Our Dependence on btc-e is Both Unhealthy and Dangerous to Peercoin's Future

I posted this to Reddit as well. I hope you all take this seriously. I’ve been disappointed lately about the lack of support for Peershares projects from this community…

I saw this post by freudscat in the B&C thread and thought it deserved its own thread. This is a very important issue that I think a lot of people are completely ignoring…

"I am a long-term investor in Peercoin. My PPC are continuously at work securing the blockchain, and I don't plan on getting them anywhere near an exchange in the foreseeable future.

That being said, not a day goes by that I don’t worry about opening the news and finding out that BTC-e has been hacked, corrupted, or collapsed. What would become of all the brilliant work that has already been accomplished here if BTC-e goes under while we’re asleep tonight? Are we willing to stand by and watch our vision for the future die off into a forgotten footnote?

I hate to say it, but it’s naive to think that Peercoin could survive the loss of BTC-e. The Peercoin community I love needs to take action now and support our brethren in launching B&C. Regardless of your opinion of NuBits or Jordan Lee, the decision to bid on this auction should not be considered optional to holders of Peercoin.

The survival of Peercoin depends on the success of decentralized exchanges. We cannot afford to delay. Please ask your questions now or place your bid. In my opinion, doing nothing is forfeiture."

I agree 100% with this post. Just look what happened to Primecoin when btc-e got rid of it. It has descended into irrelevance and is currently sitting at #59 on Coinmarketcap. Continuing on our current path of dependence on btc-e is both unhealthy and dangerous for Peercoin’s future. Please do your reseach now. There is almost 1 day left to make sure the fundraising is successful…

Another thing I’ve been wanting to talk about, there seems to be some type of divide or disconnect between the Nu and Peercoin communities that I can’t understand. I’ve felt it for a while now. Nu was born from Peercoin and we share many of the same members, me, Ben Rossi, Master_of_Disaster, Chronos, Cybnate, Sigmike, CoinGame, mhps, Jordan Lee, etc… But at the same time, there seems to be so many people in the Peercoin community that have no clue what goes on at Nu. They just simply never followed along when it launched. I don’t understand this, because I believe our fates are intertwined and many people that are active in both communities recognize this as well.

The success of Nu will bring Peercoin up along with it, as it’s the dividend coin for Nu. There are people that seem to believe that Nu has distanced itself from Peercoin, since the proceeds of NuBits sold are now used to purchase NuShares and burn them, rather than using the proceeds to purchase Peercoins and distribute them as dividends to shareholders. This change was done because it’s more sustainable for the Nu system, not because Nu wanted to distance itself from Peercoin. Nu is a decentralized business, and like any business we can’t buy Peercoins and distribute dividends to people without first making a profit. Once NuShareholders figure out ways to make consistent profits for the network, I’m sure dividends will start back up again, but not before then. It would be unwise to do it any other way. It’s common business sense.

Also, there are people that believe NuBits are competition for Peercoin. Nu relies on pegs to real world currencies where Peercoin doesn’t. I believe they’re both complementary, but different. We shouldn’t be enemies. We should help each other out because we’re in this together. Another thing is that there are people when Nu launched that couldn’t get in touch with Jordan to purchase NuShares because Bitmessage was malfunctioning at the time. Many of these people gave up trying to communicate with Jordan and never got involved with Nu. Others had the chance to get involved, but didn’t because they believed the parking mechanism made NuBits unsustainable in the long-term. I believed this was true as well, but stuck with them because I believed the Peercoin community was smart enough to solve the issue in Nu and since September we’ve completely changed the design to a more sustainable model capable of reducing the supply of NuBits. All it took was time and patience.

To all these different types of people that never got involved in Nu for one reason or another, I understand that you may be uncomfortable about purchasing NuShares in order to receive shares in B&C when the exchange is finally done being built. You’re unfamiliar with Nu because you never got on board when it launched and the Nu forum is too huge and active to catch up now. Trust me I know. I got behind on the Nu forum soon after it launched and in January it took me 1.5 months to read the entire forum and catch up. It’s intimidating to think about.

