ALL deal with liquidity operations:
filling reserves (peg in danger), a fix for too many NBT in circulation (peg in danger), a fix for to little NBT in circulation (peg in danger), a fix for too many BTC on T4 buy side (volatility risk), etc.
You could reduce that to two motions:
one to structure liquidity operations that adjust dynamically to a changing market and changing reserves - hint: I’m speaking of 6)
one to deal with funds in excess
In fact you could stuff all into one motion, but I find it useful to separate “liquidity operations” from “revenue distribution business”.
To make it short and simple my draft (which seems complex, but is less complex than the set of motions Nu already has or will soon have…) deals with liquidity and
some thresholds that trigger actions
automatic adjustment of buy and sell side reserves to NBT in circulation (distribute revenue, burn NBT)
balancing of the buy and sell side
contracting sell side (NBT buyback) preferred by selling BTC
if BTC reserves run dry, refill reserves by selling NSR
inflating sell side (NBT distribution) in exchange for receiving BTC or NSR
recommendations for NSR holders to grant NSR or NBT based on level of reserves
Distributing revenue has been left out intentionally - the funds in excess that should be distributed could be defined by the motion nevertheless!
An idea for that is in the intro. It has been left out of the motion draft to not mess with the current NSR buyback motion.
It’s up to the NSR holders whether they prefer a set of band aid solutions or a sound framework.
Having no useful rules for the FLOT forces the members to discuss, trying to interpret the NSR holders’ will in times they should act.
Having all spread across a dozen motion makes it hard to keep track and consider the effect of changes in one motion to other motions.
You can start to read, discuss, improve motions that try to draw a bigger picture, or wait for the next motions:
Perhaps this might be going off topic, but we could break it out to another topic if it’s disruptive.
I’d like to hear what people who understand the system more than I do thinks about @masterOfDisaster’s approach. He (correct me if otherwise) lays out arguments that are attractive to me, but I don’t trust my own understanding enough to make a conclusion.
Shareholders seem to want to pass many less-complex motions in a row, which of course has the danger of losing sight of the forest due to all the trees, as MoD points out. I almost feel like we’ll need to make a motion just to tie all the other motions together into one coherent plan of business. I say we have at it with the bandaids, then pass an overarching motion that invalidates all the preceding motions once the shareholders have a greater concept of consensus for Nu operations.
I’m disappointed too, but sometimes the shareholders need to be coddled.
I think it’s very much on topic, because the generic topic is liquidity operations.
And you shouldn’t trust mine!
My proposal is just a draft. I’m not sure whether the thresholds are good and the actions are wise.
They are just as good as I could make them.
And they will very likely not stay the same even after such a motion has passed voting.
There need to be feedback loops to include experience.
But first it needs to start!
Try to understand it, try to attack it, try to improve it!
Start discussing it!
There has been a marked increase in the level of demand for NuBits in recent days. I can’t predict where demand will be even hours from now, but I can say that if current trends continue the NuBits in tier 4 under my control will run out in 24 to 48 hours.
I am disappointed that this grant has not received shareholder support and that FSRT is not doing anything.
Did we come this far to lose the peg to the upside for refusing to release NuBits into the market? That is the question that FSRT and shareholders need to contemplate.
The peg is in serious danger right now. Disorderly and expensive liquidity operations by way of Nu borrowing NuBits from large holders could be as little as 24 hours away. How do shareholders and @FSRT plan to deal with this?
it seems that voting is not a proper process for this kind of “emergency”. Although i don’t believe that peg is in danger (unless of a sudden big BTC decline in value).
but NBT exist in other exchanges as well (at the moment).
I don’t think that speculators could be in so panic that will buy NBT at any price from a single exchange without a sell wall!
Getting the kind of support that this grant has gotten in the first couple thousand blocks actually tells me the shareholders are doing their job very well. Even if the peg breaks upward for a couple days, I highly doubt it will incite a panic. We will establish stronger mechanisms for this eventually. For the time being, our profit source is somewhat self limiting.
