I am not saying we must find a credible way finance Nu before we can do anything else. For example once we have
A Gateway with a build-in USD reserve we CAN have a peg via nbt/btc with very small exposure to btc price and exchange risk. But it needs development. We can start building it while we figure out financial issues. I am particularly interested in hearing @creon’s thoughts of the gateway-wit-reserve idea and how much it would cost to implement.
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I forgot about that proposal with all the chaos. That was a good proposal.
A more elegant way is just changing the Standard from
to 5% of deficit (ON is outstanding nubits) and 100% reserve
ST = 0.05 x (T4BTC - 100% x ON)
The 5% factor is there so there is less impact on the NSR market.
currently ON=980BTC, ST above would be about 49 btc
and the nsr sales changes from
to
If ST > 2500, buy ST amount of NSR
…
If ST < -2500, sell 0.5% amount of NSR or the -ST, which ever is lower.
0.5% amount of NSR is about 4 million NSR, which happens to be very close to the latest calculation result – 3.7 million.
This seems really convoluted. Would it not add to the total liquidity available, and to the future price (the total amount that is backing the buy side) if Nu was sold higher than it was bought back? If it’s the LP’s then the LP’s can back a higher price.
If you are saying we should have a spread wide enough so LPs don’t only get Nu’s reward but also can make profit from trading with the spread. Yes that would help.
Tiered transaction fees (shameess plug warning):
The “deferred transaction” idea is somewhat similar to what creon suggested, but more direct.
2 problems that i see:
- Is 100% reserve gonna guarantee a tight peg in the future? In other words, is reserve a fundamental issue? Isn’t that source of revenues the main problem?
- In order for contractors to accept being paid in nsr, the nsr/btc market needs to be quite liquid. Is the proposed strategy here gonna induce a high liquidity?
And more importantly, to @JordanLee or @Phoenix 
, what was the main cause for the peg loss recently?
If we are not able to identify the root cause, there is no way we can improve.
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-
We should note the fact that Nu is worth 1 USD. When people pay less it is worth 1 USD anyway.
The value is the rule of the game of Nubits -
We should not correct errors through new error
@Phoenix you seem to put this plan forward with a lot of confidence, though it sharply changes the direction of the network. Have you spoken with @JordanLee about it?
I guess the discussion between @Phoenix and @JordanLee was only possible, if my advise from above hasn’t been followed yet.
I criticized Nu’s weakness such as lack of profit(ponzi), no anti-inflation, ignorance of accounting etc from as early as 2014 when we translated the white paper into chinese, but I still have hope on peershare.
I am writing an article to summarize my idea, only a portion finished. I welcome all of you to criticize and improve my writing before I put it on bitcointalk forum to attract some Hayek fans into our community. This is the only way I can help because my invest stuck in B&C.
Do you know how Hayek evaluate the gold? Very vividly, I guess we can also throw this bomb to bitcoin forum.
It may be that, with free competition between different kinds of money, gold coins might at first prove to be the most popular. But this very fact, the increasing demand for gold, would probably lead to such a rise (and perhaps also violent fluctuations) of the price of gold that, though it might still be widely used for hoarding, it would soon cease to be convenient as the unit for business transactions and accounting. There should certainly be the same freedom for its use, but I should not expect this to lead to its victory over other forms of privately issued money, the demand for which rested on its quantity being successfully regulated so as to keep its purchasing power constant. The very same fact which at present makes gold more trusted than government-controlled paper money, namely that its total quantity cannot be manipulated at will in the service of political aims, would in the long run make it appear inferior to token money used by competing institutions whose business rested on successfully so regulating the quantity of their issues as to keep the value of the units approximately constant.”
–F. A. Hayek
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I like this. We need to increase transaction fees.
Hi guys! I’am new here and I’m very concerned about the falling of NBT, I’ve readed about, for trying to understand what is happening, and my first question is!
Whats is a peg???
Sorry if the question is too dumb…
The peg is when we use Nu provided software to keep the value of Nu = $1.
The software uses buy and sell orders on exchanges to accomplish this.
Ohh thank you!! I will read more about it!
We should separate old debt from new. JL should make sure BCE can launch, and decide early what the API should look like.
Nu should consider adapting NuBot for BCE, utilize NuSafe etc. to loosely peg a new coin. BCE should strike a deal with Nu to share trading profits. Promise that old debts will be settled using Nu’s profits, and generate revenue. Then there’s hope that NSR recovers enough to settle old debts soon, and start to be financially healthy.
