[Passed] Motion to end LPC operations of KTm, Jamie and NSR sales of Jordan

NuShares Motions
#23

Sorry for all the hassle and back and forth. I had mistakenly read “Use everything between including the tags.” as “Use everything between the tags.”

So, now it is working as @woolly_sammoth intended. Thanks. ed7b9fc65dc4e9d9acad61e528420c2690f599d2 is my final answer.

2 Likes
#24

Thanks, the only remaining problem is that the verify link is not accessible to us. I don’t know how to create a raw page here in the forum and to make it publicly available. @woolly_sammoth did it for me in my case.

So right now we still cannot verify the hash but I am sure everything is fine and that the “verify” link will be updated soon.

1 Like
#25

I d like to know about the ratio of liquidity provided by non-shareholder funded LPCs 1) over liquidity provided by shareholder funded LPCs 2) currently, before voting.
2) would be gradually fading away so it would give shareholders some time margin to increase 1) after pasage but I just want to make sure that we would have enough margin.
For example, if the ratio is too small, we should first increase 1) before passing the motion, I think.

1 Like
#26

Morning. Sorry for the confusion. I have edited the ‘verify’ link in the OP to point to the actual raw text so verification can take place.
I still need to come up with an elegant way around this issue. As you can imagine it has slipped down the list of priorities somewhat I recent days.

#27

Hash verified. [ed7b9fc65dc4e9d9acad61e528420c2690f599d2]

EDIT: added actual hash.

#28

hash ed7b9fc65dc4e9d9acad61e528420c2690f599d2 verified.

#29

Maybe it’s just because I got the flu and have some temperature, but I stumbled upon a question I couldn’t find an answer myself:
if NuNet goes zero reserve and KTm and Jamie end their operations how exactly are new NBT brought into circulation?
I mean, as the LPC provide liquidity with their own funds and need to buy NBT in the first instance in order to place NBT sell orders, where do they buy them?
Who sells them?
As zero reserve is the goal, NuNet can’t take compensation for handing out the NBT.
How to bring new NBT into circulation?
Sell them for USD, buy NSR with the USD and burn them?
I think I need to delete this post at some later point when the fever has gone.
But for now I have to ask this nonsense; pardon my (hopefully only temporarily experienced) ignorance.

#30

Remember there is a difference between Liquidity Provider Custodians and Sell Side Custodians as defined by the white paper.

LPCs are compensated for allowing greater demand variability in NuBits. If aggregate demand for NuBits is 100 NBT per day, variability might mean some days have 97 NBT of demand, and others have 103 NBT. Shareholders compensate LPCs for providing that 3 NBT in demand variability insurance. In this simplified example, LPCs would ideally be providing 5-6 NBT of insurance in that case so that a spike in demand wouldn’t break the peg. Relevant:

The trading bot should automatically and immediately place these 1,000,000 NBT for sale at a price of 1.002 USD (one USD + a 0.2% transaction fee). If this order fills, then the bot should use the USD proceeds to immediately place a buy order for NBT at 0.998 USD. All funds should be continually on order and the LP custodian’s funds should not be depleted by transaction fees.

Sell side custodians sell new NuBits above LPC prices. Relevant:

Using our formula above, the trading bot would place a sell order for 10,000,000 NBT at a price of 1.0021. The reason it should be 1.0021 instead of 1.002 is that we want dual side sell orders to be executed first, so their funds can be returned to providing buy side liquidity.

The profits from the sale of those NuBits can be used for any purpose shareholders see fit - dividends, share buybacks, or development work.

1 Like
#31

Thank you for patiently explaining what I wasn’t able to understand.
I digged in the whitepaper, but stopped a chapter too early as it seems.
Although I made a fool of myself I won’t delete my post for it may serve people who are new to NuNet.
And now I’m really off to bed, trying to get rid of the fever.

#32

I think it’s very likely a common question, thank you for bringing it up! Feel better.

1 Like
#33

Jordan,

This is a very good plan. Thank you for taking the time to put this together.

Jamie

#34

With discussion about @KTm and @jmiller starting liquidity pools, I thought I should clarify that this motion only regards their use of shareholder funds received via custodial grant. It is not intended to prohibit operation of liquidity pools using private funds. I would like this motion to be passed and see @KTm and @jmiller run liquidity pools after its implementation using private funds.

2 Likes
#35

I still have a couple of questions to be answered before voting for this motion:

Compared to the expected time of this motion’s passage, when the protocol is expected to be altered?
Before or after this motion’s passage?

That means that if the nsr’s auction is performed and successful, 200m nsr would remain and intended to be burnt. What is the purpose of this burning? To increase the unit price of NSR?

How many NBTs are held currently by Jordan Lee?

Overall, my understanding is that all the shareholders’ money held by KT and JM, whether it is NBT or BTC/PPC will be burnt.
However, after their operations cease, would some shareholder’s fund (non NBT) in custody of Jordan Lee remain (I suppose at Tier4) that could be used to help maintain the peg just in case or this motion’s passage would also imply the end of any use of Tier4 to maintain the peg as it is written below:

1 Like
#36

Verified and voted

#37

This motion amends or nullifies
previous agreements between shareholders and KTm and Jamie as required
to comply with this motion.

Do we have to suppose that (the execution of) (certain) motions can be amended/nullified/modified (at any time) once passed?

#38

Not really appealing for someone looking for a long-term growth stock

#39

I am quoting here, but to me it constitutes the gist of one of the pictures here:

  • The more LPCs, the more decentralized

“Running NuBot isn’t harder than running a miner, and many people are able to do that. Targeting many people with low to moderate funds will provide a stable liquidity floor which won’t fluctuate as much as with a few very rich custodians.”

  • “Ideally each NSR holder should be willing and able to run a NuBot”
  • “Exchanges can be great LPCs even without asking of any reward. just
    the fees would be enough”
#40

You can pass motions that cancel previous motions.

#41

@assistant motion vote ed7b9fc65dc4e9d9acad61e528420c2690f599d2

#42

Hi @cryptog

Here are the details for the Motion Vote on ed7b9fc65dc4e9d9acad61e528420c2690f599d2:

##[ed7b9fc65dc4e9d9acad61e528420c2690f599d2][1]
[1]: https://discuss.nubits.com/t/voting-motion-to-end-lpc-operations-of-ktm-jamie-and-nsr-sales-of-jordan
Blocks: 1910 (19.100000%)
Share Days: 582265211 (17.901982%)

Motion hash to place in your Nu client:

ed7b9fc65dc4e9d9acad61e528420c2690f599d2

When our network began, we had a way to increase the NuBit supply at the will of shareholders. We then decided to add a way to decrease the NuBit supply at the expense of increasing the NuShare supply (due in the 0.6.0 release). It should not be surprising then, that a mechanism for reducing the NuShare supply would also be introduced, to complete our flexible supply of both share

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