NuShares (NSR) are the shares of the Nu system, which are mined through the PoS mechanism to maintain the network of the Nu system. Through the vote of NuShares shareholders, the issuance of Nubits, the custodian, the interest of the Nubits system and other motions are determined. The voting of NuShares is realized through mining, and each person who mines a block writes his voting information into this block. The profits of the Nu system will be distributed to NuShares holders within the Nu system in the form of PPC.

Project Highlights

Within the Nu ecosystem, NuShares holders manage the supply of the currency NuBits, independent of any mechanism outside the blockchain. If a majority of shareholders vote in favor, new NuBits can be created and held by a voted Custodian. There can be multiple custodians, and shareholders can decide to change them. Custodians can decide whether they want to be anonymous. Because custodians are anonymous, there are many, and they can be removed by shareholders at will. Third-party organizations cannot control the Nu network by threatening custodians. The custodian also cannot control the network, he only has control over part of the system's income. The creation and sale of NuBits is the income of the entire ecosystem, and the custodian can use this part of the income to maintain the Nu system and distribute dividends. Dividends can only be paid out in Peercoins, which means that custodians must purchase Peercoins before they are ready to distribute dividends. Therefore, the demand for Peercoins will grow in proportion to the number of dividends issued by the Nu system.
Conversely, the Nu system can also reduce the supply of currency NuBits through another mechanism. This mechanism is called parking. Holders can keep their NuBits out of the circulation market for a period of time to obtain interest rates . This is somewhat similar to borrowing money at a certain interest rate. NuShares holders can dynamically adjust the interest rate according to the yield curve they think is appropriate by voting during mining. Once the demand for currency NuBits in the market decreases, NuShares holders can increase the deposit rate to reduce the circulation of NuBits in the market. Certain entities that are not interested in NuBits currency may buy them simply for interest, so the demand for NuBits will not decrease. When the market demand for NuBits increases again, the deposit rate can be lowered to bring the demand back to the previous peak until the interest rate drops to zero.
Custodians maintain a huge sell wall to keep the price of NuBits at $1, and when the market signals lower demand for NuBits, shareholders provide interest on deposited NuBits to generate demand in order to support the $1 price of NuBits. In the early stages of the operation of the Nu system, the instantaneous demand for NuBits may suddenly drop causing the price to fall below one dollar for a short time, and the shareholders will raise the interest rate to quickly bring the price back to the custodian's buying wall. This penalizes those who sell under a dollar and gives profits to those who buy under a dollar. Everyone quickly realized that buying below one dollar will always lose money, and buying below one dollar will always make money, which will prevent the price from falling. There is a special kind of custodian that provides depth of liquidity to those who are selling at a dollar, preventing price drops due to a sudden drop in demand before interest rates can be raised.

Vote

NuShares holders are entitled to vote when a PoS block is mined, and Nu's client and user interface allow holders to manually configure their votes. Since voting data may change rapidly, shareholders can pre-set an automatic data source (which is voted by shareholders in advance). There will be multiple entities providing data sources in the market, providing diversity and free competition. When they mine a block, their vote (manually or from a data source) will be placed in the interest coin transaction on the blockchain. Each of the three votes shall be manually or automatically configured by the user. For example a user could select an automatic data source for interest rate voting, but manually configure it when voting. Voting will be weighted and averaged based on the age of shares consumed during mining (coin age in Peercoin). To pass motions and custodian votes, 5001 out of 10000 consecutive blocks must be obtained. Interest rates and custodian mandates are detailed below.
Shareholders can vote in three types:
1. Hand over NuBits to a certain custodian: Shareholders only need to set the currency type (currently only NuBits, but in the future we may add currency units anchored to Euro, British Pound, etc.), public address and authorized amount in their client. Shareholders can vote for one custodian (commitment to dividends) for one million NuBits, and at the same time they can vote for another custodian (member of the core development team) for 200,000 NuBits. The unique identifier of the custodian is his public key address. When a NuShares holder digs a PoS block, his vote will be packaged into the PoS interest currency transaction in the form of a transaction. The information includes the currency type, RIPEMD -160 value (a 20 byte long public address) and a uint64 value showing how many satoshis are authorized. If a multi-signature transaction is used, a pay-to-script-hash address (pay-to-script-hash) will be displayed below the RIPEMD-160 type data.
2． Interest rate curve for depositing NuBits: NuShares holders need to set different interest rates for different NuBits storage periods. The storage period starts from 1 block length and gradually increases by 2 times: 2 blocks, 4 blocks, and 8 blocks. .. In the system
, the block time length of the storage period is represented by a uint8 number: 0 means 1 block, 1 means 2 blocks, 2 means 4 blocks, 3 means 8 blocks... Deposit rate Represented by a uint32 number, its value indicates how much
Satoshi interest should be paid to each deposited NuBits. The interest rate vote that is put into the interest currency transaction information comes from a two-dimensional matrix. The first dimension includes numbers of unit8 and unit32 types. NuShares holders can efficiently set the minimum and maximum storage interval periods to exclude other periods.
A shelf life of 12 means 4096 blocks of time, 13 means 8192 blocks of time, 14 means 16,384 blocks of time, etc. 19 represents a time of 524288 blocks. This staker sets a zero interest rate for block time 4096 (period code 12) and below. Also voted to set zero interest rate for 524288 block times (period code 19) and above. A user can deposit NuBits with any non-zero interest rate period. For example, the time to store 6000 blocks or 14000 blocks. In this case, a weighted average will be calculated as the final deposit rate. The client interface can allow users to manually configure deposit rates that are twice the period length of each other. The period code will be converted into a block count plus a time span. (e.g. displayed as X days). In addition to entering the number of Satoshi, the user is also required to give an annualized interest rate, which can be converted into the number of Satoshi by the client.
The deposit vote interface will have a button to add a shorter period and another button to add a longer period. When any of these buttons are pressed for the first time, 131k block cycles will appear in the grid. The extra row number will indicate adjacent cycles above or below depending on which button was pressed. If no data is entered, the rates for other periods default to zero. Calculate the time of each included block, place this data in the UI, and the code will interpret it as a block count. Next to each period is a text box for entering the interest rate for the corresponding period. Don't forget that initially the block interval was one minute, we expect to change this so write the code so that we don't have to change the block interval if the PoS block target interval changes later.
3． Motions: Since proposals can be of any form, they cannot be automatically enforced by the protocol, nor are we prepared to do so. Of course, the protocol can only store votes on proposals, and then check the votes to see if a particular proposal was approved. It is up to the shareholders to ensure that those proposals that are passed can be proposed by anyone. Although the proposal is generally in text form, it can be in any electronic format or document. Proposals are encrypted using a RIPEMD-160 hash (40 hex characters in length) and distributed with the proposal. When it is necessary to vote for a proposal, enter the corresponding 40 hexadecimal characters in the user interface, or obtain it from a data source, and the data will occupy 20 bytes of space. When writing interest on the blockchain when trading coins.
A proposal is considered passed if it receives 5001 votes in any 10000 consecutive blocks and is supported by a majority of the share age (coin age) in these 10000 consecutive blocks. A block explorer will discover and display those proposed links. This block explorer will receive funding for development prior to the launch of this project.
The length of PoS interest currency transactions will be limited by the protocol to 1000 bytes, although it is generally about 150 bytes. In addition to voting and interest coins, the content also includes the actual interest rate (in addition to the miner's vote) used to deposit transactions on the block.

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