Supply, Reserves, and Equilibrium (superseded by automation)

[dysconnect]

The weakness of Tether are its single point of failure and strong KYC requirements. But turns out to be still more robust and utilized than what we got ourselves in.

[Phoenix]

@dysconnect wouldn’t you agree it is past time to burn the funds you have a key to as a member of FLOT, as it is clear FLOT is no longer functioning? This combined with my request that, as shareholder appointed Chief of Liquidity Operations,all FLOT funds be burned should be enough. However, if you would like me to advance a shareholder motion specifically requiring FLOT to burn all US-NBT and NSR, I will do that.

So, my question to @dysconnect and others who have FLOT keys (@Dhume, @ttutdxh, @cryptog, @jooize , @woodstockmerkle and @masterOfDisaster) is: will you sign transactions to burn all the FLOT funds you have keys to? If not, why not? Secondarily, if the answer is no, would you burn funds if specifically instructed to do so in a passed shareholder motion?

[Sabreiib]

We can beat Tether! As long as we use F A Hayek’s model.

[ConfusedObserver]

wouldn’t you agree it is past time

I’m not @dysconnect, but I agree that having funds at FLOT doesn’t provide Nu with much use recently.
Wouldn’t you, @Phoenix, agree in turn, that it’s past time you answer some justified questions that have been asked repeatedly?

We can beat Tether! As long as we use F A Hayek’s model.

It will be harder to implement Hayek’s model than just running a pegged token.
You need a way to compensate the increasing spending power of the tokens.
That means you either have to sell even more tokens or NSR to continuously increase the reserve (continuing the ponzi scheme) compared to just running a pegged token.
Or you have to make even more revenue to increase the reserve.
As Nu can’t even run a pegged token without embedding it in a ponzi scheme I wonder how a Hayek token shall work.

[cryptog]

i am fine with burning the funds if it is the will of shareholders.

[Sabreiib]

The answer is extremely simple: if our share market captical is a constant, then we issue a little few coins every year,

E.g. Assume USD inflation is 3% every year, we then issue 97% HYK IN circulation of last year.
Year 1: we have 100,000 USD value of shares, in circulation 25,000 HYK pegged to $1.
Year 2: we still have 100,000 USD value of shares, in circulation 24250 HYK, pegged to $1.03
…
Year 10, in circulation 18435 HYK pegged to $1.35

Year 20: incirculation 13600 HYK, pegged to $1.8

You are smart, why not understand my idea? Lol

In fact, if we manage to peg well to buy power for 3-5 years, our share price will probably goes up, so will our HYK coin market cap. In my model, all the liquidity providing reward is paid by customers, and official community don’t need to pay anything to LP.

Nu is unlikely to become succesful because nu hasn’t followed a correct theory while Hayek’s theory is the most suitable for us.

[Nagalim]

How are you reducing hyk supply without spending share money? Or are you saying hyk supply nearly doubles each year? We have to assume that hyk demand is constant, meaning to increase the price from $1 to $1.03 you have to reduce the circulating supply.

Btw, if you want anyone to take your propositions seriously you need to write a whitepaper or at least a basic writeup document.

[Sabreiib]

Have you noticed that shareholders(LPs) pledge $100,000 value shares to protocol and borrow $ 25,000 HYK from protocol in year 1? It is because shareholders vote for a 4:1 pledge ratio. So any LP candidate need to pledge $4 value share to borrow $1 coin with a SHORT TERM(such as one month) contract with protocol.

If shareholders vote for a ratio of 4:0, ''shut off the valve". then all the HYK in circulation will return to protocol within one month as long as our customers agree to sell HYK back to LPs, otherwise, HYK price may become $3 becasue LP will buy HYK back desperately to avoid heavy loss— pledged share lost to protocol. In one month, we can shrink HYK in circulation to Zero, ie, there is no single HYK in this world. Of course, shareholders won’t be such mad to vote a 4:0 ratio in real operation.

This is the mechanism which F A Hayek suggested in 1976.

[Sabreiib]

Btw

The short-term lending’s beauty is quickly shrink/expand the HYK supply, the software protocol itself cannot perceive real world’s price, supply/demand information, but those shareholders can, they may vote a pledge ratio of Hayek share: Hayek coin according to share price and HYK supply manipulation. If they vote for a zero ratio which completely shut off the supply, within short term, all the borrowed HYK will come back to protocol otherwise the borrowers will lose their more wealthy Hayek shares.

