to me whether this includes all tier 2 liquidity at this point in time as that has been in transition in recent days. Clarification from LPCs and the NuBot team would be helpful. Tier 3 liquidity is not yet automated and as far as I know there is nothing there.
Many NuBit holders have recently sold, presumably to hold BTC in the hopes that the bottom is in. As a result, total liquidity in tier 1 through 4 is lower than it has ever been.
I will leave it up to individual shareholders and group discussion as to whether the situation warrants voting for parking rates. Be aware that the protocol presently limits park rate increases to 1% per day. So, if shareholders voted to raise park rates from 0% to 5% it would take four days to rise to that level. This daily increase limit is too restrictive and is being raised to 3% per day, but that will not be implemented until the 0.6.0 release.
Shareholders have passed a motion (bda115840291067ba0814032f0c93d4d5900a5cf in block 183,809) for currency burning where the intent is to back the peg with the value of the NuShare market cap by creating and selling NuShares as needed in exchange for NuBits, which are then burned. This is not implemented yet (due in the 0.6.0 release), but it can be simulated using the undistributed NuShares I hold. I understand such action to be consistent with the will of shareholders as expressed in this passed motion. If there proves to be controversy regarding this point, I would be willing to reconsider that assessment. It is my intent to be subordinate to the will of shareholders, but the appropriate time window for action is shorter than the time required to pass a motion. As a result, already passed motions will be the primary basis for my interpretation of shareholder will, supplemented by my understanding of shareholder interests, comments in this forum and the preliminary results of any proposed motion. Specifically, if someone advanced a motion suggesting a different course of action and there were majority support for it in the first couple days of voting, I would cease activity contraindicated by that motion in the days required to finally and formally receive approval. Subject to the qualifications just described, if total buy side liquidity in tiers 1 through 4 drops below 100,000 NBT, I will sell NuShares to approved purchasers at the market price evident at the time of sale to protect the NuBit peg. Please contact me by Bitmessage at BM-2cXS5ezep1jUqeu8CwC6M4aTmMSxcFEHNN if you are interested in purchasing. Accordingly I will use proceeds from these sales to purchase NuBits, which will then be burned. I will be advancing a motion to burn all NuBits that I hold in excess of 250,000 shortly.
Regarding the question of whether to support the peg with interest rates, tapping the market cap or both, I believe both will prove to be the most effective approach.
Soon I will be advancing a motion that will reduce the probability of needing to support the peg with interest rates in the future. I will present an important method for peg support that has never been discussed here and propose an end to speculative activity with shareholder funds, which has been an important factor in leading us to this place where we are considering offering interest rates.