Why did you remove Nu from this chart as it is a 2.0 technology? Did you see the answer I posted in response to your thread on Reddit? I will include it again below. Nu is one of the most unique networks in crypto and its voting mechanisms would have prevented the mess we see in Bitcoin right now. Further, we believe that stable currencies are the future of crypto and Nu is one of the leaders in this new and innovative market. We have now kept a stable peg for almost a year and are constantly working to improve our service.
Whereas most crypto supporters believe mass adoption will eventually stabilize price, the creators and supporters of Nu believe they have it backwards, that price stability will encourage mass adoption.
Nu is comparable to a central bank, however it's the world's first decentralized bank. The network is split into 2 units, NuBits and NuShares. NuBits are pegged to the dollar. NuShares are free floating in price and represent equity in the network. NuShareholders control the supply and demand of NuBits through various decentralized voting mechanisms.
NuBot: We have a trading bot called NuBot which is designed to place buy and sell walls directly above and below $1. This bot keeps the peg as tight as possible.
Custodial Grants: If demand is rising and there are not enough NuBits already in circulation, shareholders will vote for a specific amount of NuBits to be created. Those NuBits will then be placed as a sell wall directly above $1 to prevent the price from rising too much.
Parking: If demand is in a slump, then shareholders can vote to increase parking interest rates. Doing so will encourage people to withdraw NuBits from exchanges to park them for a certain length of time in order to receive interest. This creates temporary synthetic demand to prevent the price from dropping below $1.
Variable Transaction Fees: With the release of v2.0, shareholders now have the ability to vote on the transaction fee. The fee acts as a natural way to destroy NuBits and permanently decrease the supply. Raising the fee rate will destroy NuBits at a faster pace, but could discourage transactions as well. It's up to shareholders to find an appropriate fee rate.
NuBits Burning: If parking interest rates have been raised for a while, but aren't having the intended effect, then this is an indicator to shareholders that the supply of NuBits needs to be permanently decreased. As a last line of defense for the peg, shareholders will vote to dilute themselves by creating more NuShares and selling them to raise funds. These funds will then be used to buy back NuBits and burn them to reduce the supply. When demand finally picks back up again, shareholders will do the opposite, vote to create more NuBits, sell them on the market and use the proceeds to buy back NuShares and burn them.
Liquidity Pools: Nu operates under a zero reserve model to eliminate counterparty risk. To accomplish this, we've created two types of liquidity pools. The first type requires a little bit of trust. Shareholders appoint a pool operator and provide them with a monthly grant of NuBits. Regular people deposit their own money with the pool operator. The operator then runs NuBot on an exchange to place buy and sell walls. The operator then provides depositors with interest from the NuBits grant as compensation for the risk of providing liquidity.
The second type uses software we built called the trustless liquidity pool. Once again someone is appointed to be a pool operator and they are provided with a monthly grant of NuBits. Rather than depositing funds with the pool operator though, people deposit money to the exchange they plan to provide liquidity for. They then install a client, which places buy and sell walls using their deposited funds. The client sends this trading data to a server under the control of the pool operator. This server verifies whether the liquidity is being provided and how much. After verifying, the server then distributes interest to everyone as compensation for providing liquidity. It's important to note that using this trustless method, liquidity providers maintain full control of their funds at all times.
Business Model: NuShareholders provide the service of a price stable crypto. This service costs shareholders as you can see from the monthly fees we pay out to provide for decentralized liquidity. The job of shareholders is to continuously increase demand and adoption for NuBits. As demand increases, new NuBits are created and sold. The proceeds are then either distributed to shareholders in the form of Peercoin or NuShares are bought back and burned. The transaction fee is also one way that users of the network pay for the service we provide them. The transaction fee slowly decreases the supply over time, which then allows us to create and sell more NuBits again for profit. In the future, NuShareholders will also decide to add more pegged currencies, such as the Euro or Yuan to target different markets.
If you would like an even more detailed account, I wrote an entire history for Nu, which takes new people through our entire evolution since we launched...
https://docs.nubits.com/history/Please tell me if there is anything else you need to know.
