Reddit discussion ongoing on the same post: https://www.reddit.com/r/CryptoCurrency/comments/3efref/there_are_two_particular_alternatives_that_i/
I posted a reply in that article about NuBits burning yesterday, yet it still hasn’t shown up…
This was the comment I posted in case it doesn’t get listed.
[quote]“The odd thing with nuBits is that the supply can’t be reduced.”
This is actually no longer true. The ever increasing supply of NuBits due to parking interest was identified as a major problem soon after Nu was launched. Since then we’ve taken steps to change the design of the system. Parking interest can still be used to entice people to remove their NuBits from circulation, but if interest needs to be provided for longer periods of time or the rate needs to be raised ever higher, it’s a clear signal to NuShareholders that the NuBit supply is too high and needs to be decreased.
What happens then is shareholders will vote to dilute themselves by increasing the supply of NuShares, auction them off and use the proceeds to purchase back NuBits and destroy them, thus permanently reducing the supply. This method of decreasing the supply has already been used. There used to be 1.8 million NuBits. Shareholders reduced the supply to under 550k.
When demand picks back up again once our decentralized exchange is released, we will most likely have to create more NuBits to satisfy the demand increase. Once these new NuBits are sold to buyers, the proceeds will then be used to purchase back NuShares and destroy them, thus returning the value to shareholders that was taken from them due to NuShare dilution.
This new feature is now mentioned in our price stability section…
It’s also talked about greatly in our history section, which explains all the major events and design changes the Nu network has undergone since its launch in 2014…
I’m not entirely sure either. It sounds like a mix of many different crypocurrency concepts mixed together, but doesn’t actually function the way we understand PoW or PoS blockchains to function.
Chigacoschooler created the ideal reserve mentioned by @crypto_coiner here: IdealReserve: sounds like Nubits, without the working execution
“Thus, until cryptocurrencies like NuBits can be used in regular everyday transactions, there is little incentive to hold them.”
Shapeshift Lens integration basically solves this problem.
It looks like our comments were finally approved by the moderator. Thanks to everyone who posted a comment in support of NuBits.