[Passed] Temporarily cap NBT supply with full reserve

[Phoenix]

We probably don’t need to modify NuBot to proceed today @woolly_sammoth, I have realized. What we need to do is either not put sell walls up at all or put them up slightly above $1.00. The buy wall can be set low using a very large buy offset. That is an asymmetrical offset, which is normally forbidden, as it is a peg break. However, we are all on the same page that a peg break is a part of our reality today.

@woolly_sammoth do you agree the existing NuBot software will be sufficient for beginning liquidity operations now by using a very large buy side offset?

I don’t see any reason we shouldn’t have Tube and a Poloniex gateway placing low buy orders within hours of now.

We need NSR FLOT to increase our reserves by selling NSR and transferring this to Tube and a Poloniex gateway. Who will run the gateway? @masterOfDisaster? @Cybnate? @zoro?

@henry we need to talk about how to make the trades between FLOT and Tube fair in terms of pricing.

Go!

[Phoenix]

On the topic of how to move the peg up going forward, I think I have arrived at some insight on that in recent hours. The problem is that speculators who see where things are moving can take advantage of liquidity providers who are sticking to the official prices.

Assuming we have the motion pass that regulates a $0.10 buy price, we move it up to say $0.15 by advancing a motion to do so. As the motion gains support, we will see the market price move to the new peg level in advance of any formally decided date. If speculators believe the peg is going up and we can keep it, they will buy all the cheap NBT in advance.

Let’s move with urgency. The situation is very fluid right now. The faster we move today the faster we can have our $1.00 peg back.

[crypto_coiner]

. If speculators believe the peg is going up and we can keep it, they will buy all the cheap NBT in advance.

interesting.
not sure if it is true

[woodstockmerkle]

What does the Federal Reserve do for revenue?

"The Fed’s income comes primarily from the interest on government securities that it has acquired through open market operations. Other sources of income are the interest on foreign currency investments held by the Federal Reserve System; fees received for services provided to depository institutions, such as check clearing, funds transfers, and automated clearinghouse operations; and interest on loans to depository institutions. After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury. "

https://www.federalreserve.gov/faqs/about_12799.htm

So if the list is prioritized, then interest on assets held is the biggest earner (which Nu does not have, and I’m not aware of any Crypto assets offering interest other than NBT), followed by “operations” which I would analog to the transaction fees.

(Way off topic, but with so much NIRP around the globe, does the Fed have a problem in that which was once income is now an expense?)

[creon]

Besides the fact that we have the best revenue plan of any type of business in all of history

What does the Federal Reserve do for revenue?

So you are really telling me that you design a currency issuing DAO and yet you don’t know how the monetary strategy of the biggest issuer in the world works? The fed makes no revenue? That’s what you think?

Now back to reality.

Oh please, yes.

[Confucius]

Conversations about revenues at this moment display an inability to prioritize. What matters is we have had our entire liquidity operations team halt operations in flagrant violation of NuLaw and our core mission.

(I know that I haven’t participated in this community for very long, so this comment may seem out of place. But I’ve been lurking here for over a year, and have a stake in Nu and feel I have a stake in this community.)

A person who cannot listen cannot lead. In fact, if a person does not feel like another person listens to them, no amount of speaking out arguing will have any effect, regardless of the quality of the content. This is why effective leaders prioritize listening over being heard. They occupy the space that needs to be heard, and thus, the space that needs to listen first.

The fundamental problem with the community, is that the alleged leader won’t listen. He has instead, ignored the fundamental issue that the community has been hungry for, for the better part of a week, then claimed it was not the issue. Will he let us eat cake?

People will not listen to those who don’t earn their ear, it’s that simple. You had the community’s ear, you are losing it. It’s not economics that are the biggest worry here, it’s much more basic.

Owning up to the roll you played, apologizing for the witch hunt, hearing the community and their ideas to avoid the same problem in the future. These are the big obstacles. The peg is just not nearly as important.

[mhps]

@woolly_sammoth do you agree the existing NuBot software will be sufficient for beginning liquidity operations now by using a very large buy side offset?

