This grant is formalized on Daology. The grant text is the same as recent liquidity operations grants. It will give us the ability to protect the peg and construct a buy wall.
Custodial Grant Address: SURm6wJMGh1YLcRrwrd14GT1XbXSRJMPjV
Custodial Grant Amount: 140000000 (140 million) NSR
Might help to obtain further support to indicate on how long this further dilution is supposed to last. Or maybe a breakdown in cost for liquidity operations and other costs and compensations.
It will last as long as US-NBT demand is in decline, and not a day longer. I am considering creating a thread entitled something like “How NSR buybacks could begin in less than a week.” They probably won’t, but they could. I want people to realize how close we could be, and how little change is required to move into NSR buyback mode. With shareholders having lost control of our reserve and with the great success we have had in (nearly) restoring the peg with only NSR sales, 100% reserve doesn’t make any sense. I will be proposing a new reserve model as a motion quite soon. Let’s say reserve is set at 25% (although the model will be more complicated than that). With the money supply under 300,000, NSR buybacks are likely to begin before reaching a money supply of 500,000. Remember, our money supply was 820,000 earlier this year. Also recall we have sold as many as 64,000 US-NBT in a single day.
Getting Chinese NuBits released is a very important factor in when buybacks will begin. We still need a developer to make the core client changes. Seeing something here besides anger and pessimism would help. The credit collapse initiated by FLOT and gateway operators has been very hard on relationships and mood in the group.
All we need to get NSR buybacks started is a new reserve model and about 150,000 USD in new currency demand, which could come from US-NBT or CN-NBT.
Many people don’t agree with that statement but let’s suppose it’s the best business strategy for Nu leading to a sustainable model…
The problem with a fixed percentage – be it 100% or 25% – is that btc volatility can render the level of reserve insufficient in a day as long as nbt/btc is the main liquidity market.
With gateways that have a built-in reserve (the reserve level in te gateway doesn’t have to be 100%), maintaining a fixed level of reserve will be far less labor intensive and safer.
BTC is going to the ATH soon. I guess this could be the miracle we need to restore the peg if we held the reserves in BTC.