I had been warning about suicidal tendencies swirling around the forum for some time. We need to identify exactly what behaviors these are and reject anyone who defends those behaviors.
Voluntarily breaking peg with a fully functional tier 4, tier 5, and tier 6 is suicidal. There is no reason to do it. It destroys confidence. It destroys tier 5 and tier 6.
The solution at this point is to return to the model that was so carefully laid out. We can restore the peg. It is already too late to keep the peg. @masterOfDisaster destroyed it. We need to rebuild it. Doing so will restore tier 5 and 6. If people want our network to succeed, it will. We will have this period of failure in our history. But if we can articulate why it happened and why it won’t happen again, we have a future.
So, first of all understand that the peg is broken. There is no such thing as maintaining a weak peg. Its broken or not. We failed at this point in time. We need to accept that. Part of explaining that it won’t happen again is to remove the actors that chose the irresponsible actions that undermined our entire model.
So, I have made an assertion that the peg can be restored, and that it must be in order to get tier 5 working and to restore the full capabilities of tier 6. Let me explain a little more about that. Understanding that the peg is broken now, we need to restore it by putting up buy side liquidity at 0.995 or more. That is the only way to restore it. Let’s say we restore the peg and tier 4 is completely cleaned out. That is a real possibility. Improvement in the functioning of tier 5 (park rates) will take days or weeks of restoring the peg. So, if we end up with an empty tier 4 right away, we can’t use tier 5 right away. So we use tier 6. We say we are going to sell x number of NuShares each day to get funds to buy NuBits at 0.995. So, in this hypothetical narrative, we have zero tier 4 at a moment in time, but everyone knows it will be refilled from tier 6 each day. Some NuBit holders may choose to sell when there is no wall. Speculators will set a price according to the probability they think they can sell NuBits for more later. Let’s say a speculator says, “Hey, I will buy NuBits for 0.90 because I think I can sell them the next day for 0.995 with new funds from NSR sales are placed on the order books.” That may work, or he may need to try in subsequent days if other sellers beat him to the limited liquidity on a particular day. Meanwhile, as this pattern repeats, tier 5 begins working, because potential parkers begin to have confidence that can sell their NBT for 0.995 when it unparks. This means we can keep the peg a greater percentage of the time.
We do this until the NuShare price is zero and stays there or until we have fully restored deep and consistent liquidity at 0.995. It’s the only way back from the irresponsible choice of abandoning the peg that I can see.
Bottom line is the peg is completely broken right now. The only way to restore it is to buy NBT for 0.995, or at least 0.99 (I do recommend 0.995). An intermittent peg is better than a consistently broken peg. Hopefully the percentage of time that we can keep the peg will increase as we address the problems that brought us here and get tier 5 and 6 working properly again.
However, there is a very good chance that if we put orders for 0.995 that the liquidity won’t be consumed and that we can keep the peg 100% of the time from the moment our liquidity providers decide to do this. Even if we are unlucky and all liquidity is consumed, putting buy orders at 0.99 or 0.995 is the only way back.