[Passed] Promoting Nubits to internet payment processors, exchanges, and gateways

This proposal formalizes the decision to promote adoption of Nubits by internet payment processors, payment exchanges, and currency conversion gateways (PEGs. Pardon the pun.), according to rationales and near-term plans posted for discussion.

I do not feel it necessary to copy most of the text over mainly because the suggested modifigication of the installation guide should be refined, and the list of exchanges may change. I don’t know if it is proper to include a URL in a motion so I didn’t. If anyone thinks that the motion should be more stand-alone with full justification and references please point out.

Proposal: Promoting Nubits to internet payment processors, exchanges, and gateways
Motion RIPEMD160 hash: 3ca45d3b51b92cac1e8e58b1b515f14bfec44973

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Nu should actively promote Nubits adoption to internet payment processors, payment exchanges, and currency conversion gateways (PEGs), in order to tap into their deep USD liquidity, customer base, existing real-life business penetration, geographically decentralized connection networks among partners, internet-based APIs and infrastructure. To that end the following steps should be taken by Nu marketing and development team, and the community.

1. Prepare the Nu Exchange Integration Guide

PEGs not only offer exchange interfaces but also provide liquidity (acting like Liquidity LPCs). After passing of this motion, a section should be added to tell things that are not known outside Nu community such as:

a) Nu allows PEGs to apply for compensations fees from Nu shareholders at market-determined rates. The interested PEG will need to post an LPC proposal for shareholders to vote.
b) To be a shareholder-approved LPC or not, in addition to buying Nubits from the market, PEGs can purchase Nubits from shareholders or Nu reserve fund custodians at $1/NBT.

A proper proposal template should be made available after this motion passes.

2. Contact a list of selected PEGs

After step 1 is completed official emails/messages should be sent to promising PEGs, by the Nu marketing manager, to introduce Nubits, point out the potential benefit, invite them to integrate Nubits, point them to the integration guide, and encourage them to discuss in the community forum.

The list of PEGs to contact will be determined in community forum.

3. Help the PEGs to integrate Nubits

Interested PEGs are expected to do most of the integration work. However the Nu team and the community should help with integration, because the PEGs may vary in development and cryptocurrency expertise, help by voting on LPC proposals, and help with testing. Nu should treat the interested PEGs as partners.

Once there are several PEGs that have Nubits integrated, Nu will contact price comparison and rating sites such as bestchange and OKchanger to suggest Nubits be included.

4. Contact more potential partners

If the first round of contact and promotion is successful, more potential partners should be contacted. The list of potential partners is to be decided in the community discussion forum based on outcome of the previous steps.

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Verify. Use everything between and including the <motionhash></motionhash> tags.

I am personally fine with the proposal overall.

2 questions:

  • It seems that you include exchanges in PEG although it is not clear if exchanges can be non-biased custodians
  • can you clarify about

Nu will offer to acquire core code

? Tks!

The exchange here are mostly currency exchanges that shows buy/sell prices to customers who come with one currency and leave with another. Currency exchanges make money from spread. There is no orderbook to show and little risk in exchange front-running the customers. For exchanges showing an order book the shareholders have to evaluate. Maybe @benjyz can comment.

I would like to hear form the shareholders how we should require PEGs to have a tight spread (typically 0.2%) if they apply to become LPC. My thought is that PEGs either need to have a market-determined spread to make money, or they need the shareholders to foot the bill (subsidize their operations) in the form of fees. The latter option, if becoming widespread in the long-term, lead us back to the old unsustainable “selling-blood” way.

So I propose to have cost-cap per month f fees for all LPCs. LPC applicants will compete for the fee with the best terms. Those who are approved to become LPCs will receive fees and must have a tight spread as well as report liquidity. Those who don’t receive fees, well, they are not approved for LPCship (for a specific period) and of course can set whatever spread because the shareholders have no control to them.

Please see Method 3 in the rationale post. Nu would like to make simple code that makes selling/buying Nubits implementable easily. As jordan noted some PEGs may want to sell such code to Nu. I think step 5 in the draft should be removed to avoid confusion because it’s not related to adoption of Nubits by PEGs.

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Who will be responsible for that?

Besides that I don’t see what exactly we are voting for in (3) and (4), it sounds more like a good intention. In the end it will all depend on method 3 software that we provide. But again, nobody will feel responsible for it.

Since passing of the motion reflects the will of the majority of the shareholders, I assume the marketing manager (@tomjoad) or an integration developer will take the lead to modify the integration instruction and dev team member such as @Ben to lead the completion of LPC motion template he [already started][1]. I am not sure I should tell who does what in the motion because it is the job of the Nu team manager ( @JordanLee ?) .
Are my assumption correct?

On the other hand any community member can contribute to the documents. I expect my list of exchanges will be used with some possible change. I just don’t want to put a lot of URLs in the motion.
[1]: Determine what information we want to include in the custodial proposal template

Very very interesting and innovative motion, both in term of form and content.

on motion’s form

It is an excellent instance of shareholders steering the wheel of marketing and development team. And this I expect to be the future direction of running this as a DAO. There are challenges to overcome and the experiment should be controlled, aka, can’t go from no control to total control in one motion

For instance, I find declaring deadlines a bit odd for (at least) two reasons :

  1. you do not specify a penalty for not meeting a deadline, nor responsibilities… Who will “pay”, when and how much?
  2. a distributed group of shareholders cannot be completely aware nor in control of the day-to-day schedule of each member of the team.

Instead of voting on deadlines, I think shareholders should be voting on priorities. For example : “create guidelines before releasing a second video” , or “release the third party integration code before the nubot GUI” are more realistic DAO’s goal.

