What's the point of Nushares?

NuShares
#1

Ok, plain and simple answer. What is the point in nushares?

I’m a two months Nushares owner but I can’t see the utility in Nushares. Yes, I understand we can vote the Parking Rates, or vote Custodians in order to maintain the Nubit = 1 dollar peg but… What is the incentive in doing it if, in all this time, Nushares owners didn’t receive any reward?

#2

Well it all depends on whether your are for the long run or short run, I believe.
I am for the long run.

1 Like
#3

What’s the difference? Is something changing in the way Nushares work in the long term?

#4

If you’re wondering about the reward, if NuBits ends up being widely successful, the network’s valuation will be reflected in the price of NuShares. Also, when shareholders finally figure out ways of making profit through business in the real world, that earned profit will be distributed as dividends to all shareholders, also making NuShares more attractive and valuable. Most of this will be in the long run as Cryptog mentioned and will require a lot of hard work by shareholders.

2 Likes
#5

NuShareholders earn revenue from the sale of NuBits. Those revenues can be used for any purpose, including paying for development, conducting NuShare buybacks, or distributing dividends back to NuShareholders in the form of Peercoin.

Frequent dividends have not yet occurred largely due to exchange thefts that happened in February on BTER, CCEDK, and Excoin, when much of the earned revenue to date was stolen. This will be expected to change as the network recovers and grows.

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#6

So, What is this mechanism that transmits a success in Nubit adoption to the Nushares price? As I understand, It can’t be with nubot fees because they are as low as possible. Am i correct?

#7
  1. Demand of NBT created large buy orders to the selling walls all over the market. The LPCs, overloaded with BTC or USD, ask shareholders for more NBT.
  2. Shareholders prints a large amount of NBT to sell to the custodians, and get a large amount of BTC or USD in return.
  3. Shareholders use the BTC or USD to buy a large amount of NSR to burn, sending NSR prices through the roof because most shareholders don’t sell.
  4. Feeling uneasy to cause huge volatility in NSR price, shareholders use the BTC and USD to buy PPC to distribute as dividends. NSR prices go up due to dividends.

Or something like that.

5 Likes
Another paid article about BitShares?
Another paid article about BitShares?
#8

Very well summed up!

#9

I think mhps laid it out nicely. As demand for NuBits increases, more will need to be created by shareholders to fulfill that demand. The profit made from the selling of these new NuBits can either be used to buy back NuShares and burn them, or buy Peercoin and distribute them to all shareholders as dividends.

Right now Jordan’s goal is for NuBits to replace Bitcoin and USD as the intermediary currency on crypto exchanges. Read Jordan’s posts on this here. After accomplishing this, Nu will have the liquidity, infrastructure, services and trust needed to drive adoption in other contexts.

There are lots of other goals that need to be accomplished before we can reach intermediary currency. Just one example is the goal of decentralizing our liquidity operations. When Nu first started we had a couple custodians providing very large amounts of liquidity. This allowed us to reach the top 10 or even top 3 in volume multiple time, but since the funds were centralized into the hands of a couple custodians, it carried great risk in case of exchange failure, which ended up happening to 4 of our largest exchanges. Since then, a lesson has been learned and we’ve been working on decentralizing our operations through liquidity pools. These are very recent developments.

So as you can see, we have specific goals we’re trying to reach. Right now most of our energy is focused on improving our core product, NuBits. Further in the future once NuBits is developed enough and sustainable, the attention of shareholders will move toward figuring out ways to earn profit with our core product, like any business would. That will hopefully lead to profit for the Nu network and constant and increasing dividends. Once NuBits are perfected, more pegs to other currencies (euro/yuan) can also be added to introduce Nu to other foreign markets.

I try to think of Nu as a business. We’re working hard on our core product right now to ensure it’s successful. Once NuBits is solid, we’ll figure out ways to profit from it. There’s a lot of smart people here. I have faith we’ll figure it out.

5 Likes
#10

Ok, I think I get it. All the money that enters in the system end up in the form of peercoin dividends or in the form of bought and burnt nushares.

I thank you for all your answers.

But now I have another question

Now that I know that new money end up in the form of peercoin dividends or nushares burnt… Aren’t both methods susceptible to insider trading cheating?

#11

Good question.
It has been tackled a bit before. See here.

1 Like
#13

I agree. We will eventually see the Nu network and source code extended in novel ways to create new sources of income for NuShareholders.

#14

At that point in time, what could be other sources of revenues for Nu as a business other than the sell of NBT that could be imaginable, in the foreseeable future? (taking into account that Nu is originally a decentralized and distributed central bank)