And before I say anymore, it should be clarified that parking rates are a mechanism included in NuBits to handle short-term declines in demand. They are not an admission of failure.
Nu is in a position right now where we have had multiple exchange hackings that have crippled shareholder-provided liquidity, and we have not yet reached a point where individual LPCs or group LPCs have formed. We also have not yet reached open-source status, where it would be expected system-wide demand for NuBits would increase with our addition on larger exchanges. We’ve seen how important our exchange network is to NBT demand with the low volume in the wake of BTER and Exco.in disappearing.
We should have a discussion on what interest rates should be voted for. I am personally voting for 5% interest rates up to 1 year durations, and 15% interest rates beyond that. I have confidence in the design of NuBits but there is a small chance of peg failure if we don’t take action as a group of shareholders to tide over this short-term demand problem. Parking rates were included in the design for a reason: now is the perfect time to use them.
I invite voters to enter the same percentage for each period. The number you are entering is an Annual Percentage Rate (APR), therefore it will linearly scale with time. There is little to no reason to have non-linearity and make things more complicated.
For example, voting 5% for all periods will results in the following rates :
2.8 days premium : 0.013% (not even worth the tx fee of 0.01 probably)
...
2.5 months premium : 1.25 %
5 months premium : 2.5%
1 year premium : 5%
2 years premium : 10%
...
to make a concrete example , if you use @cryptog 1% for 11.4 days , you imply that someone parking 1000 (one thousands) NuBits will receive ~ 0.3 NuBit as a premium for parking for more than ten days ( minus 2* tx fee ).
I do not think that thirty cents of a dollar is exactly an attractive perspective if we want to attract anybody to buy NBT just for the sake of parking.
With my proposed 5% the same guy above will make 4 NBT for parking 1000 NBT for a month. It is still very conservative.
And if you are worried that using this parking rates can inflate the supply, think again : we are soon voting for a 27k NBT grant for android development. With a 5% APR It will require someone to park 500k NuBits (1 fourth of current supply) for one year to get an equivalent in premium.
I really intended 0% beyond 1.5m since I did not see the point of rewarding parking beyond 1.5m.
I assume that the current low buy liquidity will be improved within a month. When it is improved I assume that we can let nubits flow gradually the market.
So perhaps a span ranging up until 3m is more appropriate.
I assumed naively that the interest rate corresponded to the indicated time period although the client clearly mentions “annual interest rate”…Kind of reality denial bias from my side
I will correct that.
I still think that displaying the interest rate you get for each time period is clearer from a user interface perspective.
By the way, the spreadsheet provided by @desrever is crucially useful.
If you run getinfo in the console you can see the current number of parked NBT. That’s it though. Make sure you’re doing it on the NuBits context, not NuShares.
Tks, And sorry for being lazy.
By the way it is only 10% roughly of current buy liquidity at Tier1 so we have some margin in case it is unparked immediately (wort case).
