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2015/01/30    Data feed in NuBits

“Anyone who follows motions, grants and liquidity closely should host a data feed.

It allows you to have more influence over the network than your NuShare position would otherwise permit.

On the other hand, if you are a shareholder that doesn’t follow all the latest info on this forum several times a week or more, please consider delegating your vote to someone hosting a data feed who is paying close attention and represents your viewpoint reasonably well. You can subscribe or unsubscribe to a data feed at any time.

Data feeds let users configure their Nu client to pull voting data from the internet. All that is needed is a URL to the voting data.

Your previous votes in the client are replaced when you set a data feed. If votes are manually added after you set the feed they will be removed on the next pull. You optionally can choose to ignore individual parts of a voting feed (motions, custodians, or park rates). If you choose to ignore custodian votes from the feed, for example, you may manually edit custodian votes in the client without the data feed overwriting them. All parts are selected by default. ”

Source: discuss.nubits.com & docs.nubits.com

 

 

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2015/01/26    How NuBits provides the missing link for Cryptos

“Offering the liquidity is the missing link in cryptos.
You are rewarded not for securing the blockchain but for securing the peg since the security of the blockchain is basically secured by voting from the shareholders and this is basically risk free.
Securing the peg is not riskless and therefore costs as mining costs energy.”

Source: cryptog

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2015/01/24    How NuBits are backed?

“The Nu network made a split between asset and currency.

NuShares (NSR) are the asset which have a fixed amount and a variable price level. They are the shares of that corporation.

NuBits (NBT) are the currency which have a fixed price level (1NBT=$1) and a variable amount.

In short the peg works like this:
custodians are elected by the NSR holders. The place buy and sell walls at exchanges to maintain the peg. Those walls are maintained by an open source programm called “NuBot” (which works so great it was copied by BitShares market makers).
If more money is needed due to rising demand, new NBT can be issued by the NSR holders.
Remark: NSR holders vote on custodians and other things in an ongoing voting process, but allow me to not go into further detail here.
If there are too many NBT in circulation, there are several approaches to reduce the supply. One of them is paying a park rate interest to remove NBT temporarily from the market, but the more important approach is to burn NBT and create NSR by doing that.
This inflates the amount of NSR and dilutes their value, but as the value of the whole Nu network highly depends on the stability of the peg it can be expected from the NSR holders to rather take a partial loss by diluting the NSR than a complete loss by a failing Nu network.

So NBT are ultimately backed by NSR.

If you see someone selling 1 NBT for less than 1 USD (only possible at exchanges which have no active custodian NuBots), I can only recommend to buy all you can get and sell it to a custodian sell wall at an exchange that has a NuBot running.
The latest example of that happening can be followed here: https://discuss.nubits.com/t/introducing-bitcoin-co-id-nubits-bitcoin-with-0-trading-fee/1140/28

Source: http://www.reddit.com/r/Bitcoin/comments/2t9day/bill_gates_just_said_on_jimmy_fallon_the_future/cnxnere

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2015/01/16    NuBits: Where Do Dividends & Network Revenue Come From?

1) How exactly is this system producing revenue?

“Shareholders elect dividend custodians and create new NBT for them, which are created by the network after a vote. The custodians sell the NBT on the open market. With the proceeds, they distribute dividends to shareholders. If demand for NBT rises, this can create a lot of dividends. If demand falls, custodians may end up selling the NBT very slowly, or not at all, in order to help maintain the peg.”

2) Why is it going to shareholders?

“Shareholders receive dividends as a reward for buying NuShares. Think of it like buying stock in a company that pays dividends.

It goes to all shareholders, equally distributed. Shares that have not yet been sold from the premine will also receive dividends, and Jordan has pledged that those proceeds will be used to fund core development.”

3) What’s the role of Peercoin?

“NuBits will create a demand for peercoins, in order to pay dividends. If all shareholders immediately sell the peercoins they receive, the net effect will be zero. However, if shareholders keep some dividends, the extra demand could increase the price of peercoins.”

