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

The protocol switch date is unknown. I would be surprised if it happened in less than two months.

To remove any question about what I will do with them. The increased certainty and the control that shareholders will have over the creation of NSR should increase the network’s value.

536,000 + 5,000 currently at BTER

Yes, non NBT funds would remain for tier 4 liquidity. Medium term, this should held jointly using multi-sig. If enough liquidity could be developed in the NSR market, tier 4 might only consist of NSR.


I moved 3 posts to an existing topic: Park Rate Voting

@assistant motion vote ed7b9fc65dc4e9d9acad61e528420c2690f599d2

Hi @cryptog

Here are the details for the Motion Vote on ed7b9fc65dc4e9d9acad61e528420c2690f599d2:

[1]: https://discuss.nubits.com/t/voting-motion-to-end-lpc-operations-of-ktm-jamie-and-nsr-sales-of-jordan
Blocks: 4787 (47.870000%)
Share Days: 1430582899 (44.710345%)

Motion hash to place in your Nu client:


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

Read More

I am late but I wanted to make sure that even with the passage of this motion, we would still have some time margin to increase the number of lpcs.
The end of operations of KTm and Jamie will be a gradual process.
So their buy liquidity support will fade away gradually.
In the worst case in which Nu has not increased the buy liquidity via private custodians, we would still have some liquidity present in some of the reserves held by JL at Tier4.

This has passed. I will have more to say about steps that need to be taken for a smooth transition in liquidity operations over the next several months. In three months time we will be certain there will be no more exchange defaults on shareholder deposits, because there won’t be any.

For now I would encourage shareholders to quickly transition away from using Jamie and KTm’s services. We can do that even faster than the motion stipulates if there are enough LPC proposals and shareholders pass them. It could take as little as two weeks if people stepped up quickly to provide alternatives. Such an outcome is worth a lot. I would be especially pleased to see liquidity pools form and LPC proposals that make use of off exchange funds in tier 3, even though that means movements between tier 3 and tier 2 would be handled manually for now. It is worth the trouble to protect from exchange defaults, as we have learned. As I have said elsewhere, it may make sense to have 5% in tier 1, 5% in tier 2 and 90% in tier 3 to provide excellent protection from exchange default.


I think this is must.
Otherwise it is gonna be difficult to find new LPCs I believe.
The new LPCs new to protect themselves. Hedging by purchasing derivatives is probably too complicated for the average LPC.
Spreading the liquidity over Tiers1-2-3 is much simpler

1 Like

It has been 7 days since the passage of this motion. It would be appropriate for @KTm and @jmiller to give a report on their implementation of the above terms.

To accomplish burning at the present time raw transactions must be used. Information in how to contruct them is available. Nu specific documentation also outlines how to use raw transactions for multi sig addresses, which may be helpful. If you have questions about how to proceed, please as @sigmike, @erasmospunk or myself for assistance. I would advise burning a NuBit or two as a test before attempting to burn the entire amount. Please let everyone know what address(es) you will burn from in advance.


Sorry about the delay. I’m working on this today. @JordanLee I sent you a BM with a couple of questions about this process.


A test burn of 5 NBT was sent to address BGzfoZHwjKXgbX7R5oPdG12QgFZV6tjpcB. By examining the txid, you can see that 4.99 NBT was burned as fee.

Funds that are still locked up on Bter will not be factored into this first 25% burn, as they are currently out of my control. Below is a breakdown of the funds that are currently under control:

BTC: 20.0033 (5822.1605 NBT)
NBT: 6896.3579

BTC: 10.8693 (3163.6184 NBT)
NBT: 2175.8859

BTC: 87.5209 (25473.8331 NBT)
NBT: 25447.9761

Off Exchange
BTC: 32.0023 (9314.5894 NBT)
NBT: 150503.9

The exchange rate used is $291.06, which came from Bitcoinaverage.com on March 9, 2015 21:04 UTC.

Total funds in NBT:

25% = 57199.5803

If someone could please look at this breakdown and verify that there are no obvious errors in calculation, I will proceed with the burn of 57199.5803 NBT to this address: BMdEGVo9oSmsFHDKiL39CYhaSD3AmCv4s4


Edit 3/9/15 21:22 UTC: I found an error in the amounts reported for Bitspark, so I recalculated everything using the current BTC exchange rate.



Note that an error was found in the numbers posted above which has been corrected and updated to reflect the current BTC exchange rate.

This is quite a lot of NBT to burn. I would appreciate a nod of approval from at least one shareholder before I proceed.

I’ve just run the numbers and they come out agreeing with your calculations. I’ve also verified that the transaction you mentioned has a 4.99NBT tx fee.
As far as I’m concerned, the burn can go ahead

Double checked your math and all my figures match.

Sorry for the delay, I can confirm these numbers. If you don’t truncate the exchanged BTC values after the 4th position you get 0.0001 NBT more in the final balance :smile:

Mind to share how exactly you are burning? Are you using ‘nud’ and if so, what exactly do you use as command?

Thank all of you for your help. The burn is complete. You may examine the transaction here: 6390f9015efc66adf423a80eb81ea43d13a1d4d0e52e11f020985f998bbb5353

@creon I will answer your question in a moment. I just wanted to get this posted first.

It would appear it’s in the transaction fee?..

You can do this with nud, but I simply used a debug console from the gui.