This has been tried by @masterOfDisaster

[crypto_coiner]

After paying its expenses, the Federal Reserve turns the rest of its earnings over to the U.S. Treasury. "

https://www.federalreserve.gov/faqs/about_12799.htm

Let us have a look at this link:

Here's Who Actually Owns The Federal Reserve

[mhps]

This establishes that additional NuBits should not be sold at $0.10.

A rising buy-side-only"peg" is not a peg. It is essentially what I proposed here as how to gradually close the spread, except that at the time I proposed it the market bottom was $0.95.

Maybe @Cybnate will feel better to see that the “$0.1 peg” is a misnomer and is not purposed to short change our customers.

@Phoenix It’s best to change the title of the motion from its current form to “Re-establishing a $1.00 peg gradually from a fully reserved $0.10 buywall” , and remove the part that the “peg” is moving one direction only. These changes reflect the nature of the operation, make it harder to game, and have better PR effect.

[Sentinelrv]

@Phoenix It’s best to change the title of the motion from its current form to “Re-establishing a $1.00 peg gradually from a fully reserved $0.10 buywall” , and remove the part that the “peg” is moving one direction only. These changes reflect the nature of the operation, make it harder to game, and have better PR effect.

I think this would help.

[cryptog]

It does not seem that any of the motions will pass any time soon.
No overall support from shareholders.

[Phoenix]

The second motion I mentioned, 100% Reserve Required For NuBits is shown here:

Motion Hash: 470ba7bf40099c395b8fb569367d16ce6167c2bd

The script underlying the output that is the focus of this thread:
Supply, Reserves, and Equilibrium
shall be changed to reserve 100% of outstanding NuBits instead of the current figure of 15%.A maximum of 0.5% of the total NuShare supply may be sold each week. This maximum applies to the aggregate NSR sales by all custodians.

This motion to require 100% reserve is getting 27% over the last week and is trending at 38% currently, so it has a real chance of passing. We ought to discuss it more. Those who do not support the motion, what is the nature of your objection? Would you support a motion to “substantially increase reserves” if nothing specific (like 100%) is included?

This motion needs to be passed to create confidence in our product at this point. While it will cost quite a bit, confidence in our product is what is most valuable, and we need much higher reserves to create it given the poor performance of our liquidity engine recently. Having 100% reserve will give us the luxury of not having our liquidity engine perform well. We won’t be relying on it to keep the peg. Note that the full reserve requirement is phased in by capping NSR sales at 0.5% of total supply per week.

We need to show consensus about how to respond to our recent problems. This is perhaps the best message we could send to our customers. It demonstrates a tremendous commitment to maintaining the value of our currency.

The fourth motion I mentioned, “Temporary Cap on the NuBit Money Supply” is available here, and is shown here:

Motion Hash: f8b9e060dc73a97fd28a62ecfdd419114892787a

A temporary moratorium on the issuance of NuBits will be observed by shareholders and custodians. This means shareholders should not pass any custodial grants for NuBits. Only custodial grants of NuShares will be acceptable. Existing NuBits in tier 4 held by FLOT, FSRT and Jordan Lee must be held at their current address or burned. Compensation can still be given in NuBits to contractors, but only if NuShares are sold for NuBits purchased on the open market.
This moratorium on the issuance of NuBits will lift when the NuBit price is $1.00 again.

This motion is also getting 27% for the week and trending at 38%.

This seem very basic to me. To get the peg back, we need to make NBT scarce. We need to burn it. Just as important, we need to not create more of it until the peg is restored. To those who are opposed, what purpose would you like to grant NBT for while the peg break persists?

[crypto_coiner]

Having 100% reserve will give us the luxury of not having our liquidity engine perform well

That still supposes we are still working on the former liquidity engine –
There is a growing consensus that this liquidity engine is not efficient and people are getting interested in @Cybnate new proposal [Withdrawn] Think big, act small and establish revenue stream

[Sabreiib]

@cybnate, @creon 's “you lose 20% if you don’t park, 10% if you park for 1 week, 5% if you park for 1 month, nothing if you park for 2 months and you gain 5% if you park for more time”???

