[Passed] B&C Exchange should trade all US-NBT for NSR

[Phoenix]

This motion has been finalized on Daology.

Motion Hash: 94c2541e909b1240ac478571305809cd23295a21

Please note that voting is taking place on both the Nu and B&C blockchains.

Currently B&C Exchange has around 120,000 US-NBT as its
development fund. These are worth around $80,000 USD at current market
rates. It isn’t enough money to finish the exchange. Hence, it is
difficult to find developers to devote themselves to the project with a
reduced chance of success.
These funds are also a menace to the Nu network. The last thing
NuShare holders want to see is the B&C Exchange NuBits hitting the
thin US-NBT buy wall as they inevitably will as development picks back
up at some point.
Exchanging these 120,000 US-NBT for about 280 million NSR (using
$0.70 for US-NBT and $0.0003 for NSR) provides compelling benefits for
BlockShare holders, NuShare holders and US-NBT holders.
Benefits for BlockShare holders
As it stands, the B&C development budget is insufficient to
complete the project with a current value of $80,000 USD. Progress can
be made which could spur further investment, but the lack of funds is
suppressing enthusiasm for the project. Furthermore, US-NBT has low
liquidity. NSR has much better liquidity in recent times. A more liquid
asset is a safer asset in many regards. If NuShares merely return to 100
satoshis again, B&C will have the type of funding that would make
it practical to finish the initial implementation. There is a very good
chance of NuShares being 100 satoshis or much more in the relatively
short term. They were over 500 satoshis just 3 months ago. Since then,
major improvements have been made to liquidity operations and costs have
been dramatically reduced. Chinese NuBits are being developed with 100%
segregated reserve, and are about to be released. We have recognized
and fixed the governance problems that led to the crisis of June. There
is a lot of new value that will be recognized once it is clear we have
restored the US-NBT peg.
If NuShares go down before B&C Exchange spends their NSR, the
situation will not be fundamentally different from what will occur if
B&C Exchange holds on to its NuBits: in either case additional
funding will be needed to complete B&C Exchange. Only the case of
buying NSR and having it regain some of its historical value is
additional funding for B&C Exchange unnecessary.
Benefits for NuShare holders
Because NuShares are a speculation on the future probability of
issuing additional NuBits, anything that increases the perceived
probably of future NuBit issuance will benefit NuShare holders. With
this deal, the US-NBT supply will drop below 400,000 in just a couple
weeks, down from a high of around 820,000. Most of the reduction was
done in just a couple months. It is an impressive rate of currency
supply reduction that bodes well for our ability to support currencies
in the future, now that our major governance problems have been solved.
With a 400,000 US-NBT supply, our current daily burn rate of 1500 US-NBT
means 0.375% of all US-NBT is being removed from circulation each and
every day. Such a pattern is sure to bring US-NBT back to $1.00, if it
can be sustained long enough. In just approxiately 4 months, the US-NBT
money supply would be halved once again to under 200,000. However, our
goal isn’t to purchase all US-NBT in circulation. Rather, by making it
an attractive product we increase demand. If people percieve that it has
little downside risk, but nearly a 50% upside at $0.70, it is an
attractive product. Hopefully the US-NBT money supply will never come
close to being as low as 200,000.
Benefits for US-NuBit holders
If the 120,000 US-NBT held by B&C Exchange are brought against
the US-NBT buy wall in the short term, it is sure to lower the US-NBT
below what it would have been if US-NBT are instead burned. This will
protect the value of US NuBits and increase confidence in their value.
This is a win for everyone involved. Let’s do it. Here is how it would proceed in practice:
A single motion that constitutes a contract between BlockShare
holders and NuShare holders must be passed on both blockchains, by both
sets of shareholders. This is that motion.
Once the motion is passed on both blockchains, B&C Exchange
NuBits are transferred to @Phoenix. A custodial grant of NSR is created
by NuShare holders. The exact final amount will be determined by the
market rates of NSR and US-NBT at the exact time this motion passes on
the second blockchain. For instance, if @Phoenix is custodian to 120,000
US-NBT in B&C funds, the US-NBT price is $0.70 and the NSR price is
$0.0003, then NuShare holders would be bound to create an NSR custodial
grant in the amount of 280 million, because (0.70 * 120000) / 0.0003 =
280,000,000. @jooize will post the applicable market prices after the
motion passes on the second blockchain.
@Phoenix burns the 120,000 B&C Exchange US-NBT and disburses
the NSR as needed for development. It is regularly sold for BTC or NBT
that is used to pay for development. The NSR remain shareholder funds,
and will be handled in any manner specified by shareholders, including
transfer to a multisig group created by shareholders.

