Supply, Reserves, and Equilibrium (superseded by automation)

[mhps]

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

• FSRT multisig
  Balance of BhCnQrYrA5LZm871dtMQEXeU93gmqbhdrC is 0 NBT
• FSRT singlesig
  Balance of BFTnCyMX1nsTNp6X7Bcm1qVocvShdbwtMi is 151500 NBT
• JordanLee singlesig
  Balance of B5Zi5XJ1sgS6mWGu7bWJqGVnuXwiMXi7qj is 150000 NBT
• JordanLee singlesig from liquidity ops
  Balance of BT9AWq9r1i6kghZc6LtrvNb2wRFh7JLCdP is 54452.482 NBT
• FLOT 3-of-5 multisig
  Balance of BqyRzFtWXDmjxrYpyJD42MLE5xc8FrB4js is 218325.7556 NBT
• Total parked Nubits is 173929.8905. They are not used in circulating nubits calculation for buyback purposes.

Total NBT in circulation is 743972.860700 NBT.

Tier 4 Funds

Tier 4 buy side funds controlled by FLOT

• FLOT 5-of-8 multisig old
  Balance of 3QDWJ2yqJ5iTUg6cSpAwxx95ba3NG97hzG is 0 BTC
• FLOT 5-of-8 multisig new
  Balance of 3HikFkS2Zinab1TJq7dqp6wSPyLu7i7bhe is 105.70346791 BTC
• Tier 4 buy side funds controlled by JordanLee 26.04 BTC
• NuSafe has $30000 for T4, but not included for buyback pool calculation.
• FLOT 3-of-5 multisig Peercoin
  Balance of pM68K72BBa2KX7Kj2qY5jgTB3AmCUKFQmV is 0 PPC

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.

[Nagalim]

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

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.

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

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

[mhps]

@mhos
PPCTH / F = $1000 / (2/3) = $1500

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 = -$1,556.87Since PPCST < -$1,000 sell an amount of PPC worth the magnitude of PPCST ($1,556.87) using some acknowledged price feed.

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

It’s supposed to be PPCTH/F not PPCTH*F

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

Here

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.

I think I will follow the motion

[Passed] Standard and Core

PPCST = PPCV x (T4PPC - PPCTR x CN)

[Passed] Standard and Core

If ST > (F x PPCTH), buy (F x ST) amount of PPC

If ST < -(F x PPCTH), sell (F x ST) amount of PPC

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

[Nagalim]

I think I will follow the motion

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.

[Revision] Standard and Core

Hash This is an edited text Text: Dependencies 65CB60D096508A7FA9ECC2017B38BC3AFEB5663D - Tiered Liquidity Structure 7b4955e91781e0e32f1e0c0c974fd4a7a9f972a3 - NuShare Buybacks b1ef96aed5c7f9dec482467b254b40c82bf66d23 - Circulating NuBits 6311782b5d731cd45dd6873b24bcd6e62846fb2d - Peercoin FLOT Reserve 25d8226a7aeb47370e8db0c2035296fb7e2c4095 - Bitcoin Reserve Background and Definitions The goal of this motion is to provide a Tier 6 (T6) source for recovering the T4 network when…

[cryptog]

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)

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?

[Nagalim]

[Revision] Standard and Core

These two numbers are called the reserve target (15%) and the reserve velocity (5%) respectively.

[Revision] Standard and Core

Each reserve will have a target, a velocity, and a threshold

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.

[Nagalim]

PPCST = -$1631.06

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.

[cryptog]

The threshold is $2500 which is more practical than anything. The 5% is a velocity.

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

Total NBT in circulation is 743972.860700 NBT.

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

This is equivalent to ~2446.59 US-NBT below standard.

So we are close to crossing the threshold.

[Nagalim]

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.

[mhps]

mhps
Total NBT in circulation is 743972.860700 NBT.

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

Note

Total parked Nubits is 173929.8905. They are not used in circulating nubits calculation for buyback purposes.

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.

[mhps]

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

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

[mhps]

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

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

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.

[mhps]

So we are close to crossing the threshold.

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

[cryptog]

mhpsTotal NBT in circulation is 743972.860700 NBT.

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

[mhps]

I am still not sure how you get the total nbt in circulation.

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

[Nagalim]

why we want to exclude Nusafe from T4 for pool size calculation

Same reason to remove ppc and all other reserves but the ‘core btc reserve’. The concept here is that the way we buy nbt is with btc. If we run out of btc all our operations hit really weird territory where FLOT becomes a complete governmental body deciding which operations get paid and which dont. We need to be concerned only with the btc reserve when determining the standard.

Using outstanding is the assumption that we do have NuSafe funds, though they are not liquid. It puts them in as negative debt rather than positive reserve to indicate that illiquidity.

[mhps]

Using outstanding is the assumption that we do have NuSafe funds, though they are not liquid.

the standard and core motion doesn’t say when to use NuSafe but went on to exclude it in the reserve. That is another reason teh current situation looks over scary.

[cryptog]

moneysupply" : 1318281.749,
How do u get 743972 from moneysupply?

[mhps]

moneysupply" : 1318281.749,How do u get 743972 from moneysupply?

minus the sum of all items before the parked nbt.

[Nagalim]

I agree that more explicit NuSafe liquidation conditions would be bolstering for faith in our reserves.