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.