I wrote my whitepaper in July 2016
https://bitcointalk.org/index.php?topic=1513978.0

[Nagalim]

So if the share price goes down 10 fold in a day everyone holding hyk will default and the share price will tank to $0?

[Nagalim]

As the price approaches the collateralization ratio you could start calling in the debt to avoid a black swan scenario (which yours is currently succeptible to). If you did this i would be hard pressed to distinguish between your economics and the economics of bitshares.

[Sabreiib]

When a LP pledge $4000 value of share to borrow 1000 HYK from protocol, he then works on HYK/ USD HYK/BTC pair with 100% reserve. One month later, he maybe has 710USD and 300 HYK coins in his hands, because his trade volume in one month is around $3000 USD( 3 times, turn over rate). Now he has to return 1000HYK to protocol otherwise his $4000 value shares wiil be kept(maybe auction sell /destroyed later) by protocol.

He will spend extra 700USD to buy other LP’s HYK or pledge his extra $2800 value shares to borrow new 700HYK in order to finish the old contract.

Yes, the share price is important, just like bitcoin, if BTC price drops to 10%($100) and remain there for several years, that’s a disaster for BTC ecosystem because the hashrate will be destroyed a lot.
In this analogy,
Share price ----- BTC price
HYK coin in circulation ------BTC hashrate
BTC price supports BTC hashrate, HYK share price supports HYK coin supply(quantity in circulation), BTC price long term trend is upwards becausethe BTC minted supply decreases every 4 years, HYK shares price long term is upwards because the longer we manage to pegged to constant buy power, the more confidence our customers have, and in future we can find our revenue and pump our shares. And there is no systematic sell pressure on HYK share price while our NU suffers from the continuious pain selling pressure. In fact, from Sep 2014 to Apri 2016, NSR price flutuated from 100% to 500% of ICO price, which demonstrated our share can be maintain higher than a certain level(usally ICO price) if no systematic sell pressure.

ANd bitshare’s bitUSD, bitCNY has NO anti-inflation feature. Why BTC price soars recently? Mainly because chinese want to trasfer the CNY to USD or other asset, because Chinese government is shameless in over issue such paper money. Many friends of mine has transfered a lot USD, some even buy house in foreign countries. But, Nu tried to mimic such rubbish paper money! People hate such paper money, doesn’t our community understand?

Last but not least, the pledge ratio such as 4:1 is important to avoid such situation: HYK LP give up pledged share to flee with HYK coin/USD in his hands. In most case, the 4:1 ratio is safe enough, but when black swan happens, HYK share price drops to 10%(any reason?) , some LP will run out of our ecosystem. But some other LP will use their USD/BTC in their pairs to buy more cheap shares and give up the old pledge share in contract with protocol, they are still in our ecosystem. This may help recover the share price. And offcial may action sell the HYK share confiscated from the running away LP----help the pegging. We perhaps have 50% chance to survive in the black swan event, if we find our renenue model, we can collect profit as safety foundation(in BTC), then our profit can help us, we will probably survive. If you have 80% chance to survive in a blackswan event, that’s pretty good, isn’t it?

[jooize]

Blockheight: 1,229,740

US NuBits (US-NBT)

Existing: 1,141,186.9743
Parked: 7,196.9467

FLOT*: 303,357.4886
Liquidity Operations**: 528,128.7356
Liquidity Operations***: 77,442.6745
Bittrex: 12,296.7990
Poloniex: 53,995.5756
NuLagoon Tube: 27,370.0000
Nu-owned: 1,002,591.2733

Circulating: 131,398.7543

* BqyRzFtWXDmjxrYpyJD42MLE5xc8FrB4js
** BJLmVRdGFi4q7Zidwzr4CPPsLT6pozR31a
*** B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

Total

Circulating NuBits (*-NBT): 131,398.7543

Reserves

BTC presented as USD.

Tier 1–2

Bittrex: $5027.4361
NuLagoon Tube: $2524.5900

Tier 3

Not in effect.

Tier 4

Nu jooize (Liquidity Operations)*: $7625.4600

* 17owruzTRANDYwCq77bSABQLXBxx3QaCea

Tier 5

Refer to parked amounts for current utilisation.

