[Passed] Peercoin FLOT Reserve

[jooize]

I’m available to be a signer for the Peercoin reserve.

[Dhume]

I will be available as a member for the PPC multisig under the same conditions as my other FLOT responsibilities.

Still valid.

[crypto_coiner]

I should be able to make myself available

Still valid –

[Nagalim]

Still valid –

If you want to become a member of FLOT you only have 12 days to pass a motion.

[crypto_coiner]

I’ll propose a motion – thanks for the reminder

[crypto_coiner]

[Passed] Motion to join Peercoin FLOT - crypto_coiner

In response to the need of PPC reserve multi-signer diversification, I make myself available to join Peercoin FLOT. Context: I volunteered to join the original FLOT back in Nov’15 Myself: Hi All, this is crypto_coiner a NuShareholder since NuBits’s inception on Sept. 2014. A Nu community member since the beginning and a long time Peercoin community member, I hold a sizable amount of NuShares as well as Blockshares and I have been contributing to this forum almost every day. I am also a da…

[Nagalim]

@cybnate @crypto_coiner @jooize @mhps @masterOfDisaster @dhume @cryptog @dysconnect

Please get a multisig together and tested before april (15 days). 3-of-5 would be fine, i know @dysconnect and @cryptog expressed hesitations.

[masterOfDisaster]

Please post PPC pubkeys here:

FLOT PPC Operations (buy side)

Relevant FLOT Operations Thread FLOT US NuBit Operations (sell side) FLOT Bitcoin Operations (buy side) FLOT NuShare Operations (buy side) FLOT BlockShare Operations (buy side) Tier 4 Fund Management [Passed] Peercoin FLOT Reserve Create multisig transaction with Cointoolkit (Daology article) Multisig #1 Address pM68K72BBa2KX7Kj2qY5jgTB3AmCUKFQmV Inspect address with Cointoolkit. Redeem script 53210234139729dd413c84a71a0bfd6f236790be861b37311cef3240277c940e4b0c0721031209e2f8429e0fd724607bf…

[crypto_coiner]

At your service–

[mhps]

This

Another 5% of the BTC overflow will be used to purchase PPC to place in the multisig account.

does not agree with this

if the PPC reserve exceeds 5% of the circulating NBT, …

in how PPC reserve is calculated. Is it 5% of the buyback pool (circulating nbt minus 15% minus nusafe) or circulating nbt ?

[masterOfDisaster]

Why not? 5% of the overflow are used to purchase PPC until the PPC reserve exceeds 5% of the circulating NBT.
One defines when to buy PPC and the other until what threshold is reached, no?

[mhps]

OK. It would be great if this ambiguity can be removed.

[Nagalim]

MoD is correct, those are two different situations and could in theory be different numbers. For simplicity i just made them both 5%.

So we have two conditions that can be met both, either, or none.

One condition is ‘btc overflow’ which happens when the standard is positive (i.e. we have more than 15% btc reserves). When this condition is met we seek to buy nsr and ppc with a market velocity of 5% of the btc overflow for each.

The other condition is ppc overflow which has not happened and likely won’t happen for some time. That condition is met when we have 5% ppc reserves with reference to the circulating nubit debt. So:
ppc reserve - 0.05*(nbt debt) = ppc overflow
The market velocity is such that 5% of that overflow is sold for btc.

When both conditions are met the portion of btc overflow that would be used to buy ppc is instead used to buy nsr.

I know it’s complicated, but I thought there was sufficient precident for overflow mechanics that shareholders would understand. I’ll do my best to clear this all up in the upper tier motion. Using the language of the ‘standard’ will be helpful I think.

[mhps]

I know it’s complicated,

It is. I have worked on the buyback script for more than 6 hours today and is still not getting all the cases right.

[Nagalim]

Practically speaking, just ignore the ppc overflow stuff for now. The only changes that matter are like i listed.

1. No more nusafe in buyback calculations
2. Reduce velocity from 10% to 5%
3. Mirror any nsr buys with ppc buys

Let’s just stick with that for now. The complication only comes when the ppc reserve starts filling up (where we’ll need to start using a ppc price feed), but we’ll probably be operating with a different iteration of this motion by then.

[mhps]

a ppc price feed

already got that working. btc-e avg ppc_btc. that was the easy part.

[Nagalim]

What are you coding in? I can probably show you if it’s something im familiar with.

[Nagalim]

All calculations should be done in units of US-NBT

1. Calculate circulating nubuts
   A. N = blockchain nubits
   B. R = reserve nubits
   C. CN = N - R

Skip step 2 for now, this hasnt passed yet
2) Calculate outstanding nubits
A. S = stable reserves
B. ON = CN - S
C. ON = max( ON , 400000 )
from here on i will use CN and make no more mention of ON

3. Calculate peercoin overflow
   A. P = value of ppc reserve using feed
   B. PO = P - 0.05CN
   C. PS = PO0.1
   D. If PS > 1000, take PS to be sold on the market for btc

4. Calculate BTC overflow
   A. B = value of btc reserve using feed
   B. BO = B - 0.15CN
   C. BS = BO0.05
   D. BS is the bitcoin standard. If BS > 2500, take it to market to buy nsr.
   E. Is PO > 0?
   Y->do step D. in this list again, so 2*BS is used for nsr
   N->take another BS to market to buy ppc

Tada!

[mhps]

I have got most of it working. some details in your steps are still missing e.g.

N->take another BS to market to buy ppc

at what rate? 10% as in NSR buyback?

[Nagalim]

BS is the standard. It’s given in units of US-NBT, so you would be buying $BS of ppc.

You’re probably thinking of BO, which is the bitcoin overflow. BS is the derived standard market velocity rate of change thingy. The letters for BS come from “Bitcoin Sell”, to be honest. ‘S’ being ‘standard’ is a happy coincidence.

Also, note there are 4 constants in this equation that are less than 1. 3 of them are 5% (2 market velocities and 1 reserve size), one of them is 15% (btc reserve size). In theory, all 4 could be different numbers.