I have voted for this motion yesterday but perhaps its due to the large amount of votes we have right now in combination with a grant for 100k that has passed quite recently that many shareholders are unaware. Perhaps additional visibility can be given to this topic by using EMERGENCY in caps in the topic title. While this is not a very elegant way of doing this it might help get this grant passed as soon as possible.
Right now we’re in a situation where many traders want to pull out of bitcoin as the market is very unsure in which direction its going, this is probably part of the increased surge in demand. We should also be very responsive to the market settling down and lots of people wanting to trade back their Nubit for bitcoin. Times like these are were our peg mechanisms are truly tested.
What is the status of the FSRT? Slow to respond? Nowhere to be found? Has everyone lost the keys to the 4 million NBT?
Perhaps the FSRT should be disbanded – the 4 MM NBT handed back to Jordan Lee in a single-sig transaction or burned.
It may be a step backwards from this being a distributed solution, but as this is the first time the FSRT has been put to the test, maybe it was a flawed approach to begin with that is just being discovered now. Lessons that the FLOT can learn from.
To have availability, perhaps JordanLee can advance several motions for NBT grant, and the shareholders can modulate their voting, to keep the motions at under 50%, but close enough that liquidity could be provided in short order.
The only way around I can find to overcome this situation in a urgent way and complying with motions is to “manually” reach the 40% sell side threshold, forcing @FSRT to come up and redirecting big buyers to trade with @FSRT directly.
I basically agree but See @JordanLee following comment
" I am disappointed that this grant has not received shareholder support and that FSRT is not doing anything.
Did we come this far to lose the peg to the upside for refusing to release NuBits into the market? That is the question that FSRT and shareholders need to contemplate."
Regarding @FSRT and the 4 million NBT they possess:
Each member of FSRT has remained active in the community, doing good work on a nearly daily basis to improve our network. They are all here. However, they are not responding with any consistency. I don’t know why.
Excuse my ignorance but I have a couple of questions that I should have asked before voting but given the urgency of the situation I decided to vote before:
How can I check the quantity of NuBits in tier 4 under JL’s control? Is it under this address ?
How can I check about that? What is this BTC address under the control of JL ?
In other words, currently, what is the quantity of NuBits in the wild (not under the control of shareholders) ?
I think this is something most shareholders want to know because they want to know to which extent Nu’s assets (NSR market cap and BTC Tier4 reserves) are higher than liabilities (NuBits in the wild not under the control of Nu).
It seems that assets/liabilities have been increasing a lot recently. I will try to update monthly P&L soon.
By the way, NuBits current daily volume is 24k but buy_side/sell_side is increasing. This could suggest that traders are buying NuBits and hoarding them to unfreeze them at the right time, which means Nu should be prepared for a sudden sale off.
Overall, I think it is a huge opportunity for Nu to expand. I am now convinced that the risk of losing the peg is negligible given our assets.
Which I believe is a different thing from saying that the peg is in danger.
I don’t share that view. I do share the view that we are loosing out on an opportunity to meet the market on BTC pairs on some markets. However that also increases our exposure for attacks
I believe the shareholders trusted the FSRT to deal with these kind of ‘emergencies’ and see themselves to be forced to act in ways which are a step back and they are not entirely comfortable with.
Agree. We still haven’t heard why @FSRT can’t respond and whether the future FLOT might also be exposed to this issue which might require another response.
I prefer to think over all the parameters. Your motion is not necessarily bad but forces to make me an all or nothing choice. Given the time required to study this and the fact that Nu is still a startup and is paving the way I prefer to walk through the key decisions step by step. When things are better understood and some experience is gained a motion like yours will be valuable.
Will add this grant to my datafeed as I think we can do with some additional sales, although I share the view that we should increase the reserves slightly to mitigate the risk of short-term attacks
I stopped minting on my raspberry pi since it was only able to mint 10% of its true potential due to RAM issues. I’m now minting on my PC with full power, having subscribed to @cryptog 's data feed, so hopefully we get this motion passed now. I can only mint today and tomorrow though, then I will be away from my PC for a week or two.