Tier 6

Montly liquidity of NuShares: $71,823

Total Tier 1–4

$15,177.4861

Equilibrium (buybacks/sales)

Circulation: 131,398.7543
Reserve percentage: (50 - 131,398.7543/80,000) / 100 = 0.4835751557
Equilibrium Tier 1–4 reserve: 0.4835751557 * 131,398.7543 = 63,541.1730694085
Current Tier 1–4 reserve: 5027.4361 + 2524.5900 + 7625.4600 = 15,177.4861
Minimum Tier 1–4 reserve: 0.20 * 63,541.1730694085 = 12,708.2346138817
Move to equilibrium: 0.01 * (63,541.1730694085 - 15,177.4861) = 483.6368696941

Equilibrium is $63,541 in Tier 1–4 reserves. We have $15,177. When $48,364 is raised through NuShare, US NuBit, or Chinese NuBit sales on a combined basis, any additional funds raised can go to NuShare buybacks assuming no updated reserve requirements or funds spent.

[jooize]

Where can I see balances of NuShare addresses? I can see some on https://nuexplorer.ddns.net, but not all.

These don’t show:

• Snf4uyshit1fj8dWKVxHsKTgTrNR61RskY
• SrorKQgYvwzbtzxKwofjSeUntzTbDQf26m

---

Turns out the second character of both should be uppercase.

• SNf4uyshit1fj8dWKVxHsKTgTrNR61RskY
• SRorKQgYvwzbtzxKwofjSeUntzTbDQf26m

[jooize]

Supply 2017–01–20

US NuBits (US-NBT)

Blockheight: 1,239,203

Existing: 1,141,240.5811
Parked: 5,915.1467

FLOT*: 303,357.4886
Liquidity Operations**: 528,128.7356
Liquidity Operations***: 71,817.6245
Bittrex: 16,990.1232
Poloniex: 53,995.5711
NuLagoon Tube: 27,370.0000
Nu-owned: 1,001,659.5429

Circulating: 133,665.8915

* BqyRzFtWXDmjxrYpyJD42MLE5xc8FrB4js
** BJLmVRdGFi4q7Zidwzr4CPPsLT6pozR31a
*** B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

NuShares (NSR)

Blockheight: 1,239,706

Existing: 3,312,719,398

Bonus*: 999,215
Liquidity Operations**: 500,000,000
Liquidity Operations***: 42,916,109
FLOT 1****: 64,344,685
FLOT 2*****: 5,940,000
Poloniex: 65,527,683
Nu-owned: 679,727,692

Circulating: 2,632,991,706

* SNf4uyshit1fj8dWKVxHsKTgTrNR61RskY
** SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv
*** SRorKQgYvwzbtzxKwofjSeUntzTbDQf26m
**** SvtGbNjWE49pTM2TiUZrYKSNkxTJx75mmC
***** Snvrc5q82wfe2NjEjaQAyStpPKseWrsNqn

Reserves 2017–01–20

BTC presented as USD.

Tier 1–2

Bittrex: $14,468
NuLagoon Tube: $2,700

Tier 3 (Not in effect)

Tier 4

Liquidity Operations*: $3,276

* 17owruzTRANDYwCq77bSABQLXBxx3QaCea

Tier 5

Refer to parked amounts for current utilisation.

Tier 6

Monthly liquidity of NuShares: $176,374

Total Tier 1–4

$20,444

[jooize]

Equilibrium 2017–01–20

Circulation: 133,665.8915
Reserve percentage: (50 - 133,665.8915/80,000) / 100 = 0.4833
Equilibrium reserve: 0.4833 * 133,665.8915 = 64,600.7253
Current Tier 1–4 reserve: 14,468 + 2,700 + 3,276 = 20,444
Minimum Tier 1–4 reserve: 0.20 * 64,600.7253 = 12,920.14506
Daily move to equilibrium: 0.01 * (64,600.7253 - 20,444) = 441.5673

Equilibrium is $64,600.7253 in Tier 1–4 reserves. We have $20,444. When $44,156.7253 is raised through NuShare, US NuBit, or Chinese NuBit sales on a combined basis, any additional funds raised can go to NuShare buybacks assuming no updated reserve requirements or funds spent.

Daily move to equilibrium is the amount in USD of how many NuShares will be sold or repurchased every day towards reserve equilibrium.

