We can do it the way you like, it would certainly put in most of the code necessary to do seeded auctions in the future. I would suggest some kind of a cap on how many nsr can be minted, as this could easily be used to generate significant stake and overpower the network, allowing you to lower the price and generate even more stake and basically take over, then spike the price back up before other big players can react significantly. (Especially at the current mint difficulty)
Im worried about the nbt on the market now. We open the flood gates, people trade nbt for nsr at a higher than market rate, driving the share price down further.
What you’re seeing here is an additional nbt use case of burning them directly to participate in liquidity balancing. I support the hell out of that. I’m just worried about the economic implications on the PoS security of allowing free transfer of nbt to nsr. There’s theoretically a particular nsr price att which if the nbt currently on market went through the auction and started minting it could take control of the network overnight.
If there are about 250 mil nsr minting, you only need about 75 mil to mess with the network. At a rate of $0.001/nsr, this is 75k nbt. So anyone with 75k nbt can take over the network. There are about 700k nbt in circulation.
I was wrong about the overnight thing though. You’d have to wait a week for the shares to start minting. At least the attacker increases the difficulty somewhat during the attack.
Youre probably right, that these arguments are far fetched because they depend on a big single actor. And they go away when Nu is healthy with high difficulty. Just pointing out the thought process that led to seeded auctions as a means of throttling nsr creation and responding to network forces more intrinsically than by blockchain vote.
Yep, but you do have a very good point and i was just trying to think of a possible solution. This would work a lot better if we were starting from scratch, or we did some kind of rebalance with NSR in some way. (i don’t count a rebalance of NBT as a possible solution)
One thing i just came up with is, double the NSR dilution, give the original to the buyer of the debt equity swap, take the other “half” and divide it equally among the solvers of the last 100 blocks.
I had some sort of similar idea a while back, but was not articulate enough about it.
The TL;DR-- what if you combined in-chain transactions NBT-for-NSR, combined with time-locking.
i.e.: if market is 1000 NSR per NBT, and in-chain we offered it as 1200 NSR per NBT but time-locked them for say 3-6 months.
If this is done in-chain, we can enforce the locking. This can’t be done on other exchanges (though I presume this could be brought in to B&C – perhaps as a “value-add” service to other cryptos)
A few things
1- the risk is offloaded to whomever wants to speculate on Nu over a period of time … i.e.: the premium of in-chain NSR-for-NBT should be related to the time risk
2- it is a “buy” of NSR instead of a “sell” meaning at the time we need to offer NSR, we are not adding downward pressure
3- they are “locked up”, meaning they won’t all hit the market at the same time, and especially at the time of duress