Hello Tonbi,
I'm sorry but I feel my questions were not answered, I'll try to be more clear with less questions:
1. How many NVOS will be generated? Is it a fixed number per NVOT? If not, on what their number depends?
2. What does it mean to say that NVOS=0.99USD? Where and how will NVOS be converted to dollars?
thx
Hello, and thank you for your interest :
1- The amount of NVOS will be proportional to the amount of fees collected by the Validator.
2- It won't be converted to dollars, NVOS will be exchangeable for Bitcoins, the 0.99$ will be the equivalent value of NVOS in usd.
The NVOS supply will be managed in order to stabilize the price. The buyer will be the NVO Team (in early stages), later it will be automated, it would be possible to use a smart contract in this case as counterparty is working on that.
Thx for the reply Tonbi and Nemgun.
Ok, let's see if I get it, working example:
suppose I hold 20% of all NVOTs. Suppose t is the interval of time between NVOS distribution.
Scenario: During t, 10 BTC are collected as fees and 10 ETH are collected as fees, so 20% of 50 % of that is to be distributed to me, that is, 1 BCT plus 1 ETH - NVO company holds 50% of all fees. So far, so good. Now, based on which market will you give me the amount of NVOS corresponding to that 1 BCT and to that 1 ETH in dollars??
I understood that when you come up with the price of all fees of all cryptocurrencies
in dollars, you will use the formula NVOS=0.99USD to generate the adequate amount of NVOS, that's very clear. What I'm struggling with is how this calculation will be done.
Isn't it easier in each scenario to distribute the
cryptocurrencies themselves? Specially if your schemata is seen by regulatory agencies in different countries as an online exchange and with the risk of the entire thing being shut down? You are distributing dividends with price tag in fiat.
I don't know about the tech challenges to do this, though.
Let me first explain why 0.99$. In USA, 1$ is valuable, but lower then 1$ isn't valuable, this is why NVOS will be used, NVO doesn't want to get regulated by the governments because it is a decentralized exchange, regulating NVO means centralizing it. So as 1$ is a reference in USA, the Team decided to lower the price of NVOS by 1 cent in order to avoid legal issues regarding the distribution of funds, this process lets the NVO Wallet usable worldwide without limitations like Bitcoin.
The NVOT and NVOS will be counterparty assets, built on top of the Bitcoin blockchain, so the NVOS will be exchanged for Bitcoin only. While NVOT can be exchanged like any other asset/currency.
Once you put your NVOT in the NVO wallet, the validator will be aware that own X amount of NVOT, and will then send you a proportional amount of NVOS. Each time a trade is concluded, the validator will calculate the fees values in bitcoin.
Then he will process the distribution of NVOS, 50% will be sent to NVO and 50% will be distributed to the owners of NVOT.
NVO will issue buy orders once a week to buy back the NVOS at a fixed value of 0.99$ in
BTC. This process will be automated later.
How the Validator will send the NVOS to NVOT holders ?
The validator will convert the collected fees from Altcoin/Asset to Bitcoin. Then he will exchange the Bitcoins to USDT in order to fix the value. Finally will send NVOS proportionally to the amount of fees collected, and will distribute them proportionally to the amount of NVOT held by the wallets.
After a week, NVO will buy back the distributed NVOS to feed the Validator for the next week and so on, this process will be automated in late development stages.
This will incentivise holders/investors/owners of NVOT by keeping their tokens into the wallet, thus reducing the risk of dumps.