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A NuShare is an asset that has its value based on giving the owner part ownership of a liquidity engine
This is a liquidity providing machine. Its value is determined by the quality and reliability of its liquidity. So, deliberate and official plans to reduce that liquidity would be deeply injurious to the value of NuShares.
The system is designed to punish NuShare holders for poor liquidity.
It is important to note that all initial purchasers of NuShares were selected by lead architect Jordan Lee on the basis of being a potential business partner - someone who was capable of offering skills and abilities that benefited the Nu network. In contrast to public “Initial Coin Offerings” (ICOs) that other projects have attempted - where shares were sold indiscriminately on a public exchange - the initial distribution of NuShares was very selective.
As the article above ...alludes to, the unique custodial grant, parking rate, and motion voting mechanisms utilized by the Nu blockchain makes all NuShareholders “effectively managers and/or partners in the success of the entity” because “token owners have …control over fund utilization”.
Nu has no legally-recognized management, directors, or employees. It is a global DAO with no national affiliation. The Nu network will operate according to decentralized consensus of all NuShareholders.
http://www.coindesk.com/token-security-research-analyzes-b…/
But that's what makes Nu so special: with owning NSR you not only have shares of a corporation, you have the chance (and the duty!) to decide it's fate as well - in a very direct way, on blockchain, by motions and grants.
By doing a "pre investment" due dilligence, a potential NSR holder qualifies for the "job" of being a shareholder ![]()
Oh, of course there's room for improvement!
1) the upgrade from libdb to leveldb to store the blockchain isn't as flawless as expected and the client release 2.1.x has been postponed. 2.0.3 is still the official client
2) while there are some thresholds that guide liquidity actions, there needs to be more automation
3) it's hard to keep an overview of all the motions and grants that are around...
4) the community is not big enough to push the new products (CN-NBT, EU-NBT, X-NBT) at the same time Blocks & Chains Exchange gets wound up. This limits the untility of Nu products when being used in non-USD areas
5) the liquidity of NSR at exchanges is not very high. NSR sale and buybacks have a bigger impact on market price this way than they had with more NSR liquidity. This limits the effectiveness of buybacks and sales
These are the topics that come to my mind.
e 1) I suppose it's just a matter of time - who knows? There's no urgent need for this upgrade
re 2) the more Nu learns about the market and the effects of actions, the more rules can be defined, which can be put into algorithms and scripts. The buyback calculator is an example for that
re 3) NuLaw tries to tackle this. This project isn't on full speed
re 4) this can only change over time by offering a friendly and hopefully prospering community. Time will tell...
re 5) this is another thing that might be fixed by increased demand for NSR (through success of Nu products; bitsquare and Blocks & Chains Exchange need synthetic fiat products and might increase the demand for US-NBT)
There's still a lot to do, but that's the same for all start-ups ![]()
Why NuShares are a Good Investment (2)
There have been quite tubulent times and I bet it will stay turbulent. But through all the trouble on the way from the start to here, Nu evolved and is stronger than at the beginning.
One remark regarding the price: it's still roughly 25% above the IPO price and if you consider that there have been dividend payments (PPC and BKS) to NSR holders in the order of magnitude of 25% that is a net increase of roughly 65%!...
...it remains to be seen what the future holds.
While there's still a lot room for price development, NSR have been a solid investment for the first 1.5 years.
The product NuBits, which is pegged to USD (NBT, soon US-NBT) speaks (trading) volumes (pun intended) - which is possible through the high liquidty at close spreads (e.g. at Poloniex).
Other pegged products are on the road map: EU-NBT (pegged to EUR), CN-NBT (pegged to CNY), X-NBT (pegged to SDR).
Those together with Blocks & Chains Exchange will increase the utility of pegged crypto currencies offered by Nu.
In the last 1.5 years, Nu could show that it's capable of offering stable, pegged, liquid crypto currencies, which are issued by a decentralized, distributed corporation that acts similar to a central bak without being prone to the drawbacks of the central banks we know (who just try to act in the interest of the land/region in which the central bak is).
Nu makes products and tries to please customers. From satisified customers, Nu can make a gain, by offering services that are appreciated.
One quick overview of important achievments can be found here or for convenience copied here:
provided stable wallets for Windows, Linux and MacOS from the start
formed a formidable community with lots of talented and committed contributors
increased decentralization in may areas, e.g.:
transition (from centralized) to fully decentralized liquidity providing with NuLagoon as an MLP and several ALPs (formerly known as TLLP)
tier 4/6 liquidity to be moved to multi signature custodian group
had nubitsj created (Java implementation of the Nubits protocol)
had NuDroid created to provide a mobile phone app that allows storing NBT while paying with different crypto coins (thanks to shapeshift.io) - in addition to the coinomi wallet
created NSR grants
made tx fee dynamic
got listed to several high profile exchanges
handled 24h trading volume of above 1 million USD without losing the peg
proved that we can transfer the balances of a production blockchain into another production blockchain (is a way to shrink a bloated Nu blockchain if necessary)
proved how impressively effective motions are to achieve consensus
proof of concept for seeded auctions to link NBT directly to NSR in an ongoing process
achieved a nice price-profit ratio of roughly 24% thanks to PPC and BKS dividends
integrated data feeds to be able to delegate the voting behaviour to a data feed provider
Why NuShares are a Good Investment
Contrary to practically all other cryptos, the supply of NSR has actually gone down in the last year. There are less shares on the market now than there were a year ago.
The product, NuBits, is the most marketable decentralized crypto in existence because of its unprecedented price stability achieved without a central banking service.
...NuShares are a governance tool. Therefore, while they also represent a store of wealth and can be transacted as a commodity just like bitcoin, they also bestow power upon their holder. NuShares grant the owner a say over the Nu network, from nuances like interest rates to grand arching motions that decide the future of the project.
