Re: BTSX+BitUSD vs NuShares+NuBits - which will win the USD peg war?
Far too early to tell, but I think we can all agree it is good to see two serious competitors in the market! This will make both of them try to constantly improve.
The NuBits whitepaper can be found here https://nubits.com/about/white-paper
The basic idea is that:
The price of NuBits is pressed downward by shareholder elected 'custodians' selling NuBits for $1.
The price of NuBits is pressed upward by anyone who owns NuBits being able to take their NuBits out of circulation (called parking) for a limited time in exchange for a monetary incentive, the incentive amount chosen by shareholders which will reflect how needed parking is at the current time.
Hope this helps.
Interesting. What role does peercoin (undercapitalized) play for the mechanics of Nubits?The NuBits whitepaper can be found here https://nubits.com/about/white-paper
The basic idea is that:
The price of NuBits is pressed downward by shareholder elected 'custodians' selling NuBits for $1.
The price of NuBits is pressed upward by anyone who owns NuBits being able to take their NuBits out of circulation (called parking) for a limited time in exchange for a monetary incentive, the incentive amount chosen by shareholders which will reflect how needed parking is at the current time.
Hope this helps.
One Nubits should always be one USD? I clearly have to read the paper
NuBits created and sold are an example of a revenue for the network. The revenue is paid to shareholders in the form of Peercoins only.
So how many custodians and who chooses who they are ? Is it a centralized selection process ?
As many as the shareholders elect, and they can be abandoned at the will of the shareholders. Custodians have no control over the network.