So this is direct weath confiscate, wow, you guys are insane, I guess seldom customers will ever come back to buy your NBT any more. Cryptocurrency is good at anonymity and freedom, but you guys directly decrease the balance of your customers?!

I believe Jordan’s new pegging at 0.1$ is 100 times better than this proposal, wow, I cannot believe it. Who do you think you are? The big brother? In customer’s opinions, Nu is just a Rogue company if this “weath confiscate” motion passed.

Another important thing is : could you gather 350,000$ within 3 months by selling NSR? I highly doubt about that. Since you have insufficient revenue, the parking is totally a lie, you’ll probably force customers to park again and again. Why not completely discard NBT and introduce NBTEuro at all? Since you don’t care about the reputation.

@creon @Cybnate proposal sends out the information to freemarket that Nu can change anyone’s wealth as wish, while Jordan’s proposal impies that although Nu may make mistakes, but we are trying best to recover customers’ wealth, totally different, and this is serious business, not a naughty game! Jordan’s is obvious more responsible and healthy.

[creon]

You are proving yet again that you neither completely read nor understand the concepts you are talking shit about or which you endorse and in your case I am also not sad about the money you wasted because of that (see B&C, or your idea that BKC would be good Hayek money, just so narrow thinking … in another thread you write about 1000USD daily income for B&C, this is just crazy).

Anyways, here you lose money if you don’t park. This is a way to escape the black swan. If it would have been chosen early on in Nu’s life then a moderate fee would have allowed you to run it with a competitive business.

And btw, I just bring this idea up, I don’t own a single NSR and I also didn’t own any NSR when you threw all your customers funds out of the window, so I don’t feel responsible in any way to bring this back to life.

Honestly, for you and some others here in the forum I would just love to see you further following JL into his rabbit hole, it almost became boring reading now that some of you in fact doubt the holy JL. So just do your 10 cent NBT and let him rip you off even more, I am watching from the sidelines and eat my popcorn.

[Sabreiib]

Anyways, here you lose money if you don’t park.

So if I have 100NBT and refuse to park, my balance will decrease to somthing like 95NBT?

[Sebsebzen]

Have you guys considered using something like Proof-Of-Stake-Velocity as an algorithm?

Essentially an negative tax on all NuBits that aren’t parked or recently transferred.

[Sabreiib]

(see B&C, or your idea that BKC would be good Hayek money, just so narrow thinking … in another thread you write about 1000USD daily income for B&C, this is just crazy).

Narrow thinking is copying bitcoin simulating gold, with 1000 alt coins mimicing btc, “narrow thinking” is perfectly defined.

For a small-medium exchange, one million USD trade volume per day is natual, and charging fee 0.1% of it is also ok. With 1000$ profit a day, an traditional exchange boss can only hire several employees in western countries , but thanks for the low cost of the B&C, we can make profit.

Sir creon, next time bring your nobel prize here to criticise Hayek.

[Cybnate]

o if I have 100NBT and refuse to park, my balance will decrease to somthing like 95NBT?

You rather prefer to have 100 NBT and with this proposal you end up having 10 NBT and given no certain revenue stream has been provided it will likely be 1 NBT in another 6 months. Bumping into the same wall twice? I have a problem with that and I haven’t even started talking about the promise to increase the peg without a revenue stream. Who do you think is going to pay for this?

Besides I have never heard of the alias presenting this proposal before Nu had problems. So you are believing a random forum poster?

[Sabreiib]

And btw, I just bring this idea up, I don’t own a single NSR and I also didn’t own any NSR when you threw all your customers funds out of the window, so I don’t feel responsible in any way to bring this back to life.

Honestly, for you and some others here in the forum I would just love to see you further following JL into his rabbit hole, it almost became boring reading now that some of you in fact doubt the holy JL. So just do your 10 cent NBT and let him rip you off even more, I am watching from the sidelines and eat my popcorn.

So I suggest you go since you have no NSR/BKS.

Is it funny for you to watch this movie?

Jordan is not perfect, but still much better than you, the only thing Nu lack of is revenue, pegging to 0.1$ not bad at all, as long as it lasts for many years.