[Passed] Bitcoin Reserve

[Nagalim]

What’s the difference? We only calculate the size of the reserve once a week at buyback time.

[crypto_coiner]

So ok, this is a motion that specifies we hold 15% of nbt value in btc at the time of buyback check.
Reserve = which tier and who holds it?

[cryptog]

Reserve = which tier and who holds it?

Btc flot

[Nagalim]

This isnt a new reserve. This changes just one little clause in the buyback motion to switch from all T4 buy side to btc only.

[mhps]

one little clause

Well to be fair it significantly increases the reserve fraction from 15% to like 24%, which I happen to like given that Nu is still young and fragile. The draw back of a higher reserve is efficiency of fund is lower – more money is idle. I think it is acceptable. The idle funds are guards.

[masterOfDisaster]

The idle funds are guards.

And they are necesary!

Liquidity wise Nu is operating as fractional reserve, which backs the difference by corporate value.
The “guards” need to be on a sufficient level to keep both Nu and its customers safe from a bank run.

I highly appreciate to ramp up USD stable reserves.
The 24% might still be too low for the next months and quarters.
While this will impact the NSR buybacks (more funds in reserve = smaller/no buybacks) it helps fostering a more reliable liquidity operation.

[Nagalim]

Im hoping this will pass before ppc buybacks trigger so we dont buy into ppc before we’re ready. I’m hoping we’ll see the ppc reserve fill when demand for nbt picks up again, rather than stretching our bitcoin reserves thin.

[crypto_coiner]

Now i get it.

[crypto_coiner]

Added to my data feed

[zoro]

Passed!