Liquidity Operations needs NuShares to carry out Tier 6 and replenish liquidity. At the rate of 0.5% NuShare dilution per day, 500M NSR will cover 30 days (calculation). Liquidity Operations might sell larger amounts of NuShares directly to investors, but must in order to protect the voting integrity of the network stay within the maximum dilution rate of 0.5% per day.
Is there even a bidding process? Can’t you make a daily deadline for submission of offers? Who are these investors that don’t want to buy from exchanges? Could you please define the term “voting integrity” and how you can guarantee to protect it by limiting dilution to 0.5% per day?
There will be structured bidding if demand for off exchange trades becomes high enough. I recommend placing funds on NuShare order books, but it makes sense to prefer direct trades for larger amounts as they can get a better price while guaranteeing funds go to the network. We obviously want the price to up from demand, but sometimes rather secure funds than leave them off the table.
Network is processed by NuShare holders, and actively voting (minting) shareholders adjust transaction fees and decide whether to issue new NuBits or NuShares. It’s in existing shareholders’ interest not to allow too rapid potential disruption in voting results. Limiting the rate of dilution limits how much and fast new shareholders can affect the network.
This grant request of 500,000,000 NSR to SxarXZ56vjJ6VKhDret8iqVbKZZz344f6r is a standard Liquidity Operations grant to be used to implement Liquidity Operations policy. It is a 2 of 4 multisig address.
I fully endorse the grant, and want to take this opportunity to express to shareholders that it is needed to create buy pressure for NuBits, which is the action that will make further demand for NuBits most likely. This grant is needed to preserve the integrity and credibility of the network.
500M NSR with a maximum dilution of 0.5% per day will accomplish almost nothing. At the current market price 500M NSR represents around 15-20 BTC, barely 100K USD against a NuBits outstanding of over 10M USD.
Much more decisive action is needed and it involves a hell of a lot more dilution than 0.5%/day. The existing leadership that ran this system into the ground and the existing stakeholders who voted them into a position of (well-compensated and poorly-deserved) authority need to be wiped out, or very nearly so.