# Supply, Reserves, and Equilibrium (superseded by automation)

when? in [Passed] Outstanding Nubits it still says voting. the explorer has been down.

No one checked when voting.
Will be traveling. Get back to this later.

https://alix.coinerella.com/panel/#

Are you counting share days? I’m not a fan of counting SDD for motions. Anyway, alix doesnt really say if a motion has passed or not, so honestly i dunno.

Is it just me or is it a real issue that we can’t figure out if a motion has passed or not?

Well, if you want to do it by RPC, you have to test a lot of rolling windows.
Or you parse the blockchain systematically for it (and note the block at which the motion passed; that can be verified by RPC easily) - I don’t have the skill to do that.
What I’m trying to say is: it’s not just you…

By block 862642 both motions were passed in voting and SDD. This was on Friday May 6th over a week ago. Therefore, I will press forward my standard (-\$2335.31) as the official correct one for this week.
http://blockexplorer.nu/motions/success

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Check the following -

this would be how buyback/refill calculated according to [Passed] Standard and Core

Circulating NuBits (CN) = 742015.019400 NBT
NuSafe=30000
Outstanding Nubits = CN - NuSafe = 742015.019400 - 30000 = 712015.019400 NBT
BTC target (BTCTR) = 15%
reserve target = Outstanding Nubits x BTCTR = 106802.25291 NBT
reserve velocity (BTCV) = 5%
The standard (ST) = reserve velocity x (T4BTC - reserve target) = 0.05 * (131.743468 * 456.16 - 106802.25291)
= -2335.31

ST < -2500, sell |ST| amount (\$2560.31) of NSR
ST > -2500 There will be no NSR buyback.

T4 reserve in PPC (T4PPC) = 0
PPC target (PPCTR) = 5%
PPC velocity (PPCV) = 10%
PPC threshold (PPCTH) = \$1000

auxiliary reserve flow (F) = (PPCTR / BTCTR) x (PPCV / BTCV) = (5%/15%)x(10%/5%) = 2/3

PPCTH / F = \$1000 / (2/3) = \$1500

Since ST(-2335.31) < -(PPCTH / F), sell (F x ST = -1706.83) amount of PPC (oops we don’t have any PPC)

ST x F = -2335.31 * 2/3 = -1556.87

Since (ST x F) < -PPCTH, sell -(F x ST) = -1556.87 amount of PPC next week (actually since ST < 0 so there is no selling.

Peercoin standard (PPCST) = PPCV x (T4PPC - PPCTR x CN) = 10% x (0 - 5% x 742015.019400) = -3710.075097

PPCST is not > PPCTH(\$1000), there is no selling PPCST amount of PPC

edited according to [Revision] Standard and Core

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v0.9 implement Outstanding Nubits [Passed] Outstanding Nubits and Standard and Core [Passed] Standard and Core

Nushares buyback calculation as of Sat May 21 00:39:01 UTC 2016
blocks":884199
Total NBT = 1318251.0983

Uncirculating Nubits

Total NBT in circulation is 743972.860700 NBT.

Tier 4 Funds

Tier 4 buy side funds controlled by FLOT

bitfinex BTC mid price is 441.495 USD
btc-e PPC average price is 0.00081 BTC

Tier 4 buy side funds 131.743468 BTC, 0.000000 PPC, and \$30000.000000, valued \$88164.082365 (199.694407 BTC)

Of the 743972.860700 NBT in circulation, 743972.860700 - 30000.000000 = 713972.860700 NBT are outstanding.

15.00 percent of outstanding Nubits, 107095.929105 NBT (242.575633 BTC), are reserved and excluded from the share buyback calculation.

199.694407 - 242.575633 = -42.881226 BTC (88164.082365 - 107095.929105 = -18931.846740 NBT) are in the share buyback pool.
The Standard is 5.00 percent of this, -2.1441 BTC (~ -946.59 NBT)

There will be no NSR buy or sell next week.

Auxiliary reserve flow is 0.666667
PPC Standard is -3569.864304 NBT
-1500 < standard < 1500: There will be no PPC reserve buy or sell next week.

Here, this is where you’re going wrong. I probably phrased the math wrong in the motion (which is probably why I made a mistake), but the words are on point. Take the standard, multiply it by the flow, and compare it to the threshold.

