Holding USD reserves, that is potentially expensive due to the risk of confiscation, I suppose you refer to the equivalent in USD in crypto-currencies.
Maybe we need to define better what NSR is at risk. To me that are the NSR FLOT is holding (25m) as a reserve. As others have mentioned you can argue whether this is tier 4 or tier 6. Suggest to make it all tier 4 in your proposal.
Next thing is that we are looking for a trigger to activate tier 6. With selling all NSR we are already having parking rates for more than 30 days. What timeframe and under what rules do we consider the NSR selling as complete? When they have all been sold to any price? In a day, a week? Does it matter? A better indicator is probably whether the buy side is still under a % threshold.
Given we have already high parking rates for 30 days and have sold all the T4 reserves, the current 15% and the 25m NSR (current T6) are on the exchange for sale decreasing say daily in value with 10% to meet the market. When we can’t keep up meeting the sell demand of the NBT and say the buy side is still sustained under a certain threshold (say 20%), then we would activate RNA.
In this scenario the NSR are still for sale while the RNA gears up with ever higher transactions costs. This would suit your perspective, wouldn’t it?
Thinking of these scenarios the following occurred to me:
I think it is clear that in the above scenario the peg is already lost when T4 is being sold on many exchanges to some extent. The selling of the NBT on exchanges are not subject to transaction costs and speculators would jump in to determine a marketprice based on partly potential Nu reserves left to buyback the coins and emotional senses (not likely to be rational) for the NBT still floating around on these exchanges.
To reduce the risk of this situation from occurring in the first place it would make sense to increase the T4 reserves from 15% to say 50%. I would support that as the above scenario is not attractive as a Shareholder. I also know this comes at a cost as always when you are trying to cover risks. It is a difficult balancing act for Shareholders between costs and risk taken.
Also just like to say that the measures to prevent a risk from occurring are different than the measures when a risk is eventuating and actions are urgently needed to protect the peg and NBT holders. They should be clearly separated out and weighed against each other in future proposals.