The standard command for constructing a raw transaction is:


By dropping the last part (, “CHANGE_ADDRESS”: CHANGE_AMOUNT) any change will be put towards fee, or “burned” as we are calling it here. So, here are the steps I used:

  1. Send a normal transaction of 57199.58 NBT to a temporary holding address and take note of the txid. In this case, it was: 44da74b59b4e522784380bb022304cf44972f721146234e96d75240d9edb3455

  2. Construct the raw transaction using the txid from your temporary holding transaction to the desired burn address and do not provide a change address:

createrawtransaction ‘[{“txid”: “44da74b59b4e522784380bb022304cf44972f721146234e96d75240d9edb3455”, “vout”: 1}]’ ‘{“BMdEGVo9oSmsFHDKiL39CYhaSD3AmCv4s4”: 0.01}’

  1. Use the transaction hex that the above command returned to check and make sure you’ve entered everything correctly:

decoderawtransaction 01000000ac22fe54015534db9e0d24756de934621421f77249f44c3022b00b388427524e9bb574da440100000000ffffffff0164000000000000001976a914bc65851004a5b595762bd16ce51194ad7c663a3388ac0000000042
“txid” : “106a1da853f6e578e2b2fec76d5cc8b707d8f4aee1d580419eb6a7aa66023eb5”,
“version” : 1,
“time” : 1425941164,
“locktime” : 0,
“unit” : “B”,
“vin” : [
“txid” : “44da74b59b4e522784380bb022304cf44972f721146234e96d75240d9edb3455”,
“vout” : 1,
“scriptSig” : {
“asm” : “”,
“hex” : “”
“sequence” : 4294967295
“vout” : [
“value” : 0.01,
“n” : 0,
“scriptPubKey” : {
“asm” : “OP_DUP OP_HASH160 bc65851004a5b595762bd16ce51194ad7c663a33 OP_EQUALVERIFY OP_CHECKSIG”,
“hex” : “76a914bc65851004a5b595762bd16ce51194ad7c663a3388ac”,
“type” : “pubkeyhash”,
“reqSigs” : 1,
“addresses” : [

  1. Sign the transaction using the same transaction hex. This will output a new transaction hex:

signrawtransaction 01000000ac22fe54015534db9e0d24756de934621421f77249f44c3022b00b388427524e9bb574da440100000000ffffffff0164000000000000001976a914bc65851004a5b595762bd16ce51194ad7c663a3388ac0000000042
“hex” : “01000000ac22fe54015534db9e0d24756de934621421f77249f44c3022b00b388427524e9bb574da44010000006b483045022030378722de92cd279cdb3fe7eb62e867b48a40e30b3034db0beeea9215a6142b022100861dee5807ac0d0557f74770c8afe3c34dac882567ebd65205d1c876b9a8423501210362721967f873d43bc320d4fc5b90cf8156bdf18a4e48d7ded8fcdaa4b7c19d97ffffffff0164000000000000001976a914bc65851004a5b595762bd16ce51194ad7c663a3388ac0000000042”,
“complete” : true

  1. Now send the transaction using the signed transaction hex. This will send the transaction and output your final txid:

sendrawtransaction 01000000ac22fe54015534db9e0d24756de934621421f77249f44c3022b00b388427524e9bb574da44010000006b483045022030378722de92cd279cdb3fe7eb62e867b48a40e30b3034db0beeea9215a6142b022100861dee5807ac0d0557f74770c8afe3c34dac882567ebd65205d1c876b9a8423501210362721967f873d43bc320d4fc5b90cf8156bdf18a4e48d7ded8fcdaa4b7c19d97ffffffff0164000000000000001976a914bc65851004a5b595762bd16ce51194ad7c663a3388ac0000000042


Nice bonfire. We should have had a ceremony and a count down for this. Be it known that Nu not only prints nubits. It systematically burns nubits as needed, too. Gone are the days when Nubits creation was a oneway street. My confidence in Nu just goes up by a notch. We should announce it in the news far and wide and record it in the journal @tomjoad


Posted to Twitter & Facebook: https://twitter.com/OfficialNuBits/status/575105027171315712

Posted to Reddit: http://www.reddit.com/r/NuBits/comments/2yie7a/a_nubits_custodian_has_completed_a_historic/

Reddit text:

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

Proof of burned NBT: http://blockexplorer.nu/transactions/6390f9015efc66adf423a80eb81ea43d13a1d4d0e52e11f020985f998bbb5353

What does this mean, and why is it a big deal?

It’s important because this is the first time that a Nu custodian has used the burn mechanism for NuBits. It definitively proves that the network is capable of removing NBT from circulation when demand
necessitates it. Any “ponzi” label attributed to us by our competitors should now be retired forever.

Soon, the Nu network will have the ability to grant NuShares to custodians who promise to burn a certain number of NuBits. In this way, modest NBT demand declines can be directly protected by the market valuation of NuShares. This NSR-for-NBT burn mechanism will be a complement to the existing parking rates mechanism.

An additional supply-reduction mechanism - variable transaction fees - is scheduled for a future release too.

There should be no question at this point that NuBits is the world’s first truly flexible decentralized digital currency. In contrast to Bitcoin, which relies on preset protocol values to determine supply, NuBits combines the power of blockchain technology with the wisdom of human judgment.

The future of Nu is bright!

Text was slightly modified for /r/cryptocurrency