Please offer your constructive suggestions and observations. If you have something negative and counterproductive to say, please kindly write it on a piece of paper and flush it down the toilet.

[Sabreiib]

I suggest a foundation or a team to manage the development fund rather than a single person.

BTW, you should post this on bitcointalk thread where you crowdfunding.

[Phoenix]

I suggest a foundation or a team to manage the development fund rather than a single person.

I agree completely. The difficulty is in finding a group of qualified and trustworthy signers, as I have detailed here. I had floated the idea of having B&C funds managed by yourself (@Sabreiib), @jooize and myself, but you indicated you weren’t interested. I can’t identify 3 signers who are qualified and willing at the moment. That is likely to change before too long, but that is the situation today.

[Sabreiib]

I dislike holding the fund because it costs time, however, if I am required to do so, I’ll do that, call of duty is hard to refuse as a responsible shareholder.

[Cybnate]

I can’t identify 3 signers who are qualified and willing at the moment. That is likely to change before too long, but that is the situation today.

The way you identify qualifying signers appears to be a bit limited. I’m sure there are at least a few more signers available within the top 8 reputation available including myself. I believe that with the transaction you suggest confidence is very important. One way to increase that is to include other reputable signers and larger shareholders.
Also missing is a statement of providing some bookkeeping on the transactions for development. I believe that is required.

Regarding your proposal in OP;
I don’t agree with your assessment re share value. The chances that NSR goes back to 100 satoshis anytime soon are limited (<25%). To establish the peg I believe it requires at least another 250,000,000 shares need to be printed. Which means at least another reduction of 20% in the value of NSR. When the peg is established we are still in the dark on how operation will be funded other than selling even more NSR.

However being also a NSR shareholder, although heavily diluted, I don’t think there is not much to loose. The risk profile stays roughly the same. Still relying on Nu to establish a peg and regain confidence. I won’t comment on the chances of that happening given the current situation in the next 3 months but I have my thoughts.
Anyway the chances that the NBT funds can be spend by B&C are also minimal and diminishing given the current situation. So weighing both up and for what it is worth, I think I’m ok with your proposal. It will give Nu more chance to recover and establish a peg and with that a chance for B&C to spend some of the funds on ongoing development.

B&C shareholders will need to prepare to be diluted as we will need to raise at least another US$40-50k and print the shares to go with it in order to complete the client and star operations. This assumes that earlier estimates done by the main developer are correct. Without scoping up the remaining work and clarifying the remaining gaps it will be hard to estimate.

If you have something negative and counterproductive to say, please kindly write it on a piece of paper and flush it down the toilet.

Toilets must be clogged by now I believe as not many responses are coming through in the forum

Summary:
Agree with proposal but signer group needs to be increased and transparency about the use of development funds needs to be added.

[GreatScott]

Please offer your constructive suggestions and observations. If you have something negative and counterproductive to say, please kindly write it on a piece of paper and flush it down the toilet.

Why even bother with this paragraph when you ignore them all anyways? You are running out of ideas and it is pretty obvious.

[ConfusedObserver]

Currently B&C Exchange has around 120,000 US-NBT as its development fund.

Wasn’t B&C Exchange starting with like $200k dev fund?
What have the $80k been spent for?

