Supply, Reserves, and Equilibrium (superseded by automation)

NSR Buyback #18 - Week of January 25, 2016

To calculate the NuBits in circulation, I will start with all 3,218,298 blockchain NuBits - which is the amount at the time of writing.

Excluding tier 4 funds, because these aren’t circulating:
3,218,298 (Total NBT)
-2,000,000 (FSRT multisig)
-103,104 (FSRT singlesig)
-150,000 (JordanLee singlesig)
-162,628 (FLOT multisig)

Using this method I arrive at 802,566 NBT in circulation.
15% of that sets the reserved tier 4 buy side funds at $120,385.

The BTC/USD exchange rate as of the end of Friday UTC was $387.40.
Funds at end of Friday UTC

  • Tier 4 buy side funds controlled by FLOT consisted of 232.8 BTC
  • Tier 4 buy side funds temporarily used for peg support at Poloniex consisted of 49.7 BTC
  • Tier 4 buy side funds temporarily handed over to T3 custodian @Naglim consisted of 5.5 BTC
  • Tier 4 buy side funds controlled by JordanLee consisted of 213.7 (417.7 - 40 - 40 - 124) BTC
  • Tier 4 buy side funds total 501.7 BTC (valued $194,359).

$120,385 excluded from the share buyback calculation equals 310.75 BTC.
501.7 - 310.75 = 190.95 BTC sits in the share buyback pool.
10% of this (19 BTC) will be used for share buyback next week.

That is equivalent to approximately $7,397.

It is my understanding that FLOT will provide @Nagalim with the 19 BTC.

@Nagalim’s exchange addresses related to the NSR buyback:
Bter: 1CWYRjQe7FqemhXuS38ExfPwG2TajDzrpp
Polo: 1PfP4MNz1EHfEnr1YaYXSDdXwFGZYR4Aei

@Nagalim suggested a split of funds: 50/50.
The transaction to transfer funds from FLOT to @Nagalim has been created and signed by me


This is no rocket science, but takes time.
I’d appreciate it, if an NSR holder did the next calculation - and I’m not speaking necessarily of somebody who is already having a role or roles.

If nobody steps up to do it, I will include an operation fee in the next calculation I do.
I won’t sign other transactions related to the buyback that don’t include that fee. If the transaction I create gets replaced, signed and broadcast without that fee, I won’t do any more calculations.
I have come to the conclusion that NSR holders need incentives to start contributing. I’m just trying to motivate the so far passive shareholders :wink:
…and please: don’t step up and from the beginning start doing calculations that include a fee for you - you owe many in this forum.
There’s a lot of work which needs to be distributed between more contributers.


I was unable to verify the mhps’s signature – the link doesn’t work for me.

I moved the transaction into the FLOT/BTC thread and signed it.

never mind. post deleted. I made a mistake and will sign again in the FLOT thread

Will the buyback funds tend to decrease actually?

Of course - they get consumed.
And the amount of BTC used for buybacks depends on BTC rate; the T4 reserves need to back 15% of NBT in circulation.
Lower BTC price :arrow_right: more BTC in reserve required to back the NBT.

A pity, I liked the tone :wink:

Last week I did have 417.7 BTC. Since then I reported these withdrawals:

417.7 - 204 - 26 - 12.9038 = 174.8 BTC

I hold 174.8 BTC instead of 213.7 BTC as suggested above.

I don’t think you should count the T3 reserves as T4 reserves. That was not my intention with that operation. But we can discuss this further elsewhere, it is negligible.

I’m also very wary of counting the 50 BTC that’s in a gateway and not in multisig.

I received 9.5 BTC in each account. If y’all want me to send some back from the bter account, just let me know. It’s a difference of at least 3 BTC. My calculation would go:

232.8 BTC in multisig
174.8 BTC held by JL
total = 407.6 BTC = $157,904.24
That gives overflow of $37,519.24, 10% of which is $3,751.92
Buyback = 9.7 BTC

So I would suggest I send back everything in the Bter account and only perform the buyback with the stuff in the poloniex account.

The 26 BTC were transferred after end of Friday UTC, right?

If so, my calculation is ok.

But they are reserves (albeit currently active ones). They are temporarily down at T3 (my NuBots even T2 or T1.2), but are no liability.
Putting them back to T4 won’t cause move of funds from T4 in turn.
They need to be accounted as T4 in my opinion.

Clearly we need to establish consensus about this, but my interpretation was that we are using BTC to buy NSR because we have too much BTC and it’s a risk, not out of a driving need to buy NSR. If BTC is not in the multisig account (or in JL’s because he was grandfathered in) then it is in use. Because it is in use, we cannot count it towards overflow or we may end up in a situation where we need to ask T3 custodians to give back money in order to do our weekly buybacks, which inverts the whole system and causes it to knot. The only exception to this that I know of is NuSafe, because it does not require a stream of funds due to its stable nature.

This is a valid point. I’m inclined to agree.
Including it in the next calculation should suffice.

I have the same basic concerns about that 50 BTC that’s in the gateway.

Absolutely right!
We really need BCE to change that :wink:


I agree with @Nagalim, with BTC price declining or at the very least not going up, combined with no significant increase in Nubit demand our overflow on top of reserves is declining. Being more conservative with money we spend is smart business in my opinion, would be surprised if shareholders would not agree.

We can always buyback more NSR later. :sunglasses:

So that’s 2 of 5 FLOT say send back the 9.5 BTC in the Bter account? Or is your vote to just do the buyback as is @masterOfDisaster?

Edit: Forgot about this

Maybe we should just make sure we do stuff right next week? Thoughts @dhume? Should I send some back?

I second that!
I already wrote about stopping NSR buybacks and creating diversified reserves first.

Once I’m back at my PC, I can provide a status of the BTC funds at Poloniex.
Or you have a look at the liquidity they broadcast.
There might be more than 50 BTC at Poloniex.
I say, do the next buyback like planned.
Use the next week to find improve it, find consensus where necessary, develop alternatives.

so at the very least, everyone agrees that only three things count for T4 buy side?

  1. FLOT multisig
  2. JL’s grandfathered BTC
  3. NuSafe

We take the balance of each of these on friday. (NuSafe is of course assumed to have stable balance)


I find this proposal reasonable and agree.

I would favor reducing the ammount of this week’s buyback. I would also support slowing down or putting buybacks on hold, especially if the PPC reserve gets shareholder approval.

The funds at Poloniex’ NuBot operations are at the moment:

Sun Jan 24 20:41:42 UTC 2016
status of (former) sell side gateway:
nud getliquidityinfo B | grep BETwD8nSjtj9ADSvej2na34xmsMYwPRymv -A 2
        "BETwD8nSjtj9ADSvej2na34xmsMYwPRymv" : {
            "buy" : 13082.98,
            "sell" : 5127.7376
status of (former) buy side gateway:
nud getliquidityinfo B | grep BFGMPykfKxXZ1otrCZcsbnTwJjKHPP9dsP -A 2
        "BFGMPykfKxXZ1otrCZcsbnTwJjKHPP9dsP" : {
            "buy" : 20070.39,
            "sell" : 10187.1611

$(13,082 + 20,070) / 402 $/BTC = 82 BTC.
Does that change your mind?

Well it’s reassuring to say the least! I guess it’s also the feeling that we’ve done so many buybacks already. Feels like we’re spending so much every week.

Edit: Also MoD dont kill yourself taking up so many tasks, we need you! Maybe we should make a sticky with a list of small tasks that shareholders could volunteer for?(like calculating the sharebuybacks, weekly liquidity report, etcetc).