To begin with, see if Nu’s intangible assets are worth all the trouble above, with the alternative of starting an entirely new blockchain. I believe it is, especially if those who side with BCE join forces together with those who still support Nu to make things work.
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Sending from an exchange account is not supported by all APIs, and of course would also then still require the 2 factor authentication, so an automatic way to do the second part is only possible in very special cases.
The first part sounds to me like you want that 90% of BTC funds are converted to another USD token as long as the remaining 10% have a value of at least 1000 NBT. That’s very achievable, probably around 6 hours to 12 hours of development time for the Nubot if someone doesn’t know the code, @woolly_sammoth or @desrever can probably do it in less.
Thanks for the input.
This part is not supposed to happen often and I think it would be acceptable to just let the operator do it manually once a week, if needed.
Shareholders are currently supporting my motion to cap the NBT supply and establish a full reserve. Support is growing to re-peg at $0.10 USD. In our DAO, anyone can propose an idea. If it has support, you can quickly change the direction of the entire organization, as I am. It is about ideas and principles here, not about authority and obedience.
Here are the results at the moment:
Establish NBT Peg at $0.10 USD
Motion hash: a26f6661ced949166227019f0ee64afe98f7e6b0
% of votes in last 100 blocks: 34%
% of votes in last 10,000 blocks: 7%
This is gaining support faster than most motions that pass. It needs more discussion about whether this is the best number and also discussion about how to implement the mandate, should it pass.
100% Reserve Required For NuBits
Motion Hash: 470ba7bf40099c395b8fb569367d16ce6167c2bd
% of votes in last 100 blocks: 58%
% of votes in last 10,000 blocks: 4%
Voting began less than a day ago, but already shareholder support is at 58%. At Nu, we can rapidly create consensus, even in the case of large and important changes like this. Everyone needs to be thinking about what needs to be done to implement this once it receives formal approval on the 10,000 block span.
Temporary Cap on the NuBit Money Supply
Motion Hash: f8b9e060dc73a97fd28a62ecfdd419114892787a
% of votes in last 100 blocks: 57%
% of votes in last 10,000 blocks: 4%
Voting began less than a day ago, but already shareholder support is at 57%. At Nu, we can rapidly create consensus, even in the case of large and important changes like this. Like with the full reserve motion, everyone needs to be thinking about what needs to be done to implement this once it receives formal approval on the 10,000 block span.
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Let’s talk more about the peg at $0.10. The number one thing we need in the hours and days that pass before this is implemented (if it does end up getting support) is more reserve. NSR FLOT, can you acquire additional reserves now by selling NSR on Poloniex? Just sell a million or two million NSR, then wait a day for the order book to reconstitute.
We should start the new peg with NuLagoon Tube and Poloniex support. In the case of Tube, FLOT ought to trade about half of its reserve on Tube for NBT at $0.10. The other half of the reserve needs to be placed on Poloniex via gateway. I recommend 1% spreads, but that is a matter at the discretion of the operators of Tube and the gateway.
We need NuBot modified to do this. Can we have an emergency build of NuBot that sets the peg at 10% please? @woolly_sammoth? @desrever? If we can’t get a developer to commit to cutting a new build within a few hours, may I suggest FLOT immediately place a bounty on this?
It is an easy change, but we really do need it right now. Re-establishment of the peg is so urgent that we shouldn’t wait for passage of the motion on a 10,000 block span. Once this has support on a 1,000 block span, we should proceed. Will we be ready with software and reserves?
@henry are you on board to do as I have suggested if the re-peg shows support on a 1,000 block span?
Who will operate the gateway at Poloniex? @masterOfDisaster? @zoro? @Cybnate? @huafei?
Remember, according to the NBT supply cap motion that has support:
This establishes that additional NuBits should not be sold at $0.10. It is the interest of Nu to hold on to as many NuBits as possible to make it easier to get full reserve and increase the peg price as soon as possible. While I should have wrote the motion to specifically include Tube and gateway operators, I think the intent is clear that additional NuBits should not be sold at $0.10. Therefore, I will ask @henry and any Poloniex gateway operator to refrain from placing a sell wall initially. You will develop a sell wall as soon as someone sells their NuBits to you.