$0.67 for US-NBT

It’s hard to keep the US-NBT rate up by selling NSR, which are worth less and less.
Wanna know how to increase NSR rate?
Get the revenue stuff sorted out instead of playing tricks and trying to hold BKS owners in custody!

Please offer your constructive suggestions and observations.

I consider the recommendation to introduce revenue to Nu highly constructive.

If you want to stay immune to recommendations that help beyond the effect of tricks, would you please kindly write your thoughts on a piece of paper and flush them down the toilet?
This would help the forum to stay more clean, at the price of being almost completely silent.

If I had a choice, I’d prefer silence.
True, I already have that choice, but I still don’t think all is lost - maybe Nu and B&C Exchange can get rid of malevolent actors and claim control again.

It was just too tempting to get in control after you realized that a lot of shareholders don’t want to participate, right?
Might have worked out, if you knew your job.
Alas, you don’t…
Your main flaw is that you don’t listen and blindly follow your own belief.

[backpacker]

These are worth around $80,000 USD at current market rates. It isn’t enough money to finish the exchange.

how do you know?

[ConfusedObserver]

how do you know?

To state the obvious: because @Phoenix == @JordanLee.
How else should he know how many US-NBT are left or how many have already been spent on development?

It’s a pity that there’s no reporting about the details.
Bad job, very bad job by the architect.
Bad job by the shareholders not to demand those reports. Why should anybody listen to random people in a forum?

Nu and B&C are not mainly doomed, because there’s somebody who wants to be a leader and pulls the strings to become one.
The main reason is that the shareholders don’t stop him and he frankly says they don’t because they appreciate his job.
I say they are too lazy or not informed.
Anyway, a DAO where the “D” failed has lost the “A” and the “O” as well.
Nu had a “D” in the form of a FLOT that was meaning well, acting as a kind of delegate, but unfortunately without a proper mandate.

It looks like there’s not much left of FLOT, which is a pity. FLOT could have been used as “board of directors” if set up properly.

[Chronos]

Interesting idea. @Phoenix, a report on the NBT that has been spent so far would be a good first step for this process.

One thought: the claimed value of the NBT is based on current price, which is so thinly traded that it can easily be manipulated up or down by 10%. It’s quite a leap of faith for both BKS and NSR holders to agree on a valuation.

That’s a lot of NSR. It seems that it would be able to push any motion through. Would it be used to mint?

Guys, be sure to use toilet paper. Regular paper clogged my toilet, too.

[Phoenix]

@ConfusedObserver your comments are just exactly the sort of negative, angry and unrelated rants I was hoping would be flushed down toilets instead of infecting this important workspace.

You have addressed quite a few topics, but none are related to the topic at hand.

It is obvious you are determined to see this project fail because you couldn’t play the role you wanted to within the project. You are creating a hostile environment. I would guess you aren’t a shareholder. People who aren’t shareholders, want the project to fail, and work against us by derailing important conversations and creating a hostile environment should not be participating.

Moderators, can we get @ConfusedObserver’s inappropriate comments removed from this thread please?

On a more positive note, thanks to @Cybnate and @Sabreiib for your constructive comments. I will have to respond to @Cybnate’s comments later because I spent this time dealing with a counterproductive distraction.

[Phoenix]

Would it be used to mint?

Absolutely not.

a report on the NBT that has been spent so far would be a good first step for this process.

I have always been of the opinion that the level of disclosure and reporting provided by Angela has been suboptimal. I have made repeated requests to her for more reporting. Those reports don’t appear to be coming. So, we have two choices: accept what Angela is doing or set up alternative operations that don’t rely on her. The later has been discussed, but we haven’t arrived at a consensus on how to conduct alternative operations yet. It will happen before too long, I believe.

However, the paranoia in the community has been quite high the last couple of months. I’m confident Angela’s service was pretty much entered into with the attitude that no one else was willing to do the important work, so she would be self-sacrificing and help out. She isn’t scamming us and it is apparent she has no attachment to her work. The problem is people coming in here and demanding someone else provide a solution they want, and for free. I say you want a solution? Go provide it yourself.

