I’ve always found it uncomfortable that a mechanism designed to support the price of NuBits (to support the peg) involves increasing the supply of NuBits in the medium term.
In addition to this, if NuBits are parked from being held rather than bought from an exchange, they will do little to nothing to support the peg, only inflate the supply in the medium term, which is counter productive.
One way to potentially make NBT parking more potent in its support for the peg would be to enforce that any NBT to be parked must be bought on the open market. If a method could be found to do this, it would ensure that anyone parking would need to add buy support to the peg, rather than possibly parking already held NBT.
Alternatively / in addition, what if parking incentives were applied to NSR instead of NuBits?
This way any upward pressure on NSR price from parking offers would help support the peg by providing liquidity via NSR sales, and NSR being diluted in the future sits more comfortably with the more speculative nature of the asset compared to NuBits.
If parking were moved to NSR, it might also be easier to ensure that any new parking provided liquidity, as parking could only be available on NSR bought in fresh NSR sales. For better or worse, this would make it impossible to run parking alongside NSR buy-backs. NSR buybacks could also be used to pay the interest on parked NSR when buybacks resume.
I haven’t thought a lot about this, but thought I’d throw it out there in case there’s some substance to it.