Before achieving control over anything, however, measurement is required. In our case, that would be a visible priority roadmap, or something similar. We do now have several fragmented roadmaps, that will make any attempt of controlling priorities at least suboptimal.

So maybe I would drop restrictions from this motion, and if anything, I’d do another motion requesting a transparent, standardised, public, overall roadmap .

on motion’s content

The course of action defined in the motion along with its rational makes perfect sense and will likely be a step towards increasing the overall value of this network. I am all for it.

I think the motion should define concrete responsibilities, even if its just one person who will be responsible to distribute responsibilities. These person or persons of course have to agree on this beforehand.

From your answer I assume that you would like the Nu dev team to shift some of the team capacity to this endeavor. I would be extremely happy if you can make this happen, but they would have to agree.

I think having some existing PEGs to integrate Nubits to their sites will demonstrate and validate the usecase of using internet e-currency to trade Nubits from a web page. Without such step (Method 2) a developer can write “Method 3” code with skills and vision. But with such step the code could come out in better shape.


I really don’t want to be the downer, but this is not going to happen, and if this would be the case then I am asking myself why we invested into the development of the nubot, which is just the same: a tool to support LPCs, in this case on regular cryptocurrency exchanges.

However, the nubot IS required to be delivered by Nu, not because there aren’t people out there who can implement their own method, but because you really need to put a lot of work and passion into it, which in turn requires a deep trust into the project idea, which in turn most likely makes you a shareholder. I think after developing the TLLP I am in a good position to make this claim: People who are not attached to Nu will never take this risk without a monetary compensation that goes beyond their revenue afterwards.

So in the end its again about printing NBT, which we don’t have, so we would need to print more NSR to burn the NBT. Since we are just about to have a >12% dilution, it is questionable if shareholders would be willing to take an additional dilution into account. If they do, then I would do it quickly before BKS launches so you can ask for more NBT to get burned.

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Thanks for the comments @desrever

I am OK to remove the deadlines as they were not set with good quantitative reasons anyway. The intention is get this going quickly. I think depending on crypto-exchanges and paying high fees to NBT/crypto LPCs to increase Nubits adoption is sinking the boat.

My first answer post to creon came out minutes before your post so I’d reiterate what I said - I really don’t want to be the manager. I understand everyone is busy with good reason.

@cryptog suggested it. I will support the effort if you can give it a go.

If I can do it all by myself I won’t bother to post :wink: Some of the tasks such as sending offcial emails are best done by the Nu team.

From the responses in the rationale thread I gather that people like the idea and no one is against it. It’s a matter of priority whether/when the Nu team member can do it. If they all agree to do what I wish there won’t be the need for a motion. So this motion is here to give the team the basis to set priority to this task.

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I haven’t done any dev work on nubots. I assume the difficulty in implementing it is mostly due to bitcoin volatility and exchange complexity (orderbook mirroring, wall-shaping etc.). These complexities are greatly reduced with dealing with NBT/USD pair only, and having no orderbook on PEGs. That is why I imagine writing wrapper code to interface with PEGs are much easier. I could be totally wrong.
If you think it is difficulty to develop the Method 3 code, would you agree it makes sense to get it from the PEGs who already done it?

Here is what you imagined under method 3, correct? The decentralized exchange development watcher thread

Coinffeine? No. Coinffeine is an application that lets end user to trade in a decentralized way. Method 3 code to let anyone to set up a web site or add something in his/her current webpage so that the users can use the site or the page to buy/sell Nubits.

In short Method 3 code lets anyone who has access to a web server or a webpage (at JS, PHP, html level) to become an exchange or gateway.

Sorry I still don’t get the difference. With NBT support in Coinffeine you can just do exactly what you describe, using BTC or OKPay initially. So every plugin for this decentralized trading system would allow for more possible payment gateways for NBT, which everyone could use to provide liquidity against various fiat units without counterparty risk.

EDIT: Thing is if they do not implement it on their own, then we would need to license it to be allowed to provide it to our LPCs, This could become an issue but can be discussed.

There is no guarantee that Coinffeine or any of the DEXes involving fiat will work any time soon.

Even it works it could become a centralized target for government crack down. The Chinese government is able to render eMule, tor, and many other p2p applications and prorocols it doesn’t like mostly unuseable. Method 3 could just use port 80. You can’t disallow it.

Even the application does work, users have to install something locally, which turn off many people.

I agree that there are more classical ways to implement method 3 options, but still see Coinffeine as one of them. Everything happens between the traders and on the blockchain, you cannot shut it down and there is no deposit to seize. It requires LockTime, but we said so often now that we want this, that I think a motion to implement this would pass.

In fact every LPC could provide several options for the service, a centralized website or this. This would be just the method getting the coins from A to B, not how to be able to provide this offer in the first place.

It is actually @crypto_coiner .

I totally agree that diversity is the key to survival. I hope there will be a plethora of decentralized exchange solutions coming out.

oops. Sorry.

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I have updated the draft to qualify “exchanges” and “gateways” in the definition of PEG, and remove the deadlines.

With liquidity provision project efforts oriented towards trading market places (nupool, nulagoon, liiquidbits etc…), LPCs are mostly certainly not going to make any money and this is not due to the exchange being hacked because it is centralized. This is due to the nature of the business. You just cant make any money when you are being used as hedge by an ultra volatile token.

Now question: Are PEGs going to make money for certain (figures needed in the draft) by being NBT LPCs?
If so, this is a no brainer and shareholders should support the draft as we should pivot.