I’ve had an idea bouncing around in my head for a while (as I know others have, too), but until recently I wasn’t really clear on how it could work.
Tip4Commit and Peer4Commit are great tools, but limited by two things:
- They require a volatile crypto as inputs and outputs;
- The are primarily intended to be used to support technical endeavors.
Peer4Commit’s most recent overhaul did a lot to minimize #2, so that really may be a non-issue. The first item is a big problem.
I’m on my phone right now, so I’ll start with a rough sketch of how Nu can help solve this and flesh it out more when I’m at my computer.
NuBot is designed to maintain a pegged price. NuBot can do this on an exchange in either NBT/fiat or NBT/crypto.
NuBits are intended to act as a stable crypto.
Imagine this hypothetical scenario:
There is a new site, BlockChainProjects.nu, that acts as a clearinghouse for all sorts of different crypto projects. People can promote projects that they want to work on and solicit donations in their crypto currency of choice.
These projects can conceivable be denominated in any type of coin (but let’s start with BTC, PPC, NBT, LTC, and DRK, for this example).
When a donation is made, instead of maintaining the donation in the base currency (which may be devalued a lot due to differing exchange rates over time), the site uses a customized NuBot to immediately sell the crypto on the open market for a corresponding amount of NBT at the current exchange rate of NBT/crypto.
These NBT then are held and assuming our hypothesis is correct, the price of one NBT stays at $1.00, when the project pays out rewards, the original donation should be worth approximately the same as it was when it was submitted.
The recipient of these rewards can chose to be paid in NBT directly, or, denominated in the original crypto. If they want the crypto, the custom NuBot would take the same number of NBT and exchange them for the original crypto at the exchange rate for the day/time of the payout.
Project owners benefit. Sponsors benefit. Most importantly, projects benefit by knowing how much they have to work with and no longer are beholden to price volatility of donated coins that may make a promising, nascent project a failure because the expected funds are no longer worth enough to support further work.