Example of an issuing of Nubits:

“The shareholders elect a custodian and create 100,000 NBT for them ( in what is called an ‘expansion block’).
Demand is healthy and the custodian is able to sell them to people who want to use NBT. The custodian turns around and uses the profits to buy Peercoins, then pays them out to the shareholders. As the whitepaper mentions, a custodian is likely to be a shareholder himself, so his intentions align with the other shareholders. The revenue goes to the shareholders as that’s kind of the point of the system. There is revenue to be made in the network, and you are buying shares in that potential revenue.”

 

Source:  https://discuss.nubits.com/t/where-do-dividends-network-revenue-come-from/182/2

 

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2015/01/06    What is the Peercoin? (in light of NuBits)

“  Peercoin = crypto currency. NuBits = crypto bond with a peg”

“I don’t have confidence in the decentralization or sustainability of proof-of-work assets such as Bitcoin, so I needed a well distributed proof of stake asset external to the Nu network. Peercoin is a popular and stable proof of stake asset with a strong community backing it.”

“Like it was wise to separate the bank (NuShares) from the issued currency (NuBits), it is wise to separate the dividends from both the bank and the currency. Say you have decent amounts of dividends you need to pay. It would be quite simple to pay them with NuBits, because you can create the NuBits ou of thin air. NuBits is young and needs to prove itself being capable of what it was designed for. If believe it does that. But it’s safer to pay dividends with something that already has proven itself. Peercoin is the perfect choice. There’s no drawback for the Nu ecosystem to use Peercoin for dividends, but a benefit. Peercoin is independant from Nu. Peercoin has its own highly sustainable block chain. These benefits remain even if NuBits proves itself.”

“Why are Peercoins needed for the dividend payment? I could argue with “historical” or technical reasons; where Nu comes from, how the NuShares are based on the Peershares template, how the Peershares template is based on the Peercoin source code.

But the reason I see is more an economical one. Like it was wise to separate the bank (NuShares) from the issued currency (NuBits), it is wise to separate the dividends from both the bank and the currency. Say you have decent amounts of dividends you need to pay. It would be quite simple to pay them with NuBits, because you can create the NuBits ou of thin air. NuBits is young and needs to prove itself being capable of what it was designed for. If believe it does that. But it’s safer to pay dividends with something that already has proven itself. Peercoin is the perfect choice. There’s no drawback for the Nu ecosystem to use Peercoin for dividends, but a benefit. Peercoin is independant from Nu. Peercoin has its own highly sustainable block chain. These benefits remain even if NuBits proves itself.

NuBits and NuShares give Peercoin a very important real-world use. The dividends treat Peercoin as the backbone currency it was designed for.”

“What is particularly interesting with Peercoin is the fact it “informatizes” the mining aspect of bitcoin or “softwarizes” it so to speak, so that its security becomes “code” instead of “heat” to put things simple.

Now, it is easy to build things on top of it since it would amount to “traditional” software engineering.
Still, the financial part will remain.
I bet that the value of peercoin would be derived from the usefulness of the tools created on top of it or the services using it.
We can see it already with Nu.
Nu uses peercoin as a dividend transfer instrument.
If dividends increase, the demand for peercoin will increase, increasing its price.
Here peercoin is used as a way to quantify a reward.

So peercoin is software and at the same time a commodity used to quantify a reward produced or by extension a value output within an ecosystem using it.
What is the difference with bitcoin?
Well as bitcoin’s security is very expensive to maintain, it is not worth building things on top of it or building services using it because it is not sustainable. Therefore no sustainable ecosystems centered around bitcoin can exist.
So the value derived from it is thin. Therefore the demand for bitcoin in order to quantify that value is thin.

So peercoin or bitcoin are tokens used to quantify the value produced by the ecosystems using them.”

“At ethereum we generally don’t see blockchains as being financial tools exclusively; they’re more like decentralized computers that people run services on.”

 

Source: peercointalk, discuss.nubits.com, peercointalk chat box, ethereum forum

 

 

 

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