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Following are the details of the upcoming NuShare auction that has been discussed. The consistently stated plan has been that 1 billion NuShares would be distributed, until this was recently modified by shareholder motion such that shareholders could decide on an ongoing basis using NSR custodial grants. This auction readily fits within the original limit for initial distribution, as the present number of distributed NuShares is a little over 700 million.
If the motion is passed before the end of 6 March UTC, the auction bid deadline will remain end of 6 March UTC. If it passes after 6 March UTC, the bid deadline will be the moment it passes. If it does not pass, there will be no NuShares sold in connection with the auction.
- 100 million NSR total will be auctioned.
- Bid deadline is the end of 6 March UTC.
- Maximum bid size is 30 million NSR. Minimum bid amount is 2000 NuBits.
- Multiple bids not accepted.
- Bidders will not see other bids.
- Best to bid early because if NSR sales are needed to support liquidity, sufficient NSR will be sold to the highest bidders at that time.
- Bidders must be business partners, which means you are or will be active in creating value for the network outside the scope of being a shareholder.
- A valid bid will contain three elements: a quantity of NuShares, a price you pledge to pay per NuShare in NuBits, and the asset type you will pay with (PPC, BTC or NBT).
- The price of BTC will be set at the auction bid deadline using the Bitfinex BTC/USD market price. PPC, being less liquid and subject to price manipulation, will be priced as the average of the BTC-e PPC/USD price 48 hours before the auction bid deadline, 24 hours before the deadline and at the deadline. Payments in BTC or PPC will incur an additional 2% fee above the bid amount.
- You may place a bid by sending a Bitmessage to BM-2cTihATJ5FwJ7vWBwZmJjr55eFPFWBCmCQ or an email to nsrauction@vistomail.com.
- Settlement will occur in the days following the bid deadline of the end of 6 March UTC.
- The highest bid, the lowest accepted bid and the total funds received will be publicly released when settlement is complete.
- The first priority for funds raised will be to ensure the buy side liquidity is equal to the sell side liquidity as displayed in the Nu client. PPC and BTC will be used to purchase NuBits to accomplish this if necessary.
- The second priority for funds raised will be to provide tier 4 liquidity. Suitable persons to hold these funds using multi sig addresses will be sought out. Hedging will not be employed due to counterparty risk. Tier 4 liquidity must be highly liquid, and BTC is the only instrument that meets this need at this time, although I hope that liquid NSR markets will permit NSR to be used as tier 4 liquidity eventually. The quantity of NSR for sale is as low as it is to limit the effect of BTC volatility.
- The third priority for funds raised will be the payment of contractors engaged in development. NuBits are generally used for this purpose, and in that case all that is needed is to ensure there is good buy side liquidity on the open market.
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