Status of Burn Policy?


#1

Hi Nu people. This is my first post here and I would like to turn the conversation away from rants about the broken peg and start talking solutions.

My understanding of the Nu ecosystem and tier structure is still superficial, but I’m working on it. The more I learn, the more I like the project. I’m wondering about the policy for burning currency, given that the parking mechanism is, at least currently, totally ineffective at reducing supply.

Burning was proposed back in the day, here: **Draft** motion for currency burning

Whether it’s burning for shares, or just simple removal of NBT from supply, it looks to me like a viable means to support NBT value right now. Is this option on the table?

Supply-demand math aside, a nice public bonfire of NBT would put a visible and proactive spin on all the hard work Nu must be doing behind the scenes. Seems like an efficient way to inspire some confidence among the community.


#2

Burning requires ownership of the NuBits or NuShares to remove from (total) supply, so it is not a direct action shareholders can take to reduce circulating supply. Burning ensures network funds can not be lost or misused.

Hope to see more of you.


#3

Instead of burning maybe a new protocol must be instituted where a certain % of all circulating supply are FORCE parked, meaning these Nubits will be taken out of circulation helping restore the 1$ peg.

Maybe NBT holders will be upset about this decision, however force parking means they will be able to receive interest on their NBT once the FORCE parking term is over.(premium maybe?)
Obviously anybody who holds NBT wants it to store value no matter what, I would much rather have my Nubits forcibly parked and help them remain 1$ than for me to see that they are now worth $0.35.

This FORCE parking mechanism should be random, placed on a certain % of random circulating coins and should not force users to hold longer than 1-3 months, also the parking term should be random so not all people will panick sell on the market once their coins are released at the same time, rather their coins should be unparked randomly. I would be okay holding NBT knowing this could happen, because

  1. Peg breaking rarely ever happens, meaning it might happen only ever two years or more
  2. I would rest assured this action happened on everyone’s coins helping protect their 1$ value, and would take a maximum of 1-3 months
  3. I would receive a premium on my forcibly parked coins! And since this mechanism unparks randomly for everyone within a maximum of 1 or 3 months I could rest assured NBT is not simply dumped on the market.

Also we could just do this same version as a coin swap, burning a % of random coins, and exchanging them for new Nushares of 120% value, and releasing them in random order in a maximum period of a month. Randomness is necessary so that people will not just all dump all their Nushares at the same time in the markets, and the 20% markup will give them a safety net for volatility/as an inconvenience for exchanging their NBT.(However this brings the problem of dilution to the shareholders, so the force parking protocol is a lot more fair to shareholders)

Unfortunately these measures seem somewhat unfair and totally against someone’s freedom to use their coins as they wish, however I do want to stress that this should only be done in SEVERE or EXTREME peg danger conditions. I really think that the people who lost thousands of dollars during this peg break would have much rather have their coins forcibly parked than for them to lose all their value.


#4

I Like all yours ideas.

During this break i was thinking about parking my nubits . i mean, if i can’t really have my $ back at the same price as the begining , i would at least prefer to have them parked TO HELP restore the peg and why not a small bonus (even if frankly i don’t care about that one. By the way Force parking should have better incentive than volunteer ones)

So i completedy support the random park of small amount of nubits owners (10% ? 15%? of nubits for 2-3 months ? )
And in extreme mesures , i woud rather have 50% of my nubits forced parked to ensure peg with an annoucement that this is to avoid the buy wall disapearance (= drop of the peg) than having them decreasing value and hope for the best.

With 50% of people’s Nubits, they will be more likely to try not to sell the rest to fast because
if they sell to much we advertise they could break the wall and have regrets for their other 50%.


#5

Indeed! Another idea to help reduce panic is for the wallet to notify what is going on and why that is happening, with a “Learn more” hotlink to link them to a nubits.com page where it explains clearly why they should not panic and why this will be good for them.

The page should say something like:
(“In order to ensure the value of your Nubits does not significantly drop under USD $1.00 the system has triggered a FORCE Nubits parking period where you temporarily loose the ability to sell 50% of your Nubits on the open market. This is is in no way permament, your Nubits will be released within a maximum of 3 months in random order as a last resort to secure the peg. For the inconvenience, the blockchain will reward you a generous premium interest rate on the quantity of your Nubits held in your wallet.”)

Now, what the 50% reduced supply may cause is for Nubits to be valued at 2$ or 1.60$ for a small amount of time, eventually dropping back to 1$ as some Nubits will still be traded at exchanges, but not all. I think it is unlikely it will cause extreme panic because people will have clear explanation of why this is happening, maybe it should even be explained by a video, like the good ol’ days.

Once again, I think it is unfortunate that we Nubits holders have to come up with ideas like this which restrict freedom of our funds, but Nubits leadership needs to notice that we care significantly about the value of our money and will go to any lengths to protect it.

We need more fresh ideas for Nu, I strongly encourage the Nu community to brainstorm and come up with a viable system that we can implement. We are facing extreme competition.