Jordan doesn’t care about who pays the spread. He dosen’t care about the high compensasion to LP with 10%+ per month, also doesn’t care about the NSR-NBT dual direction transfer efficiency (90% common money lost).
In his dictionary, there is no accounting at all. Who pays the XXX? The naive liquidity engine model believers, the crypto speculators, the gamblers.
Below is a graph of the figure we use to determine the size of our daily NuShare sale or NuShare buyback, the Deviation from T1-T4 Reserve Equilibrium:
In less than two months, the deviation from equilibrium has declined 36%, resulting in daily NSR sales that are 36% smaller. On December 17th, just before the Poloniex delisting announcement, the deviation from equilibrium was $-53,313. Despite the undeniably negative affect of being delisted from Poloniex and Bter, the deviation from equilibrium moved 17% closer to equilibrium in the month after the announcement.
The consensus position in this poll was that NSR buybacks would never occur again. The most recent data (in addition to earlier data) suggest the consensus view will prove to be incorrect. It is possible that the deviation will change direction and increase due to some negative factor emerging, but it would take a problem much bigger than the Poloniex and Bter delisting, because the affect of those was to cause the deviation figure to pause in its trend toward equilibrium for a few weeks.
So you want to express is NSR or will happen to buy back?
The Deviation from Reserve Equilibrium figure can be negative or positive. When it is positive, NSR buybacks will occur. When it is negative (as now), NSR sales will occur. The magnitude of the deviation determines the size of daily NSR buybacks or NSR sales. If the deviation is far in negative territory, a proportionately high quantity of NSR will be sold. The NSR sales have the affect of moving the deviation closer to 0, closer to balance. As this happens, the quantity of NSR sales is reduced until the deviation is 0, the point at which neither NSR sales or NSR buybacks occur.
Under current rules, two months ago on 11/24 we would have needed to sell nearly $700 worth of NSR each day, or 1% of the deviation. Today, because the deviation is only $44,157, we only need to sell $441.57 worth of NSR each day. If we sell NSR, US-NBT or CN-NBT at rates that exceed our expenses, then the deviation from equilibrium will decrease (if negative like now).
Ultimately, it is our hope to sell a great deal of currency, causing the deviation from equilibrium to be highly positive, resulting in large daily NSR buybacks. Although I am not satisfied with our progress, the graph clearly shows we are making regular movement toward NSR buybacks.
Good progress toward NSR buybacks continues to be made. Here is a chart of the Deviation From Reserve Equilibrium:
This figure has halved in the last two and a half months. That means the amount of money the rules require us to raise each day from NSR sales has been cut in half in that time. As the figure approaches zero, the number of NSR sales each day will get smaller and smaller. Under current conditions we are increasing the NSR supply by about 2% each month, a modest sum compared to over 50% per month for a couple of months in late 2016. This is a dramatic reduction in rate of dilution. If the NuBit supply continues to grow as it has in the last couple of weeks, we can expect NSR sales to become NSR buybacks, causing NSR to become more scarce so long as the NuBit money supply is increased in excess of expenses.
Here is a chart of the NuBit Money Supply (US-NBT and CN-NBT):
Over the last couple of weeks. the money supply has risen 7% from its bottom.