Topic: [ANN] [NAUT] Nautiluscoin - First Coin w/Stabilization Fund - Digishield - page 295. (Read 901853 times)

This is a great possibility....if you know ALL the ins and outs from the coins, dev, fudsters etc... from the coins where you make the basket from. Otherwise this will become a desaster, in my opinion

You will need to know everything. In CC we don't know anything, what is the real name of the coin owner, a phonenumber, which country he comes from....just to start with.

Letting a coin proof itself to BK, make a list with requirements to become part of a basket......that will change the game

Sorry for the updates all the time...lol

As toxic as this idea might sound to many here, I am absolutely suggesting this.

Think about it this way.

You buy NAUT on an exchange. That's "bronze" level. It goes into your wallet. That's for us, traditional Bitcoin enthusiasts, people who spend a small amount of money experimenting with crypto because it's fun, and occasionally there's a payout to our speculation. Mostly we have Bitcoin. We like tech, new algos and strong personalities. We mostly don't have any economic experience.

But you could also offer a "silver" or "gold" level where you don't buy NAUT on an exchange, but via a card or document. Something to hold that anyone can understand. The user still keeps the private keys (this is vital) to the wallet, but additionally you may offer a "sliding scale" service where a viable % is also paid to purchase a basket of coins on behalf of invesotrs. The user doesn't get those coins in a wallet, only the NAUT, but they can convert those back into NAUT. This for risk adverse investors who want to put a large amount of money down and not worry about the details. People with economic experience who have many other assets to think about. Imagine how profitable it would have been to have this in Febuary, before Darkcoin and before Black! Then you can start tempting the "bronze" level in with merchant deals or bonuses...

The mistake with DIRAC was currency pairing, which is nothing but the same mistake as having a peg and actually a step backwards from your "reserve currency" idea. But NAUT's strength so far is that it is a coin that learns from its mistakes. Very quickly. You already bought some DIRAC, why not a "basket" fund for your investors, too? Why stop at one pair? Who says we even need exchanges?

I am trying to understand your idea: Are you suggesting NAUT become a 'hedge' fund of crypto coins?  If you buy NAUT you are buying a basket of coins?

The same thing goes with down swings, since it takes longer to discover new blocks you need to give it more room to go down, but not enough to send it to the floor.

You could sell NAUT to Wall Street as a way to invest in other cryptos indirectly. You buy on their behalf via NAUT, the NSF eats the risk, you pay out via NAUT on demand and any fees go back into the NSF.

All the talk about Wall Street in this thread is always one directional : NAUT as "wall street's coin", selling NAUT as asset class. But what about the problem you could solve for investors by having NAUT as an instrument that works the other way, allowing people to invest in the market without worrying about scammy coins and dishonest exchanges? There are a lot of people out there who have made substantial money on tipping and joke currencies like Doge, and NAUT is an ideal way for them to "grow up" and for Wall Street to exploit that resource, and encourage eagerness for serious investments. #getnauti could be #getserious for younger people who have had fun with Doge or BC, and now want something with a little more bite. Looking at all those juicy 250k market caps on CCM and Naut is primed to take a bite of them on behalf of investors...

It is possible that the NSF could morph into something else as the price stabilizes. One reason why I have not automated it yet is because I want to retain the ability to remain flexible - always keeping in mind the goal is to prevent massive price swings. That being said, the price volatility has been much larger than I expected - I did not anticipate the power of miners auto-selling (that is the price of being a newbie).  The flaw in my logic was that I assumed all holders of the coin would have the same objective, i.e. increased market cap - but clearly paying an electric bill in fiat was more important.

As the ecosystem grows the possibilities are endless - one potential is using the NSF as collateral for a derivatives contract.  If we leverage the NSF we could conceivably place a floor under the price - this floor may have to be significantly away form the market, but it would still establish more stability as the market cap grows.  Alternatively, if options are ever traded on NAUT we could sell calls against the fund to generate income and grow the NSF resources. Of course these are a long way off.

But the real stability/support will come when there is a reason people have to buy NAUT - that is to say a product or service they want is only priced in NAUT.  The oil market is a great example, every benchmark is priced in US Dollars.  I am working on a few projects that will push NAUT toward becoming a reserve currency for the crypto world.


-BK

Great points, although I think the price actually went up about 60% at its peak That's especially amazing considering that some people probably sold, as some people always panic during network problems. This really shows how insanely oversold NAUT is!

BK, it's really inspirational to read your posts on the subject. I've never seen a coin where the creator has so many long-term plans, as you have with NAUT. Most coins that are not total scams uses one technical innovation as its selling point, but once that has been copied their left dead in the water. I think you're bringing something unique to this market with your knowledge of business and finances. I think the market has been dying for something like this, as people are growing tired of the never ending pumps and dumps.

