The liquidity engine cannot operate without a peg. Therefore, our first priority needs to be the establishment of a peg. It must be one the market will have confidence can be defended. $0.10 can be easily defended, implying a total money supply of around 70,000 USD.
At this level it will be easy to re-establish NuBits as being backed by full and transparently provable reserves (such as FLOT funds). We utilize the NSR buyback/sale calculations that have been established including the Standard, but change it to require a full reserve.
If the Standard is positive (more than 100% reserve), the peg level gets raised. Through repeated raises in the peg level, the peg returns to 1.00 eventually.
This plan is extremely straight forward and easy to implement. It has only three immediate action items:
All liquidity providers peg NBT to $0.10
Change the Standard calculation to require 100% reserve.
Change NuBot and PyBot to feature a setting for the peg level.
I will be raising four motions: one to mandate a peg level of $0.10, a second to change the Standard calculation to require full reserve, a third to regulate how the peg will be raised in the future to eventually return to $1.00, and a fourth to place a cap on NuBit money supply until the peg is restored back to $1.00.
Essentially, we peg at $0.10 right now. As NuBit demand increases, we don’t issue additional NuBits, we lift the peg up as a one way ratchet. Once the peg is restored to 1.00, the NuBit money supply will expand again, but this time with full, provable reserves. We will also need a cap on the rate of NSR sales, if the recovery of the NBT price outpaces the gathering of reserves.
The most urgent consensus that must be reached by shareholders is the current peg level, so I will advance that motion first.
This motion is being withdrawn because I now favor simply purchasing NBT with NSR sale proceeds. I eagerly support the other two that require 100% reserve and a cap on the NBT supply.
“Establish NBT Peg at $0.10 USD” available at Daology.
Motion hash: a26f6661ced949166227019f0ee64afe98f7e6b0
The second motion I mentioned, 100% Reserve Required For NuBits is shown here:
Motion Hash: 470ba7bf40099c395b8fb569367d16ce6167c2bd
The third motion I mentioned, Plans And Regulations for Peg Adjustment is going to be complicated and difficult to finalize properly. I have included some exploratory text in the draft as a start:
The fourth motion I mentioned, “Temporary Cap on the NuBit Money Supply” is available here, and is shown here:
Motion Hash: f8b9e060dc73a97fd28a62ecfdd419114892787a