I did understand Jordan’s post, up to here:
[quote=“JordanLee, post:10, topic:2367”]
Said another way
[/quote] …
Can anyone reformulate or elaborate this for me:
“Said another way, given the assumptions and extension of historical
trends just described, the proportion of all currency in the world held
as NuBits could drop 7% per year without requiring any burning of NuBits
via NuShare sale.”
BKS is certainly a dividend in my opinion. NSR holders are being cut in on the BKS funding.
Jordan Is saying the world’s economy is growing and to keep up with it we could print ~7% more NBT/year. We are a relative economy (our nbt peg relates us to the US economy) so we should look at inflation and deflation with respect to that economy. I believe that is what JL is saying, that if our NBT production rate remains constant we will actually have a shrinking portion of the US economy.
Nu distributes dividends using cryptoassets that are not native to its blockchain. Whether that cryptoasset is established (Peercoin) or new (BlockShares) makes no difference.
If Peercoin is the asset we use to distribute revenue from NBT sales, BlockShares is the asset we use to collect value from B&C Exchange fundraising. The B&C project is only collecting funds of a portion of its implied market cap because the rest has been distributed to NuShareholders.
So Nu makes money also by raising money now.
Nu didn’t raise any money, B&C Exchange did. Rather than collect 100% of the value of the project through fundraising, B&C distributed 40% of it to NuShareholders as a way to engage the community and encourage liquidity support.
Curious about how you reach that figure.
I actually got a different figure,
85*4 + 50 + 22 = 412 kNBT.
85,000 BKS at $4 a share, then two PPC distributions valued at 50 kNBT and 22 kNBT.
I think the ~2,000 NBT discrepancy comes from that second dividend - I just checked and it was 20,000 NBT.