[Passed] Proposal to create a strategic reserve of NuBits

[mhps]

I can’t find the address BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC in the proposal using any of the two explorers. Is this because the address is multisig ?

[Ben]

I can’t find the address BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC in the proposal using any of the two explorers. Is this because the address is multisig ?

http://blockexplorer.nu/address/BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC/1/newest

[Ben]

Isn’t 40,000 nbts a lot of money for just transferring some liquidity?

Time is not free. Liquidity providing isn’t necessarily a one-time thing. If the shareholders didn’t agree with the requested fee, they should not have voted for the proposal.

[mhps]

http://blockexplorer.nu/address/BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC/1/newest

Thanks. Was it because of the glitch ealier today that I couldn’t find the address, or something was fixed?

[Ben]

I didn’t make any changes to the explorer, so I’ll go with “glitch”

[mhps]

oddly this also says unseen address https://svr1.nubitsexplorer.nu/address/BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC

[Ben]

That explorer may not be configured to handle multi-sig addresses, yet. @Cybnate would have a better idea of the status. I know it’s pretty bare bones (no NSR tracking, etc.)

[Cybnate]

It is barebones indeed but should see all NuBits transactions. Have raised an issue with Matthew about that. I suspect NuNet is using some special trick to handle multi-sig addresses.

[cryptog]

they should not have voted for the proposal.

I am not advocating ignoring the cast votes of course

[mhps]

This proposal was passed long before burning NSR for NBT was approved by shareholders. The Strategic Reserve is 4M printed money with no backing. It is supposedly to be used when there is a high demand of NBT so that the sell side of the PEG is running very low.

I think either the Reserve should be burned or any use of it must be followed by a NSR burn or a dividend distribution so the new NBT in circulation is backed by increased marketcap of NSR.

To put it in simple speaking, it is not logical to auction undistributed NSR when the buy side is low but not to burn circulating NSR when sell side is low.

[masterOfDisaster]

To revive this old thread and possibly continue it with a new direction:
As the tier 4 management discussion goes forward, I think NSR holders might be interested in adapting the control over the FSR to move it away from an anonymous FRST (or is the number and identity of the individuals controlling the funds known?) and put it into the hands of elected fund managers.

The tier 4 management discussion just has begun, but I think a discussion about the FSRT can be held in parallel, because both topics share a lot of the operational business.

Both need to answer questions like:

• what are the (objective, measurable, verifiable) conditions under which funds (and how much vlaue) get released
• how to eliminate single points of failure (in particular: how to bring the funds to market without putting them in the hands of one single person, the person that holds the exchange account?)

The last point obviously isn’t relevant for the tier 4 fund management, but I consider it important for the FSRT:

• what happens with the proceeds (I think a clever combination of all that follow would be wise)
• buy NSR and burn them?
• fill tier 4 buy side with BTC to keep the relation between tier 4 buy side and NBT in the wild intact?
• distribute PPC dividends?

[desrever]

I think that if anything, part of the funds should be burned because given how things went, we don’t need that much liquidity, not even if we get on the first page of the wall street journal. Jordan recently wrote

As an aside, there is a consensus that most of the NuBits in their possession should be burned, as the amount is far more than would ever be needed over a couple weeks. Expect a motion on this soon.

As for the anonymous part of it, I am ok with it. Is enough for me knowing that participants have been in Nu for more than a year accomplishing their mission successfully .

[mhps]

Yes knowing that 4m NBT exists has been worrying me. 100k seems more appropriate.

[Cybnate]

Yes knowing that 4m NBT exists has been worrying me. 100k seems more appropriate.

I believe the funds are in good hands and in multi-sig NBT addresses. But it doesn’t suit our decentralised Nu business model. To much potential control in the hands of a few. And I agree with @mhps, the size of the fund can be reduced. We can create large amounts of NuBits in a week anyway. Voting apathy would be our only enemy, but I think when there are significant dividends in sight by creating large amounts of NBT you would not see any of that

[masterOfDisaster]

I believe the funds are in good hands and in multi-sig NBT addresses.

I believe so too, but I second that it doesn’t suit the decentralized Nu business model.

We can create large amounts of NuBits in a week anyway. Voting apathy would be our only enemy, but I think when there are significant dividends in sight by creating large amounts of NBT you would not see any of that

This brings focus on another topic NSR holders need to discuss: what to do with the proceeds of sold NBT?
I think I will create a new topic, because what I’m going to say has to do with the FSRT, but reaches much further.

[masterOfDisaster]

I recognized that there’s an increased involvement of @JordanLee in Nu’s liquidity management to help dealing with demand for NBT.

@FSRT, may I ask what happened to the 4,040,000 NBT that are under your control?
I realize that the funds are still at the grant address, but it seems the control over it has been lost in some way.

Can you please explain the current situation?
How many signers signed BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC and how many are required to send from this address?