That is your opinion, but shareholders have made it clear they understand the peg was compromised by clowns who refused to use reserves, parking and NSR sales to protect our currency. To use these methods was our plan, codified in numerous passed motions. The results of not using them were very predictable and should never have been in doubt. Of course the peg would fail in an environment of even slightly reduced demand without the use of reserves, parking and NSR sales. Of course. That was what happened. We didn’t learn anything about the liquidity engine in this case, except the obvious fact that it needs to be used.
The liquidity engine has always worked when used and the peg fails when neither the liquidity engine or reserves are used. Testing the peg with no supporting liquidity and no reserves was perhaps the stupidest experiment I can recall seeing conducted. Why was this, the most stupid experiment of all, conducted on our production environment? It was a rebellion against shareholders, and that rebellion is ending, as all rebellions against shareholders can only have a life measured in weeks at the most.
To see shareholders wrest control of liquidity operations from the failed decentralized model is very encouraging to me. The results of doing so have been spectacular so far. In the week before my election, NuBits rose from about $0.20 to around $0.40, as the market priced in my probable election. It has now been about a week that I have been Chief of Liquidity Operations, and NuBits are hovering around $0.90. I oversaw this incredible and rapid transformation with zero accessible reserves, no park rates and a highly compromised ability to sell NuShares due to the 80% drop in the NuShare price due to the stupidest experiment of all.
So, now we are conducting an experiment on the limits of the liquidity engine when damaged and broken by the stupidest experiment of all. The results have been very impressive. With tiers 1, 2, 3, 4 and 5 still inoperable and tier 6 (NSR sales) at only 20% capacity, we have raised the pricing level of NuBits 350% in two weeks. Most of those two weeks we weren’t even using NSR sales much (because I wasn’t Chief of Liquidity Operations and couldn’t access sufficient shareholder NSR). This shows the liquidity engine is indeed extremely powerful, resilient and effective.
You can keep parroting the ridiculous notion that Nu ran out money to support the peg, but the events of the last week make it particularly clear this was not the case. Even starting with zero accessible reserves as we have, we had enough power to raise the pricing level of our currency 350% in two weeks, even after confidence in our product has been badly damaged by the stupidest experiment of all.
While the stupidest experiment of all certainly shook my confidence in NuBits, shareholders have instituted major changes in liquidity operations that will prevent it from happening again. We are the first DAO, so it shouldn’t be that big of a surprise that we uncovered some undocumented features of the governance model of our DAO.
@Sentinelrv your suggestion to return to the Peercoin community says a lot about what motivates you. You want to be a part of a positive community. That is how most of our unemployed decentralized liquidity providers feel, I believe. The truth is they enjoyed being a part of the community but lost sight of their purpose: to support our currency. Their interests are different than that of shareholders.
Tether has enjoyed more success than us to date. We need to be honest and frank about why. Their model was much more centralized and efficient. We are leaving control of transaction processing, creation of NSR and NBT and motions completely in the hands of decentralized shareholders, but it is time to accept that decentralized liquidity operations didn’t work. It is OK to administer that using a hierarchical structure accountable to shareholders.
NuBits have done well when we have provided good liquidity. Adoption has declined significantly with each of three drops in liquidity in February 2015, March 2016, and June 2016. With me as Chief of Liquidity Operations, I will not permit liquidity to drop as my highest priority. That will lead to success.
One more thing: we have to focus on serving the needs of our NuBit customers. They don’t care that much about whether liquidity operations are hierarchical or peer-to-peer. What they care about is that they can buy and sell NuBits for $1 reliably and easily. I will not lose sight of that.
At current NSR pricing levels, I am very optimistic about our future.