Evening all. I’ve composed my proposal to Bittylicious.
In the interest of openness I would like to post it here for Shareholders to review before submitting it to Bittylicious tomorrow evening (GMT)
I wrote a ticket on Friday 20th February regarding NuBits and my desire to get them listed on Bittylicious. Thanks for your reply in which you linked me to your requirements for submitting an altcoin for inclusion on the Bittylicious platform.
This ticket is my proposal which aims to describe how NuBits, and the Nu network in general, are unique amongst Altcoins.
The full description of how Nu works can be found in the whitepaper with supporting information on the main website. There is also our introductory marketing video and plenty of discussion taking place on the forum.
Nu is based on the Peershares platform which in turn is based on Peercoin. The Nu network can be considered a DAC (Distributed Autonomous Corporation) and as such has several unique features which are unavailable to other crypto currencies.
NuBits are the first currency on offer from the Nu network. NuBits are a stable crypto currency which are pegged to the U.S. Dollar with 1 NBT equal to $1. To achieve this stability Nu has split the currency portion of the network from the speculative asset portion. The speculative assets are referred to as NuShares and denote part ownership of the Nu network (in a similar way to shareholders part owning traditional corporations). NuShare holders have the ability to cast votes which are held in the Nu blockchain and influence several aspects of the continued running of the network. The most important votes influence the available supply of NuBits which is the mechanism by which the $1 peg is maintained. NuShare holders can vote on interest rates in exchange for taking Nubits out of circulation (known as parking). Parking can address short term periods of low demand, by reducing the available supply, while creating fresh supply in the long term through the payment of the parking rates. For longer term supply reduction, an ability to ‘burn’ NuBits is being introduced in a future update.
The decision to introduce this burning feature highlights the second unique feature of Nu. The decision was not made by any one person. A ‘motion’ was put forward on the NuBits forum which was then questioned on the forum and voted for by NuShare holders directly from their client. Only when a motion has passed can it be enacted by the core development team. Motions can be for anything, not just protocol changes, and represent a form of social contract. A motion is considered passed when more than 50% of the blocks in a rolling 10000 block window (about a week) contain a vote for the motion.
The third unique aspect of Nu is the Custodial vote. The voting mechanism is the same as for motions but a custodial proposal requests an amount of NuBits for a specific use. Upon passing, the network automatically generates the requested NuBits and deposits them in an address specified in the proposal. This is another mechanism by which the available supply of NuBits can be controlled.
To demonstrate this I have submitted a Custodial proposal to generate 320 Nubits which translates, at current exchange rates, to £200. It is my intention that upon passing, these NuBits will be exchanged for Bitcoin and used as the deposit you request for listing new altcoins. The proposal is currently being voted for by NuShare holders and seems to be gaining traction in the blockchain.
A large portion of maintaining the $1 peg is the provision of large amounts of liquidity to the market. This has been enabled to date via supporting exchanges and enacted by custodians voted into position by NuShare holders. These custodians each provide deep liquidity (50,000+) on the exchanges through the use of automated trade software called NuBot. I expect it to be a similar custodian who operates on Bittylicious should this application be successful.
NuBits were released in late September and since then have been a pretty much constant fixture in the top ten crypto currencies for 24 hour trade volume on coinmarketcap.com. On several occasions NuBits were listed in the top three. The exchanges that list NuBits have enjoyed large trade volumes due in part to the fact that NuBits provide an attractive hedge in times of Bitcoin volatility. NuBits have also been used effectively to transfer value between exchanges due to their stable nature and one minute block times.
In conclusion, I think that the addition of NuBits to your service would be valuable to both Bittylicious and Nu. We are in a position to provide large amounts of liquidity and have proven the ability to provide large volumes on supporting platforms. We also have a large, devoted and vocal community as well as a dedicated development team with several successful projects under their belts.
On a technical level:
The NuBits daemon is evolved from Bitcoin so shares an RPC interface. This satisfies one of the acceptance criteria for a new altcoin on Bittylicious.
In the criteria you mention the ability to provide continuous liquidity through an automated client. Is there a Bittylicious API available that we could integrate into NuBot to make custodianship on bittylicious an easier task?
Should this application be successful, would you consider adding Bitcoin as a purchase option for NuBits? I believe that this would greatly increase the potential trade volume taking place through your platform.
I look forward to hearing from you
Sam (woolly_sammoth on the NuBits forum)
Feel free to suggest amendments or suggestions for things I may have missed.