Did I understand right ? If the aim is to stabilize the price of NAUT within the given algorithm and policy, what is going to be the correct value of this coin ?
One may can just go and buy the whole sell wall and increase the price easily... which indicates the increase in demand. So what does really mean by the stabilizing fund and stabilized value ? I know this coin is assumed to be in its
beta phase... but I was just wondering the concepts above mentioned... Cheers.
Ps: The only reason why I don't want to strictly get involved with NAUT is because it is called beta... It makes me think that Naut is not reliable (or say it is too risky
) as stated at the end of the white paper, in Disclaimer.
Neither the NSF nor the interest rates are going to prevent the coin find "its price". The NSF is way to small for that, it can only reduce volatility a bit. Changing interest rates at this stage have next to no effect for altcoins. We are used to pricejumps of 20%+ in minutes, thats why the (potential) benefit from having the coins at the exchanges is bigger than the gain from staking. That is a problem for any POS coin, the example I gave was the VRC theft.
Even though the effects of the instruments are rather small now, they are still important because their effect will grow with time if all goes as planed.
a) The NSF is big enough to have a stabilitzing effect on the price right now as is intended. Of course if cryptoworld is in full lemming-panic-mode the NSF isnt going to do much.
b) if Naut is ever going to go mainstream the interest rates will start to have a big effect.
most important
c) The instruments are driven by an economic intention. That is the big difference to most other altcoins which are "just" adding technical features, sometimes interesting ones, most of the time pretty useless other than to hype a coin. The instruments as described in the whitepaper are about the long-run. Now, realisticly, the chances for Naut failing are still pretty big, as is the case for all cryptos, which leads me straight to the disclaimer.
I have no idea why you have problems with that. There are legal reasons why the disclaimer exists. Besides those, this is the first coin I am aware of that explicitly warns of the risks involved with Naut and cryptos in general. 50 pages back I wrote that as soon as a coin tries to go mainstream - and this is the goal - you have to be honest enough to tell your average john doe that cryptos are probably not the best way to park your live savings or the money you plan to spend on your kids education. It is a highly risky asset, and this should be made clear to anyone who thinks of investing. If you want to avoid that risk, avoid cryptos.
The disclaimer could be assigned to any other coin with very few changes.
