After much discussion in my earlier draft topic, here is the final motion:
Original draft + tons of disussion
Original discussion topic introducing the idea
If there is a strong desire to make small amendments I suggest to discuss them below and when a consensus is reached we can do another motion to vote in the amendments.
Motion RIPEMD160 hash: e3966c4205ebb2966110218435ad21d9c5c8f2c0
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To overcome the risk of our complete reserve (designated to protect the peg) being in BTC and therefore being exposed to BTC volatility. Shareholder @Dhume proposes to hold 30.000 USD worth of funds currently in BTC to be held as USD on an exchange of his choosing, this operation is to be known as Nusafe. The purpose of this is to create part of our T4 reserve to be value stable and exempt from BTC volatility. In order to do this, part of the T4 BTC funds worth 30.000 USD at the moment of exchange are transferred to @Dhume which he in turn will sell within 24 hours (as fast as possible but sending BTC to an exchange takes time) for USD and hold on his exchange account for Nu.
In order to protect Nu from malicious intent or mismanagement/misuse of these funds at @Dhume puts up collateral worth 100>% of the hedged funds. @Dhume will report an update about the perceived value of his collateral every week. This to alert Nu in a timely matter incase underlying collateral assets see a devaluation that endangers the 100%> collateral requisite. This collateral is to be untouched unless @Dhume fails to returns part or all of the 30.000 USD in BTC (at the moment of exchange) in which case Nu has the liberty to use the collateral to reimburse Nu shareholders for any lost value. This also holds true in case an exchange default occurs causing @Dhume to lose all or part of the USD he is holding. In short @Dhume takes upon him the exchange default risk.
As a member of FLOT @Dhume has already committed to a 36 hour response time and he shall adhere to the same time frame for Nusafe as well. This motion is to remain valid indefinitely and can only be cancelled by @Dhume after 3 months of operation. This means at @Dhume promises to continue this service for at least 3 months and extend his commitment for more 3 month timeframes unless he notifies Nu at the end of every 3 months operation period. Contrary Nu can cancel this commitment at any time they see fit by shareholder motion. Besides shareholder motion @Dhume will use the funds incase all other T4 funds are depleted and the peg is in danger to refill FLOT T4 reserves. He will coordinate such action with FLOT and publicly announce and account if this action is ever to be taken.
Therefore @Dhume is not to take any other action with the funds besides keep them safe and return them to Nu as decreed by shareholder motion or an emergency depletion of T4 funds.
For collateral @Dhume is required to put up 100>% of the hedged amount in USD. For this @Dhume proposes to put up 7500 BKS (valued at the open market between 6-7+ USD a piece at the time of this proposal) which current value is estimated to be 45.000-52.500 USD as collateral. This collateral is to be held in a FLOT multisig address which @Dhume will not be a part of.
For this service @Dhume will charge a 300 NBT fee per month, totaling 900 Nubits per 3 month service period. @Dhume will take payment after every 3 month operation period by requesting a grant to be passed at the end of the operation period. He will also use this grant topic to report anything he deems relevant to know for Nushareholders regarding Nusafe and to state whether he will commit to another 3 month period. The fee is to compensate @Dhume for the loss of access to his funds + the exchange risk which he takes upon himself. Thus shielding Nu shareholders of the exchange default risk that having USD reserves on an exchange would normally hold.
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Verify. Use everything between and including the <motionhash></motionhash> tags.