[MrBean]

I have always been of the opinion that the level of disclosure and reporting provided by Angela!!! (:D) has been suboptimal. I have made repeated requests to her for more reporting. Those reports don’t appear to be coming. So, we have two choices: accept what Angela is doing or set up alternative operations that don’t rely on her. The later has been discussed, but we haven’t arrived at a consensus on how to conduct alternative operations yet. It will happen before too long, I believe.

Ladies and gentleman, I have been absent for quite some time. But to everyone in the world I always promised that once I find someone who is more funny than me, I will show up, applaud and disappear again! Hats off @Phoenix, I don’t think I have any joke at hand that even has a tiny chance to compete with yours in any way. Even though I am a shareholder, I indeed don’t care anymore about my investment as I had my ROI. How? Well, if I had to pay ticket prices for comedy shows that in aggregation deliver the same amount of amusement as you currently do, I really start appreciating more and more that I found this place in the past, although for quite a high price.

[ConfusedObserver]

@ConfusedObserver your comments are just exactly the sort of negative, angry and unrelated rants I was hoping would be flushed down toilets instead of infecting this important workspace.

Just because my posts make you angry that doesn’t make them a rant.
What in particular do you have in mind, which you consider negative - besides my assessment of your job and your achievements so far?

You have addressed quite a few topics, but none are related to the topic at hand.

The revenue topic is the most important topic. Stop throwing these smoke grenades.
If you want to save Nu, you need revenue.
If you continue your way, you continue to look like running a ponzi scheme.

Moderators, can we get @ConfusedObserver’s inappropriate comments removed from this thread please?

What do you dislike in particular? Being unveiled as JordanLee once again?
I fear you did that yourself.

However, the paranoia in the community has been quite high the last couple of months.

Calling it paranoia is an attempt of putting this behaviour on the irrational side.
But it’s far from being irrational having doubts about the well-being of Nu if people see the network run mainly by a single individual, which was once called JordanLee and now wants to be called Phoenix.
The attempt to leave responsibility behind ad continue with borrowed reputation rings alarm bells.

I say you want a solution? Go provide it yourself.

The option to purge you, @JordanLee == @Phoenix from both Nu and B&C Exchange has been discussed.
It looks like this needs to be done, if a business with revenue shall replace your ponzi scheme.
I bet it’s only a matter of time until

• Nu fails completely (making B&C Exchange a collateral damage) or
• “bad addresses” get removed from the blockchain by a hard fork

[Dhume]

First step is to get the B&C funds moved to a multisig team so B&C shareholders can actually asses what funds are left, a motion to do so has already been proposed.

@Phoenix I’m not sure about this proposal I see more merit in a proposal that would require an x% of funds (let’s say 50’% as an example) raised by NSR sales to be dedicated to buying back NBT from B&C dev fund at 1 dollar a piece. That means we’re giving B&C a better price then we can currently get Nubits from the market but then again Nushare holders have a stake in B&C as well. On top of that it was mostly B&C raised BTC that was used for the NSR buybacks so the least Nu could do is buy those Nubits back at the price B&C bought them for.

With this it would mean B&C would get a steady return of funds to be used for development. We can then asses how much funds we have (roughly 120k NBT right?) and make plans with @sigmike if this is enough to fund the remaining development.

[Sabreiib]

One problem is no developer will accept BKS as salary, if even developers don’t have faith in BC, why not we find some other developers who accept BKS?

At least, B&C is better than XPM which has $ 1,100,823 Market Cap. Even the development stops, what would we fear?

[Dhume]

We need to get the funds in shareholder control first. Then we can start talking with Sigmike about how much we need to complete B&C exchange.

[Sabreiib]

I will vote your motion joining RSOT. BTW, I suggest all members compromise and step backward a little to accept persons you dislike into RSOT, this is democracy.
We are on same boat, fighting each other isn’t productive.

[cryptog]

I think I agree with the main idea of this proposal.

[Phoenix]

I just created an updated draft.

I hope to start voting in a day or two.