[Passed] NSR auction motion

Everyone who has bid has received a response either indicating the bid is valid and recorded or asking some clarifying questions. If you placed a bid by Bitmessage but did not receive a response, it is possible we didn’t receive it. In that case, I recommend you resend or use a different communication channel, such as the email listed in the OP.

As scheduled, bids are due in a little over 4 hours. All bidders will be informed whether their bid won within hours of the close of bidding and invited to settle if it was a winning bid. Please settle quickly so the auction results can be finalized and made public.

Bidding in the auction is now closed. All bidders will be contacted shortly and the result of their bid revealed.

All bidders have been sent the outcome of their bid, along with next steps to settle a successful bid. If you placed a bid confirmed as valid but have not received a Bitmessage or email, please write to either nsrauction@vistomail.com or Bitmessage BM-2cTihATJ5FwJ7vWBwZmJjr55eFPFWBCmCQ to report that.

What time public these auction information ? :smile:

When every winning bidder has honored the corresponding payment.

EDIT: typo.

Sorry, I didn’t notice your question until now. Here are the auction results:

High bid price: 0.00352 NBT
Lowest winning bid price: 0.001111 NBT
Number of NuShares paid for: 91,507,463
Number of NuShares not paid for yet (not included in proceeds) 8,492,537
Proceeds of auction: 185,014 NBT and 32 BTC for a total of 193,819 NBT value
Average price per NuShare: 0.002118 NBT

If you are among those who haven’t paid in accordance with a winning bid, please do so within a couple days. Those who default on their obligation to purchase NSR according to their bid will be reported to the community so others will know they may not keep their commitments.

Distribution of auctioned NSR is still ongoing, and should be completed within a couple days.

I realize some shareholders will not pleased with the average price of the winning bids. It would have been better to auction fewer shares to increase the average price in retrospect. While a minimum price was suggested, a minimum of 70% of the market value would have yielded no winning bids. It isn’t worth analyzing the deficiencies of this auction too much, because it is already certain that nothing resembling it will ever done again.

In the future, I suggest public bids be solicited by shareholders, which will take the form of a motion including the the price of and quantity of NuShares desired by the bidder. If shareholders pass the bidder’s motion, they will burn NBT as payment. Once the burn is complete, shareholders will pass an NSR grant for the bidder.

The auction was a great success in that it yielded a value approximately equal to half the value of all NuBits in circulation (about 350,000 before the auction). While future results may vary, we have proven that at this point in time tier 6 liquidity can permanently remove half of all NuBits from circulation. We have also proven that by offering a mere 2% premium for parking for 3 months we can remove 56,000 NuBits from circulation temporarily. This amounts to 16% of all NuBits in circulation a few weeks ago. So, we pulled 249,000 NBT or 71% of all NuBits out of circulation over the last few weeks using tier 5 and 6. Of course, tier 5 (parking) is by no means exhausted and could be expected to provide much more buy support if the absolute rate were increased from its current level of 2%. Given that there is at least 125,000 NBT of buy support (that I am aware of) in tiers 1 through 4, this means we have proven we can purchase every NuBit in circulation a few weeks ago at full value. That is remarkable. And this in the face of shutdowns and defaults in rapid succession at our three biggest exchanges, imposing losses via counterparty risk the network was not designed to withstand. With the recent shareholder commitment to use only self funded LPCs, counterparty risk will be removed from our network, in accordance with my original design. This means after the next few months the network will never experience a crisis again from counterparty default.

The way the network has maintained the peg throughout a counterparty default crisis it was not designed to withstand and gracefully recovered brings me great satisfaction and confidence in the future of the network. We have passed a very severe test admirably.



I’m satisfied with the funds raised - while it was not at market value, it has raised more than enough to secure NuBits through a very difficult stretch of exchange defaults and shareholder losses. I don’t think it’s unreasonable to speculate that the full decline in market value of NSR (suffered as a result of fewer exchanges and availability) wasn’t entirely apparent on CMC because NSR liquidity disappeared.

@JordanLee - Given the quote above, will you be advancing a motion soon to burn the remaining 200M NSR? I think the majority of shareholders would support it.


This motion already mandates that all remaining undistributed NSR be burned less than 60 days after the protocol permits NSR grants. It isn’t prudent to burn them until the protocol change because with the current protocol the undistributed shares are the only way to access tier 6 liquidity. I would be happy to cooperate in placing undistributed NuShares in multisig addresses, however.

Distributions for the auction are complete. 93 million NuShares were sold. An additional 3,000 NBT were received since my comprehensive report above. The remaining 7 million auctioned NuShares were awarded to @dongshan, but he has not replied to any correspondence attempting to settle the sale.

Right now there are 191 million undistributed NSR remaining. This means the total outstanding is 1,010,599,684 - 191,000,000 = 819,599,684. Hopefully this number will find its way to coinmarketcap.com.


I’ve sent them a message asking for the total to be updated.

NSR supply has been updated to 816,966,469 on coinmarketcap.com

@JordanLee Would you consider completing the bid of those that have their bid partially filled now that @dongshan has revoked his bid? I think this is reasonable.

The rules don’t obligate me to do that, and doing so would be contrary to shareholder interests.

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How so? thanks for elaborating

The initial motion stated that 100 million NSR would be offered for auction, not that 100 million NSR must be sold.

My interpretation of the motion is that selling an additional 7,000,000 NSR after the conclusion of the auction would dilute every shareholder’s equity, and so it would be contrary to shareholder interests.

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I see it the opposite way. If NSR is auctioned, it is committed to be sold.

Thought experiment: imagine 4 qualified bidders had won the entire 100M lot, and then not fulfilled any of their obligations to purchase. Common sense would dictate that the next bidders in line would be considered the highest valid bids. It sounds like the same thing happened here, on a much smaller scale.

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How about putting it to two motions? See which one passes 50% first, or which one has the highest votes after N days.

Perhaps we can find some people who were discouraged by what they saw as a high buy in price to come together and cover @dongshan’s non-paying bid. I mean we are trying to raise as much money as possible, right?

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