Updates

2015年09月

Nu is a Decentralized Reserve Bank backing up the value of its Currency in a Decentralized and Distributed Way.

Nu has taken the model of a corp. or org. financed by shareholders , producing a service, that service being ensuring a peg for its token 1NBT = 1USD by providing buy and sell liquidity on NBT/USD/crypto markets.

When demand is decreasing, shareholders decide to invest more money (diluting their share) in their venture to burn NBT.
When demand is increasing, shareholders vote for more NBT issuing and receive dividends (direct = dividend from LPC activity or indirect = share buy back)

But NBT value needs to be backed, constantly and here at Nu, it is backed by a collateral, but not externally, internally, by Nushares value.

"In the beginning Nu's capabilities have been somewhat limited, but the NSR developers, holders and the Nu community evolved the Nu network formidably.
With 2.0 and NSR grants one can truly say that the NBT value is effectively backed by the value of NSR.

If NBT get sold from the Nu network to the market, share buy backs or dividends incorporate or distribute, respectively, the value of the sold NBT to those with a financial stake in the Nu network: the NSR holders.

A share buy back is expected to increase the price per share leading to a higher market value. The difference between the increased market value and the market value before should ideally be close to the value of the NBT that was meant to be incorporated into Nu.

With distributing dividends the value is leaving the Nu network if you look at it on a blockchain level, but economically it's still in the Nu network: in the pockets of NSR holders.

Share buy backs intend to increase the value of NSR, distributing dividends might increase the value pf NSR as well, but in the first place aim to distribute the value equivalent of the sold NBT to NSR holders.

If NBT need to be bought back by Nu, because NBT demand on the market is very low, NSR will be issued and sold.
This will have an effect on the NSR price, it will be pushed down.
But NSR holders have been rewarded for that way earlier with share buy backs or with dividends.
They are incentivized to agree with issuing NSR and selling them, because if they don't, they risk the peg and endanger all their stake in the Nu network."

"The peg is guaranteed by the Nu network. As long as the market value of the Nu network is sufficient, the peg is safe.
There's a layered liquidity model and one layer deals with selling NSR (NuShares, the shares of the "Nu network" corporation) to buy back NBT and burn them. Payouts from liquidity pools are just one of the expenses of Nu. "

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blog   2015/09/26   gbboy

Nu and B&C: Synergy between 2 Independent DAC

"The combined value of Nu and B&C Exchange is greater than a single blockchain embodying both functions. This is due to better scalability, independent release paths, greater simplicity and branding advantages."

1) Powerful synergies and mutual interests:

"There will be a powerful synergy between the Nu network and B&C Exchange, with Nu bringing liquidity to B&C and B&C lowering costs for Nu."

"B&C Exchange will be a powerful tool for significantly lowering NuBit liquidity costs because the risk of exchange default and theft will be much lower than it is with centralized exchanges.

NuShare holders will have a powerful interest in providing a great deal of NuBit liquidity on B&C because of its low cost and the broad overlap in ownership between the two networks. "

 

Nu will be supplying the liquidity on B&C so trades can happen sooner rather than later.
Without a stable cryptocurrency that is liquid, traders have nothing to hedge volatility. For an exchange to be a success, it needs liquidity.
BCE has a vital interest to support NBT trading pairs. If that requires free/cheap access to the blockchain for Nu to allow NBT liquidity providing it's a small enough price to pay for BCE.

 
 2)  There are at least two ways B&C Exchange will benefit NuShare holders.

"First, NuBits will be used as the denominator on many if not most trading pairs. The exchange will feature a BTC/NBT pair, LTC/NBT pair, PPC/NBT pair, etc. This is expected to increase the number of NuBits held, which is likely to result in dividends to NuShare holders, NuShare buy backs and burns, or both.

The second way B&C Exchange will benefit NuShare holders is by offering a NSR/NBT trading pair that will increase NuShare liquidity, which makes it a more attractive investment."

 

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blog   2015/09/04   gbboy

Venture Capital with the Peershares template

We have the tools necessary to build an entire crypto-ecosystem on top of the Peershares platform in a similar fashion to other crypto 2.0 platforms.

We are envisioning each DAC with its own customized Peershares implementation.

Nu is particular because it will act as the central bank of the economy, albeit it goes without saying now decentralized and distributed and flattened out.

What is next? Hopefully an ever increasing supply of DAOs, each offering its own novel business model.

Also, sometimes funding can actually come from a pre-existing DAO. (BCEX was partially funded with Nu)

We are discovering a new type of venture capitalist here: the DAO.

 

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blog   2015/09/03   gbboy

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."

 

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

Why does Nu have the right approach to distributed reserve banking?

Nu has the right approach - namely: the currency price is that of the market(s) and stability is reached when demand and supply sides are balanced, elastically so that the price is constantly maintained to its stable value.

Now, how do we elastically, dynamically control the buy/sell sides on market?
By having intelligent shareholders that monitor in real time the network, that have an incentive that the peg is not broken.
How is that possible? every nushareholder is smart, has a direct voting influence, and the more nubits spread, the more there are nuclear shareholders that monitor Nu in real time and providing new motions, making it more robust.

Whereas the FED will sell its currency to banks that will resell them to end users into loans,
(in a pyramid structure) Nu will ask reputable liquidity custodians (local banks?) to resell NBT for a fee so that the peg is maintained.

Nu is a currency supplying reserve bank that is co-owned, and flattened out - that is distributed among as many shareholders as possible and pyramid-scheme-proof.
It appears that the satoshi blockchain thought form is perfect for that task - to distribute shares and make decisions based on a consensus among an indefinite number of people scattered on the web that do not need to know each other.

