Updates

Why we funded Nu

Having a cryptocurrency with a fixed value is so important.

"So that it can move beyond the realm of a speculative asset and become an important facilitator of commerce. Businesses and consumers need to know what their money will be worth in a month and a year. Bitcoin has solved the volatility problem by partnering with banks via Bitpay and Coinbase, both those are centralized solutions. This will allow commerce without banks on either side of the transaction.

A currency must be fungible, transportable, divisible and a stable store of value. NuBits possesses these attributes more than any other currency in the world. We have a lot of work to do in encouraging them to be widely accepted, however. Soon, we hope NuBits will be used for lending and commerce around the world. It should be very good for international commerce.

Whereas most crypto supporters believe mass adoption will eventually stabilize price, the creators and supporters of Nu believe they have it backwards, that price stability will encourage mass adoption.

Business Model: NuShareholders provide the service of a price stable crypto. This service costs shareholders as one can see from the monthly fees Nu pays out to provide for decentralized liquidity. The job of shareholders is to continuously increase demand and adoption for NuBits. As demand increases, new NuBits are created and sold. The proceeds are then either distributed to shareholders in the form of Peercoin or NuShares are bought back and burned. The transaction fee is also one way that users of the network pay for the service we provide them. The transaction fee slowly decreases the supply over time, which then allows us to create and sell more NuBits again for profit. In the future, NuShareholders will also decide to add more pegged currencies, such as the Euro or Yuan to target different markets."

 

release   2015/09/02   gbboy
タグ:NuBits , Nu