I’ve been a lurker here for a long time as I have a general interest in decentralized pegged cryptocurrncies. With the right implementation I view this as a huge market opportunity. There are some things about NuShares/NuBits that I like, and some things that are obviously a massive and utter fail.
Clearly, the direction taken here has not been working. What is needed is precisely massive dilution of legacy NuShares holders, who have once again failed to deliver a working product in an increasingly competitive market.
If you want to attract the new capital needed to get NuBits back to $1 and get this project going anywhere, existing holders will need to accept being nearly wiped out, and existing leaders who have used their holdings as a vehicle to voting themselves continued self-enrichment need to be voted out by the new investors with their newly-dominant stake and a clear interest in moving beyond the past. I’m prepared to invest significantly in this project, but only under a heavily-dilutive model that gets rid of the baggage.
- The reserve target should be significantly increased to at least 80-90%. This is necessary to restore confidence, and frankly also necessary since there is no visible revenue model which would support a leveraged system. Once there is a revenue model at some point in the future, then leverage can be increased. For the time being there is zero short term prospects for a revenue model since there is zero rational reason for people to pay to use a system that doesn’t even work.
- Park rates should not be further increased and parking is absolutely the wrong approach to be taken in a failing/failed system. In the short term it should be wound down and deemphasized. It would have a role to play long term, but at this point it is only contributing to the instability by paying very high interest (possibly to the same self-enrichers discussed above), further increasing the unsustainable balance of underreserved NuBits outstanding.
- A portion of reserves should be held in stable assets, not only volatile cryptos such as BTC and ETH.
Will this happen? I don’t know. Existing NuShares holders need to decide whether to accept some token residual stake (say 5-10%) in order to facilitate a fresh start, or not. I’m only a modest existing holder so I have only a small vote, and I’m not willing to throw good money after bad. As I indicated earlier I’m willing to invest substantially to the extent it is sufficiently dilutive of those responsible for previous failures, but not otherwise.