[Passed] Temporarily cap NBT supply with full reserve


#41

My favorite kind. Good to meet you.


#42

Second


#43

I am heavily editing the OP as the plan gets more details.

I have added a motion to cap the NuBit supply temporarily here.


#44

Why not add a provision to spread the peg by 1-5% until Nu can find another revenue stream?

That might actually get people behind this motion, because it might actually save Nu.


#45

The money is made by the LPs unless it’s teh gateways who does the liquidity provision, which has exchange default risk.


#46

Yeah - Nu won’t make $0.1 on this unless it uses the gateways.
And I don’t think there will be much support from LPs to sign up to putting BTC on the market for this without compensation.


#47

I just added an additional draft motion to the OP, for a total of three. It is 100% Reserve Required for NuBits.

It looks like the system has a limit on the number of posts for new accounts, and I have reached it. I won’t be allowed to post for 4 hours. I have finalized a total of three motions in the OP, however. Voting has just begun on two of the these. Please review the OP, as it has changed.

Can someone please put all three active motions in the Nu voting hot list?


#48

It’s been implemented in PPC and the new protocol has been running since late April.


#49

If Peercoin was going to be adopted by the masses, it would have higher valuation and can afford to hire more developers so would be able to transform faster. then everything you said will lose its base. I guess i am saying that the world is not linear. What pans out is hard to predict but we KNOW that so far PPC has hung on for many years and its USD price has refused to dive.


#50

I like the OP in that it offers a continuous adjustable lever to bring back the peg.

I like continuously, gradually adjustable controls which you can adjust while observing the results. These can be the spread, the availability of the peg (in volume or time), now the pegged price.

But the $0.1 is radical and 1) we don’t have the reserve for it even we keep selling nsr for a month at current going 2) why 0.1 not 0.01 or 0.5? we have full reserve in T4 for $0.023 and current market price is 0.5ish, where it is easy to start gentlly pushing up.

Of course we must face the reality of financing Nu. A credible financing plan could bring back $1 peg in a flash by the speculator/investors. How do we finance Nu operations? That is the key question.


#51

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.


#52

I forgot about that proposal with all the chaos. That was a good proposal.


#53

It might refuse to dive, but that doesn’t mean anything. It was the first POS currency and some people hold it for various reasons, mostly sentimental reasons (something like you are doing with Nu. I hope it is sentimental and not that you actually hope that Nu will go back to 1$). They might be waiting for another pump etc. Many people might still be holding because they can mint every now and then without having to run a node all the time. Also don’t forget that you it is listed in BTC-e and they might keep the prices artificially high. Being on such an exchange for so long is what is keeping Peercoin there. They might have had a lot of peercoins themselves and are either unloading slowly or are preparing for a minipump.

Everything I said was this one sentence? I was talking about this specific model that is full of flaws. What about the rest that I said about your stupid project? Peercoin doesn’t even have to develop that much. Open source is opensource. Take Blackcoin/NXT/NEM/Vericoin and put them into Peercoin. Peercoin devs had 2 years to do that and they haven’t done it yet. Chaning the POS algo on a coin isn’t rocket science! Casper might change things when it comes out, Tendermind might be better overall, but the current state of POS is poor. DPoS is the only one that is currently out perfoming the rest and even BitFury acknowledges that.

There is a reason why POS coins haven’t gained traction and that is that they have more flaws than POW coins. So what you said doesn’t have a base. Big money, isn’t stupid money. Peercoin’s cap was once massive, you forgot about that? Do you think that there are many people out there, who really know what they are doing, that would put their money in projects like Nu and Peercoin?


#54

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.


[Poll] 100% Reserve Required for NuBits?
Nu Blind Auction NSR #1 (closed)
#55

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.


#56

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.


#57

Tiered transaction fees (shameess plug warning):

The “deferred transaction” idea is somewhat similar to what creon suggested, but more direct.


#58

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 :slight_smile: , 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.


#59
  1. 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

  2. We should not correct errors through new error


#60

@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?