Re: Ahead to Nu worlds! (liquidity provision for fun and profit, 9% monthly return)
by
inuit_wallet
on 18/06/2015, 13:33:15 UTC
Hi SebastianJu, thanks for your question and apologies for the delay in replying.
I understand you preference to posting here rather than on the Nubits forum but I feel the need to point out that even though it is monitored, questions and discussion are welcomed.
Your question is a valid one and is one that has been asked in various forms on the forum. I'll add some links of interest to the end of this post. The backing for NuBits is the value of the Nu network itself. In this early phase of Nu, this value comes mainly from the value of NuShares held. There are motions underway to create a feedback loop between NSR and NBT to allow for the transfer of value from one to the other. It is hoped that as Nu matures, the network will start turing a profit which can then, in turn, be used to back NuBits. The upcoming B&C decntralised exchange is a step towards this. There are other ideas being explored too. The danger to the $1 peg through the creation of too many NuBits is well known and understood. A coming update to the Nu platform will allow for custodial grants to be paid in NuShares instead of just NuBits. I fully expect liquidity pools such as NuPool to start paying out in NuShares once that ability is available.