Right, taking the mickey? Let’s clarify a few terms and agree on what is revenue first. Revenue is not profit. Revenue is income:
And yes, it may create liabilities and does create assets nobody is denying that.
Equity = Assets - Liabilities
Nu’s liabilities are all NuBits in circulation not owned by Nu.
Nu’s assets are the reserves we have built from the revenues from selling NuBits
A chunk of the assets have been used for operating costs reducing equity.
Besides that there is also owner’s equity. That are the revenues of the selling of NuShares.
Buybacks are reversing this process and are also reducing the equity.
The interesting part is that with buybacks the NSR price will eventually rise. The equation between the rise of NSR and the cost of buybacks is one to watch. As Nu owns a lot of NSR the net value of Nu’s assets is likely to increase.
And now more on-topic:
Profits can be made from transaction fees (Nubits and NuShares) basically putting the assets to intended use. The profits can be counted as assets in the model above. Operating costs reduce the assets.
Other ways to put assets to good use are loaning the reserves which should provide profits or investing in the client code (the Nu code is an asset) or other tools contributing to Nu.
If there is a lot of interest in discussing and exploring this topic around economics I might split the thread from here on as the thread was only about transactions fees (assets with less or no liabilities = profits). Please quote from trusted sources if you like to make a point, we all have strong opinions and views which is fine but let’s stick to the facts as accepted by sources like Wikipedia.