To say this reduces buybacks as a whole is a misunderstanding i think. This reduces buyback velocity, for sure, but it gives us several things. Firstly, it boosts us to 20% , like you say. No one knows the right number here but many shareholders were concerned that 15% is just too low. I think there will come a day when we are backing 50% with a well diversified portfolio. And that’s where you see the real boon of this grant: we are opening an investment portfolio, and thereby an additional avenue of risk and reward. The use of NBT pegged to a stable value gives us an excellent opportunity to define what is meant by “Buy low, sell high” by referencing 5% of our nbt supply as the neutral point. This causes us to buy when ppc goes down and sell when it goes up.
Anyway, there’s like a million other benefits to having more cash on hand, especially cash that can easily be distributed to shareholders at the drop of a dime in case of cataclysmic failure of what have you. Diversification is a golden thing.
Which brings me to my conclusion: by hedging into different cryptos instead of btc we will broaden our economic impact and stabilize. Does that mean a lower buyback velocity? Of course, the money has tp come from somewhere. However, it also makes us a stronger company, meaning we may be able to continue a sustained level of buybacks that would not be possible otherwise.
We could drop the T4 % to 0 and that would increase buybacks for a couple months before we go broke and have to close up shop. This motion is important, in my opinion, to keep Nu floating so we can do more buybacks (and dividend distributions) later.