The price and marketcap are very low. The price is almost down to the IPO price and the marketcap is under $2mil. This means that purchasing a significant portion of the network (like 0.1% for $2k) is practical for many investors.
The community is active. There are upcoming developments, such as B&C decentralized exchange that will use NBT as its fiat token, that will be a significant boon for the network. The blockchain can pay developers directly and the community is constantly striving to evolve and achieve a better, more efficient and effective network.
Nu is far from being in danger. Once the NSR buybacks are replaced by NSR sales (to remove NBT), it will start to look less brightly. But at the moment Nu is in a good position to do the necessary adjustments, cut costs and get along with the funds for a loooong time.
We stick firmly to the assessment regarding the outlook (with an unchanged liquidity provision scheme!), but an informed reader should also be aware that Nu:
- is already on its way to reform the liquidity provision scheme,
- vastly reduces costs associated with it by using the parametric order book more consequently,
- the new products that are already on the road map create (temporary) revenue and finally
- B&C Exchange will create demand for US-NBT (and future products) and increase the number of transactions (to generate final revenue)
"The NSR price is back up to $0.004000. Judging from the increasing buyback market percentages, the price could go up further in the coming weeks.
When 10,000 NSR become 1 NSR; i.e. 1 redenominated NSR cost about $40.00 today. Once the displayed NSR supply switches from 800,000,000 to 80,000, the perceived scarcity will improve significantly. One NuShare will finally be worth owning."
This is a band-aid solution until e.g. T3 custodians and fixed cost compensation have eased the liquidity situation and improved the reliability of the peg.
Poloniex as the exchange with biggest NBT trading volume is very important for customers evaluating the peg.
[Voting] motion to permit dual side NuBot on Poloniex
We have completed our purchase of 34.1 BTC worth of NSR. We are pleased that we were able to purchase approximately 3,340,853 NSR for burning this week. 2,550,000 NSR have been requested for withdrawal and the remainder will be withdrawn within 48 hours. We will provide transaction details of the NSR burn on or before Saturday or Sunday, similar to previous buybacks.
https://discuss.nubits.com/t/nsr-buyback-16-week-of-jan…/…/9
Please for this liquidity grant on NuLagoon.
Note: It is Nushareholders' obligation to pass this grant according to prior shareholder motions : b5e709a59226b979e4cb59e6d3a3e06b506e3761 and ae07a18b22e20e38d6bf7559e320c1728d7a62dc
https://discuss.nubits.com/t/voting-warning-the-nu-lag…/3232
Merry Christmas!
🍾
🌟
With the support and help from the community, the Nu Lagoon has successfully operated for another 4 weeks.
As reported in the https://lnkd.in/eQCwVgw, the accumulated Custodian Fee is 1421.9 NBT for Pool A, 3338.1 NBT for Pool C and D till 24th Dec.
Shareholders: please grant custodian fee to the pools. BAwbootKP1sWHhuhnYGfaf9nMLfF7LFdVF, 4760.00 NBT
Note: It is Nushareholders' obligation to pass this grant according to prior shareholder motions : b5e709a59226b979e4cb59e6d3a3e06b506e3761 and ae07a18b22e20e38d6bf7559e320c1728d7a62dc show less
Follow crypto_coiner nubits data voting feeds on:
https://discuss.nubits.com/t/new-crypto-coiners-nu-dat…/3138
"@JordanLee motion f99ddf406a32d39be7d614c13dc1ce63c96e4003 passed on Block #613,827 (13 Nov 2015 16:35:29) sets 14 days maximum as the time to allow new members to join FLOT by passing a motion.
That period ends Friday, 27 November 2015, 16:35:39. Around 24h from now.
@crypto_coiner motion is currently 1,748 votes out of 5,000. Even if every block from now until the period ends (24h = around 1440 blocks) votes for that motion, it will not pass in time.
...Definitive FLOT voted members: @cryptog, @Dhume, @dysconnect, @jooize, @masterOfDisaster, @mhps, @ttutdxh, @woodstockmerkle"
https://discuss.nubits.com/t/tier-4-fund-management-d…/…/246
"
We are pleased that we were able to purchase approximately 3,752,710 NSR for burning this week. 2,350,000 NSR have been withdrawn and the remainder will be withdrawn within 48 hours.
...
Thursday, November 26, 2015
Beginning amount of buyback funds: 34.25 BTC (2.91 BTC on Poloniex, 31.34 BTC on BTER)
NSR purchased: 1,752,906 NSR
Market price: 0.00001710 BTC
Buyback price: 0.00001710 BTC (100% of market price)
Exchanges: Poloniex & BTER
Buy walls are set.
Note: Because the most recent market transaction was a sell into our 0.00001710 BTC buy wall, the same market price will be in effect for Thursday, November 26. We have started the process of withdrawing the NSR in our possession from Poloniex and BTER to ensure a quick burn on the weekend.
There is a shareholder who is selling into our buy walls as this post is being written. If you are planning on selling NSR this week, you should consider selling quickly.
We have completed our purchase of 64.3 BTC worth of NSR. We are pleased that we were able to purchase approximately 3,752,710 NSR for burning this week. 2,350,000 NSR have been withdrawn and the remainder will be withdrawn within 48 hours.
We will provide transaction details of the NSR burn on Saturday or Sunday, similar to previous buybacks.
This week shareholders were able to avoid paying the Friday premium prices for NSR. This is a positive outcome from our perspective; we have acquired a larger number of NSR than initially expected.
https://discuss.nubits.com/t/nsr-buyback-9-week-of-nov…/…/14
[Draft] Motion to join FLOT - crypto_coiner
https://discuss.nubits.com/t/draft-motion-to-join-flot…/3074
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