There are nearly 150,000 NBT in the B&C Development fund. Given that parking poses no risks that the fund is not already exposed to by holding NuBits, the prudent course of action will be to park NuBits that won’t be needed during the time they are parked. This is, of course, prudent from the perspective of BlockShare holders, and not NuShare holders. It’s fair and proper to only take into account the interests of BlockShare holders when making decisions with B&C Exchange funds. I just wanted to inform everyone in advance (no B&C funds are parked at this moment), which will permit commenting on the issue before action is taken. The exact plan will depend on how rates move. It will require some guesswork about when rates are at their highest. Most likely, the funds will be parked at several different times and at different rates to mitigate the risk of choosing a single, poorly timed parking transaction. The total NuBits parked should be around 100,000 and will hopefully add several thousand USNBT to the B&C Exchange development fund.
NuBits held on behalf of NuShare holders will not be parked.
It’s fine for B&C to try to attain as many NBT as possible using parking, but it should also be noted that it is in B&C’s best interest to avoid breaking the peg when later using those funds. This is for a variety of reasons, including B&C’s own success and common shareholder interest.
Seeing NBT from T1 being parked would be even more awesome, but T2 or T3 is better than no NBT being parked with regard to “the standard”.
The only thing that worries me: the development funds are not really in circulation.
Parking them does affect the math of Nu’s liquidity situation, but not really the pressure on the buy side.
Those NBT are kind of “parked” already - for BCE development.
So I’m on the fence with this announcement.
From BCE perspective it’s the rational choice - make money with funds that are sitting idle.
From Nu perspective it’s announcing that NBT, which are calculated as “in circulation” (but effectively aren’t) will be used to make some money by parking them.
Once B&C parks development funds, explain to people what happened, how many NuBits were parked at what rate, how much interest they will receive and when the NuBits will be unparked and available again. An example that people can see might help get others to buy NuBits and park them.
Being a shareholder for both, I’m also on the fence as per above reasons. Might slightly prefer the status-quo.
It also reminds me that Nu needs to be able to vote for caps on the interest rates and terms provided. Should be something for roadmap Nu3.0.
From BCE perspective: sure
But Nu’s goal of having NBT parked was achieved as well.
Why should Nu care who parks?
…or do you struggle with the guess that the parked NBT were not really in circulation, because they are held in a development fund?
I fear Nu is not able to keep those and really circulating NBT apart.
The calculation needs to include the BCE development fund NBT just like any other NBT.
If Jordan hadn’t told about the parking, you wouldn’t have known.