[jooize]

Supply 2017–01–27

US NuBits (US-NBT)

Blockheight: 1,248,711

Existing: 837,881.9025
Parked: 5,915.1467

FLOT*: 0.0000
Liquidity Operations**: 531,339.1056
Liquidity Operations***: 71,817.6245
Bittrex: 17,389.3116
Poloniex: 50,195.5511
NuLagoon Tube: 27,370.0000
Nu-owned: 698,111.5928

Circulating: 133,855.1630

* BqyRzFtWXDmjxrYpyJD42MLE5xc8FrB4js
** BJLmVRdGFi4q7Zidwzr4CPPsLT6pozR31a
*** B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

NuShares (NSR)

Blockheight: 1,248,704

Existing: 3,313,078,068

Bonus*: 999,215
Liquidity Operations**: 500,000,000
Liquidity Operations***: 42,916,109
FLOT 1****: 64,344,685
FLOT 2*****: 5,940,000
Poloniex: 46,632,616
Nu-owned: 660,832,625

Circulating: 2,652,245,443

* SNf4uyshit1fj8dWKVxHsKTgTrNR61RskY
** SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv
*** SRorKQgYvwzbtzxKwofjSeUntzTbDQf26m
**** SvtGbNjWE49pTM2TiUZrYKSNkxTJx75mmC
***** Snvrc5q82wfe2NjEjaQAyStpPKseWrsNqn

[jooize]

Reserves 2017–01–27

BTC presented as USD.

Tier 1–2

Bittrex: $16,234
NuLagoon Tube: $2,772

Tier 3 (Not in effect)

Tier 4

Liquidity Operations*: $6,496

* 17owruzTRANDYwCq77bSABQLXBxx3QaCea

Tier 5

Refer to parked amounts for current utilisation.

Tier 6

Monthly liquidity of NuShares: $228,870

Total Tier 1–4

$25,502

[jooize]

Equilibrium 2017–01–27

Circulation: 133,855.1630
Reserve percentage: (50 - 133,855.1630/80,000) / 100 = 0.4833
Equilibrium reserve: 0.4833 * 133,855.1630 = 64,692.2003
Current Tier 1–4 reserve: 16,234 + 2,772 + 6,496 = 25,502
Minimum Tier 1–4 reserve: 0.20 * 64,692.2003 = 12,938.4401
Daily move to equilibrium: 0.01 * (64,692.2003 - 25,502) = 391.9020

Equilibrium is Nu having $64,692.2003 in Tier 1–4 reserves. We have $25,502. When $39,190.2003 is raised through NuShare, US NuBit, or Chinese NuBit sales on a combined basis, any additional funds raised can go to NuShare buybacks assuming no updated reserve requirements or funds spent.

Daily move to equilibrium is the amount in USD of how many NuShares will be sold or repurchased every day towards reserve equilibrium.

[jooize]

Supply 2017–02–03

US NuBits (US-NBT)

Blockheight: 1,258,922

Existing: 837,884.3209
Parked: 5,918.2467

FLOT*: 0
Liquidity Operations**: 536,703.6211
Liquidity Operations***: 68,867.3745
Bittrex: 16,511.5412
Poloniex: 44,830.9956
NuLagoon Tube: 24,546.8698
Nu-owned: 691,460.4022

Circulating: 140,505.6720

* BqyRzFtWXDmjxrYpyJD42MLE5xc8FrB4js
** BJLmVRdGFi4q7Zidwzr4CPPsLT6pozR31a
*** B71AkDjzm4S24KoXGoq6W3hynexAyNb9FV

Chinese NuBits (CN-NBT)

Existing: 2,000,000
Parked: 0

Liquidity Operations*: 2,000,000

Circulating: 0

* YhSEw9AGBJ3KtqLrxeQrcsTVk5u57pA88m

NuShares (NSR)

Blockheight: 1,258,717

Existing: 3,313,475,968

Bonus*: 999,215
Liquidity Operations**: 500,000,000
Liquidity Operations***: 0
FLOT 1****: 64,344,685
FLOT 2*****: 5,940,000
Poloniex: 75,642,701
Nu-owned: 646,926,601

Circulating: 2,666,549,367

* SNf4uyshit1fj8dWKVxHsKTgTrNR61RskY
** SiyWZ1WCedKRXLg7u8fmVkUtF3JRC9QATv
*** SRorKQgYvwzbtzxKwofjSeUntzTbDQf26m
**** SvtGbNjWE49pTM2TiUZrYKSNkxTJx75mmC
***** Snvrc5q82wfe2NjEjaQAyStpPKseWrsNqn