Motion to approve the immediate and permanent liquidity transfer of 250,000 NBT from the custodial funds previously granted to Kiara Tamm (@KTm) to Jamie Miller (@jmiller).
Grant Transfer Address: B8Ux7BSCvm8TxR9TWekuGvGCNwy32zRYRD
Grant Transfer Amount: 250,000 NBT
REMINDER! This is a motion vote, not a grant proposal. Vote for the generated hash (posted in the announcement topic), not the address/amount pair listed above
Diversification of custodian-held funds is paramount to building a robust and responsive network of available liquidity. At the time that Grant B7mmVdVQ1SNNcT9zuQRK1B3Cbvo8vHeoB1 ("Grant KTM" - 1,800,000 NBT + fees) was approved by the Nu Shareholders, there was a lot of uncertainty around how the actual custodian exchange operations would be conducted and what the market's demand would be for NuBits immediately after launch. Therefore, a proposal for a single large grant was introduced to ensure enough liquidity was on hand and available.
In the last 100-plus days of Nu operations, we, the Custodians, have learned a lot about what works well, what didn't work and what could be done better. Originally we had been working under the assumption that we'd be able to deploy multiple bots (each a proxy for an individual custodian) on a single exchange trading pair. This assumption turned out to be wrong; the work required to develop the tools that NuBot needs to do this and the technical complexity of making a decentralized custodian coordination to work in concert has taken longer than expected.
This has meant that our operations, for instance, those under Jamie Miller's custodianship, have been limited in their ability to respond to individual exchange needs by the amount of NBT created under Grant B9fv9Di2Y4RxUHzrwjtfq5fetAhqULzWKL ("Grant JM" - 200,000 NBT + fees). Jamie's situation is the main example of this type of need, but as our network grows, distribution of risk and the ability for custodians to be able to quickly bring reserve liquidity to markets that need them - for instance, in the event of a major Nu exchange outage - correspondingly grows.
After discussing this with her, I propose a motion to permanently transfer a portion of Grant KTM in the amount of 250,000 NBT from reserve holdings[1] to an NBT address under the control of Jamie Miller (B8Ux7BSCvm8TxR9TWekuGvGCNwy32zRYRD). The deposit address will be used to transfer the funds and provide a way to easily trace the transaction in the Nu blockchain. Liquidity information to the Nu network will be reported using her existing grant address, B9fv9Di2Y4RxUHzrwjtfq5fetAhqULzWKL.
The implications of this transfer are that for accounting, reporting, and dividend purposes, Grant KTM's outstanding NBT liabilities will be reduced in value permanently from 1,800,000 NBT to 1,550,000 NBT.
A successful passage of this motion means that Jamie Miller will be granted full authority by the Nu Shareholders to deploy these transferred funds in accordance with the terms of her existing grant's operations. At the shareholders' approval, Kiara Tamm will no longer be involved in the management of the transfered funds.
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[1] "Reserve holdings" in this context mean funds that are stored off-exchange and are not reflected in the Nu client or returned with the 'getliquidityinfo' RPC command.
Topic: https://discuss.nubits.com/t/proposal-for-transfer-of-liquidity-from-existing-grant-reserves/1269
RIPEMD-160 hash (using the file, liquidityTransferProposal.md): 387e7f6ffc7d69311ac2e1d0ca7cd98d4ecbdea9