Because of this, I spent much of last week creating an entire history of the Nu Network, featuring a timeline of all major events, descriptions of what happened, quotes and links to original threads so you can research it more for yourself if needed. I wasn’t ready to share it yet because there are still some things I’d like to add, but it’s mostly complete now. I did this because I wanted there to be a better synergy between the Nu and Peercoin communities instead of what we have now, people ignoring each other not having a clue what goes on in the other community. I believe we should work together. We would get so much more accomplished. I spent a lot of time creating this for you guys, so I really hope you at least check it out. It’s a much easier way to catch up and understand how Nu has evolved throughout its history than reading the entire forum. Maybe once you understand what has happened since the September launch, you’ll be more willing to be involved in both communities. Anyway, I hope this was helpful in some way. Here is the link with the history…

The Full History of Nu: https://discuss.nubits.com/t/history-of-the-nu-network-feedback-please/2088

I guess it’s just because Peercoin and NuBits are just two really different projects with no much in common besides the Peercoin PoS code base and a few people.

NuBits is a rather complex project with lot of actors involved, most people probably get lost while trying to understand how it works.

And I don’t know if a decentralized exchange will be enough to save Peercoin if it gets one day delisted from all “centralized” exchanges.

It seems the discussion in r/peercoin kinda went off-topic. There are people asking what future Peercoin will have, for example…

"What future could Peercoin possibly have? Where do you see it's place in the cryptocurrency world and why should anyone care about it? In a world where there are professional development teams trying to do bold things, what is Peercoin doing? It seems very outdated at this point."

Maybe some of you could respond?

I would say there’s a lot more than a few people involved in both. Also, you’re correct that the projects have different focuses, but the code in one could possibly be used in the other.

This is why I created the history for you guys. It can be complicated, because Nu’s design has changed over time. If you read the history, then you should hopefully be able to understand what has changed and why, and what the current state is. Here is a simplified version of the current state, but you can get a lot better understanding by reading the text I wrote…

[b]1.[/b] When NuBit demand is low, NuShares will be created and sold while NuBits will be purchased with the proceeds and burned. NuShare supply increases as NuBit supply decreases. This depresses the NuShare price as it supports the NuBit price to the pegged level.

2. When NuBit demand is high, NuBits will be created and sold while NuShares will be purchased with the proceeds and burned. NuBit supply increases as NuShare supply decreases. This inflates the NuShare price as it suppresses the NuBit price to the pegged level.

So there are two ways for shareholders to react when we’re in different parts of our economic cycle. Meanwhile one of our members (Creon) has developed a trustless liquidity pool. Basically, shareholders grant a server operator NuBits. People download and run a client that connects with their trading account. The client then places trades to buy and sell at $1. The client sends proof of these transactions to the server, which verifies the transactions took place. After verifying, the pool will automatically distribute a certain percentage of interest that the pool operator received in his NuBits grant. It’s important to note that this is a trustless system, so liquidity providers keep full control of their funds at all times. Nu needs people to provide their own funds for liquidity operations to help maintain the peg. They then get paid interest for doing this. I believe liquidity pools like this could become the next mining pools.

If you’d like to learn more about how it all works, please read the history I wrote. I think you’ll find it interesting…

It may not, but I believe it’s better than doing nothing about it as we currently are. If B&C works as intended and succeeds in its mission, it could become one of the most popular decentralized exchanges for crypto trading and Peercoin would have a prime spot along with Bitcoin. That’s exciting to me, especially since the life blood of exchanges is liquidity and Nu is in the business of providing liquidity. Also B&C would allow cheaper fees for Nu’s liquidity operations and possibly more liquidity providers due to the nature of B&C being safer from theft compared with centralized exchanges. Nu and B&C will go together like peanut butter and jelly and Peercoin will be a part of that. I don’t think any other decentralized exchange will be able to compete with this dynamic.

I fail to see why more people aren’t excited about this.

Thanks to the contribution of PPC Chinese core members, the media exposure has been well-organized on

  1. btc38.com
  2. diandianbi.org
  3. and subforum on 8btc.com :http://8btc.com/forum-49-1.html
  4. weibo updated regularly: http://weibo.com/u/3968227916
  5. Frequent marketing events are being organized.

Next step would be closer cooperation with Jubi.com, another China-based exchange.