This grant proposal to fund $100m NSR to the new address is put on Daology and is copied here
The Standard and Core motion currently requires to sell NSR to replenish T4 reserve.
According to the latest calculation 100 million NSR is requested to
be granted to FLOT NSR’s #3 multisig address to make it easier for
members who show up more often to sign.
The grant will be used to replenish reserve and reduce Nu liability.
Although the latest calculation and amount requested are huge numbers, I believe the executor will maintain a proper pace not to over-disturb NSR market.
I believe the principle of having the shares in multisig is good. I just can’t support the amount of dilution this is creating without an end in sight. Total NSR value is already lower than NBT value which hover around 0.85 cent. Either a lot of NBT need to be burnt or even more people need to significantly invest in NSR ($100k+) while it continues to be diluted even further. Not a very interesting prospect imo. I seriously wonder how and where this is going to stop if ever.
With ‘real’ revenue I mean revenue different from selling NSR (which shouldn’t be accounted as revenue), selling NBT (where you can only account the proceeds as revenue, if you account the NBT as liability: zero-sum game) or tx fees (because they barely exist).
Real revenue comes from one of the numerous sources phoenix so far failed to implement (spread trading, negative interest for non-parked NBT etc.)
NBT liability decreases from 700K to 600K in around one month, with this speed, after several months, we can eat up those liability, the free market is partially irrational, you just cannot compute the human being’s fearness, greedy.
To sum up, when NBT pegged well, we need good accounting to operate this company, but if NBT in chaos, no one can calculate the behaviors of free market.
I am sure that seldom Nushareholder will ever like to go through this crisis again, the so called tier 6(NSR) is their nightmare. This machenism is poorly designed, and we must fix this bug in architect.
My rationale is that @Phoenix has shown that he is not bad at massaging the market (not a surprise for someone who created a stable currency by twisting the market’s arm with walls) to move the value of nubits to where the customers want. He has indicated to put a lid on nsr dilution when nbt price gets close to $1. (We will see) This buys time and attracts attention to get long-term revenue silution going.