For last week:
PPCST = F*ST = -\$1,556.87
Since PPCST < -\$1,000 sell an amount of PPC worth the magnitude of PPCST (\$1,556.87) using some acknowledged price feed.

For this week:
There are issues here.

You shouldn’t add the \$30k from the stable reserve here, or the PPC value either, just the BTC reserves. This will drastically reduce the standard.

131.743468 BTC stand in the core reserves.
Valued at 441.495 USD, this is equivalent to 58,164.08 US-NBT.
As 107095.93 US-NBT are targeted, we stand at a 48931.85 US-NBT deficit. This is equivalent to ~2446.59 US-NBT below standard.

ST = -\$2446.59
F x ST = -\$1631.06
Sell \$1631.06 PPC

Please fix any mistake and ambiguity in the standard and core motion. I don;t feel comfortable following fixes in follow-up of follow-up posts. I suggest using strike through instead of deleting when editing. No need to revote. I often have a hard time parsing what you say so please make sure the math shown is correct, or interpreting and maintaining of the calculator would be difficult. Nothing personal here. For example didn’t you say

then why the quoted expression at the top of the post wrong?

Here

I think I will follow the motion

The current implementation is based on formulae in Supply, Reserves, and Equilibrium please use/revise based on it.

The motion says 2 contradicting things. What you’re following is the equations. What I’m following is the written word (which literally says ‘times’ instead of ‘divided by’). Anyway, here’s a revised version. As you can see, the only things that change are the equations, which were meant just as an addendum to help clarify anyway.

Sorry to ask a fundamental question.
I still do not quite understand the role of the Standard.
Right now, our reserves are only 12.4% of the outstanding nubits.
So we are way below the minimum 15% threshold.
Why the standard is 5% and not 100%?
Why not 1%? or 50%?
What does this parameter represent?

These three numbers define the behavior of a reserve. The target is the 15%, which you seem to be alright with. The threshold is \$2500 which is more practical than anything. The 5% is a velocity. It is a flexible parameter that says how quickly we act on our debt. We used to do it with 10%, but that affected the NSR price very drastically and was somewhat unwise in my opinion. 5% is much safer. Feel free to debate or argue for another number, but I really think it’s better if we just pick something reasonable and go with it for a little while.

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I’m sorry, here I meant (F x ST) = -\$1631.06

PPCST is not positive, so has no effect. It only has meaning for PPC overflow calculations. That said, it is:
PPCST = PPCV x (T4PPC - PPCTR x ON) = 0.1 x (0 - 0.05 x 713972.86) = -\$3,569.86
Which is precisely what @mhps got.

There are two ways to sell PPC and only one way to buy it. If we have a lot of BTC, but PPC. If we have either a small amount of BTC or a large amount of PPC, sell PPC.

The threshold being the amount that if crossed would trigger NSR sales?

How do u get this figure?
I get 570 0000 NBT
=1318251 (total supply)-151500-150000-54452-218325-173929 (uncirculating NuBits) .

So we are close to crossing the threshold.

We are extremely close to needing to do a small nsr auction, yes. If we do need to do this, i would prefer to see FLOT attempt to do it as a blind auction.

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Note

because MoD convinced me that parked nubits is still liabilities althoug delayed. It would be good to know how many will stay parked next week, which is relevant here, and exclude them.

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The reference equations have been updated. Supply, Reserves, and Equilibrium

You are right. The “Tier 4 buy side funds” is meant to show people in its literal meaning: how much fund is at Nu’s desposal at T4 tier… In previous calculations Nusafe was eventually removed from pool calculation by including it in calculating the “excluded Nubits”. The bug in this version was introduced because Nusafe also appeared in the 15% calculation so I removed it from exclusion. In fact it should still be excluded.

To make it conceptually simple, I will exclude Nusafe from “Tier 4 buy side funds” to call it, wait, what do we call it? Someone please remind me why we want to exclude Nusafe from T4 for pool size calculation please.

ps. will be traveling in the next 8 hours.

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Maybe not that bad. We ignored 100k paraked nubits probbably.

I am still not sure how you get the total nbt in circulation.
Coinmarketcap?
But the how does coinmarketcap get that figure?

every client has it in getinfo rpc command. the script usually gets it from alix