Now, while we're on the subject of the NSF I wanted to ask you - do you think the need for the NSF will disappear as the market cap grows, or will there always be a room for it? The reason why I'm asking is because the larger a coins cap is, the less volatile it is. This is not surprising as more and more money is required to move it, but I wanted to hear your thoughts on if you can see a point where you would dismantle the NSF altogether? If not, do you think the best bet is to automate is as use of NAUT grows to keep it as neutral as possible?

Completely agree that an old fashioned "peg" will never work. If this coin grows to a realistic fraction of Bitcoin's market, your activity would be like throwing a penny into the ocean for all the effect that it would have. But there does need to be a unique link between the real world and the NSF's activities in order for the NSF to be realistic as a "stability fund" and not just you personally buying and selling at an exchange.

I will say that because NAUT has become so badly over-sold for such a long period, you will have managed to have the fairest launch of any coin yet once you switch to POS, having accidentally emulated Bitcoin's months of being mere "monopoly money" that holders toyed and played with, and spread around. I'm hoping the POW supply caps out at 5million, because a bigger supply could cause problems to the nice, steady valuation and growth period we're experiencing now. It only took a few hours of POW supply stopping for a 33 percent price explosion. Wow. We should think about when that turns into months.

When I originally conceived the NSF I thought about some kind of peg...but the problem with all currency pegs is that once the market senses the central bank is under-capitalized it attacks.  That is how George Soros made $1b overnight in the British Pound.  With the relatively small market cap a peg would be credible as it would only take a few hundred thousand to buy the whole float. However, as we grow a peg would increasingly lose its credibility.

I may go to a currency band system at some point, where we place additional speed bumps as you suggested. As the market cap grows it will be more difficult for the NSF to influence price, but an increased market cap would also suggest merchant acceptance which should add stability.  As well, PoS will reduce the miners influence on price.

I really like the idea of tying NAUT to the 'real' world as it would make people comfortable holding the currency - I plan to continuously search for a solution.

You could simulate this by reducing/increasing the NSF activity based upon the difference between the annual stake growth and a known index, making a small yet non-trivial % change to the fund's activity based on your chosen index. That way you could still say that Naut provides a dividend based on the known index, but in the value of the coin not the amount of the coin held by individuals. This would also add a second "speed bump" effect to the rate of supply as well as the rate of growth, as the coin supply would be nudged by actual demand. Maybe this could solve the issue of whether or not people have can have an "at a glance" assesment of the NSF's activities, replacing a block of by-sell figures to a single % digit that could be publicized on your site and updated as your pegged index changes. Holders could see on your site that the index change of the day would +0.5% sell and -0.7% buy, for example. NSF would therefore be not only price agnostic, but arbitrated through something real.

Obviously not the same as promising a personal dividend payment based on a known index, but still a potential bond between NAUT and the real world. Something which no other coin could possibly have unless they employ their own fund manager.

Awesome! Thank you BK! :-)

Great News!!!

Thanks for the Update BK !!

We have begun the coding work on PoS, it is estimated it will take about a week to complete and then we will need to test.  The one thing I have learned about crypto is to expect the unexpected! I don't want to over promise and under-deliver so I will only post about what is completed and tested. As we move further in the process I will be able to get a realistic date of implementation. My desire has always been for PoS to be implemented well before the PoW stage is done.

In terms of stake (or 'dividend' for guys like me) I have set it at 2%. I had hoped to tie the stake to a well known price index, but relying on a third party would compromise network security. I chose 2% because most central banks target 2% inflation per year - Wall Street will understand this.  I am also consulting with a few well respected economists to determine if there is such a thing as 'optimal money supply growth' - so far we have not found it - if we can determine an optimal method then we will try to incorporate with PoS...BUT no promises as this is much more art than science.

-BK

Personally I hope we'll move at around 5 million coins, which at the current POW rate would be about a month :-) That would limit the supply to give the NSF more room to operate, while at the same time give the devs enough time to implement POS properly. This is not one of those things you want to rush, since the entire network depends on it.

I have been wondering about this as well and the yearly %

BK, if we move over to POS soon will the coins be capped at a lower amount? Like 4-5 million, instead of the original 16 million. I mean, the number will still hit that eventually with POS inflation, but I mean capped during the POW phase.

FlyingMongoose, I am a man of my word, just sent you a tip for all the good work and articles you are doing for NAUT, get yourself a T-Shirt as well  I am just about to order mine 

couldn't say

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