Nusharesholders cast vote because they have an absolute direct business incentive (they have nobody above, nobody below to oversee or check out, no intermediary to pass the money onto) to do so - so that the peg is maintained

The bottom line: "to have a stable price, you must be able to expand or contract either the supply or demand for the currency. Thanks to the peershares template, shareholders can expand the supply by voting to create it in the hands of particular entities and also support the price by increasing demand for the currency by paying interest on NuBits when necessary."

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blog   2015/09/02   gbboy

Why we funded B&C Exchange

Blocks & Chains Decentralized Exchange is the first Decentralized & Distributed Exchange native to the Satoshi-based Blockchain, without the use of proxy assets.

"Unlike centralized exchange websites, exchange operators will have zero access to funds and zero responsibility for customer account information.

If an exchange website disappears suddenly, a user can simply go to another site that uses the same open source exchange software, or use another application that supports B&C Exchange and continue using
the same account without interruption.

There are no privileged nodes, although certain BlockShare (BKS) addresses will be assigned a reputation score by minters, and those with the best reputation will be chosen as deposit address signers.

A highly responsive reputation system combined with security deposits and a tolerance of up to 7 rogue reputed signers in the case the network is configured to use 8 of 15 multisig addresses means the chance of exchange default is exceedingly low."

B&C is a service that caters to all blockchains.

"In order to sign for foreign blockchain deposit addresses, a client must be connected to the foreign blockchain. One signer may choose to sign for Bitcoin deposit addresses, which means his client must be able to connect to a Bitcoin client. Another signer may choose to only sign Litecoin deposit addresses, which means his client must be able to connect to a Litecoin client.
People who just want to use exchange services don't need to have their B&C Exchange client connect to any foreign blockchain, such as Bitcoin or Litecoin.

A particular individual might choose to be a reputed signer for the Nu blockchain. To do so effectively, he will need to make sure his B&C Exchange client is always running and always able to connect to his Nu client. He will need to convince shareholders to upvote his reputed BlockShare signing address. This reputed address will be used to sign reputed signer deposit public key lists, or deposit key lists to be brief."

Also remarkable is the ability to resverse transactions and to act as escrow, in an extreme secure way.

"The B&C Exchange architecture is well suited to provide reversible or escrowed transactions on any supported blockchain. It can do this without any protocol changes on the blockchain in
question. Non-reversibility of transactions is desirable in some contexts, but has been identified as a serious flaw of Bitcoin and other cryptoassets in other contexts. A reversible payment could be made to a multisig deposit addresses.
"

 

"B&C Exchange will become the first decentralized stocks market place in the world.
Imagine the revolution.
On B&C Exchange, not only btc and other crypto-currencies will be traded but also any crypto-asset that is "Satoshi-based."
Crypto-shares that are based on peershares blueprint, included.
Not only can we imagine that nushares will be traded on b&c, but also its own shares, b&c shares, and any shares that belong to any DAOs.
The consequence of that is that b&c could spark a revolution in the IPO funding of any business.
A business that needs to raise funds will create its own peershares blockchain and then go IPO from day one and float its shares on b&c.
Also, as Jordan Lee envisions it, it seems natural that NuBits will be used to get in and out of the market...as a synthetic dollar as one uses the USD to buy google stocks and sell them back for dollars" -cryptog

 

 

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release   2015/09/02   gbboy

Inflation adjusted NuBits

Just pegging NBT to the USD is not good enough for people who are worried about the Dollar inflation.
The good news is that Nubits can be more stable than USD, by adjusting its value in real time vs inflation.

But this is not a priority right now and will be implemented in second step.

This is how we would implement an inflation adjusted currency:

"Someone would advance a motion proposing the character and code we will use to define the currency, as well as its marketing name. They will also propose the use of a particular source and methodology for measuring inflation/deflation.
If passed, the dev team would need to make some minor changes to the code to include the currency.
Supply would be introduced the same way as NuBits, and on a monthly basis custodians would adjust the peg by configuring NuBot with the adjustment indicated by the economic data source chosen by shareholders in the original motion. This could be a downward adjustment in the unusual case of deflation."

"We anticipate that shareholders will begin using a data feed of their choice to configure their vote rather than manually configuring it as they do today. This will be particularly important with multiple currencies because each currency will require a different management of currency supply to match the demand of the currency in question. Because the management of multiple currencies through manual shareholder configuration of voting is impractical, I strongly support waiting to create additional currencies until there is a diversity of stable data feeds offering voting guidance to shareholders."

Reminder:

"NuBits is intended to the the first implementation of a currency deployed on the Nu block chain. The white paper discusses the idea of an inflation adaptive currency that could also be developed. There's a discussion that has been going on over at the Nu forums that starts to dig into what it could mean and the economic theories that support its creation:"

http://discuss.nubits.com/t/pegging-the-buying-power-of-1-2014-not-1-itself/148

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blog   2015/09/02   gbboy

NuBits can solve 2 problems at the same time

This is possible because NBT price is controlled in real time by Liquidity Provider Custodians.

Problem 1: cryptocurrency volatility, short-term fluctuation, the reason why cryptos cannot called money
Problem 2: FIAT inflation, long-term fluctuation, the reason why FIAT is called "bad money".

"In the first step, we'll manage to eliminate the crypto volatility and in the second step (perhaps one year later), we will resolve the FIAT bad money issue."
 

 

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blog   2015/09/02   gbboy