This article is being considered for deletion in accordance with Wikipedia's deletion policy. |
| NuBits | |
|---|---|
 | |
| Denominations | |
| Symbol | USNBT (prev. NBT) |
| Demographics | |
| Date of introduction | 23 September 2014 |
| User(s) | Worldwide |
| Issuance | |
| Administration | Decentralized |
NuBits is a cryptocurrency which advertises itself as a stablecoin issued by a DAO under the same name. [1] [2] [3] Shareholders achieve stability in NuBits by placing buy and sell orders at $1.00 using revenue from NuBit sales kept in external digital currencies (such as Bitcoin). [4]
A cryptocurrency is a digital asset designed to work as a medium of exchange that uses strong cryptography to secure financial transactions, control the creation of additional units, and verify the transfer of assets. Cryptocurrencies use decentralized control as opposed to centralized digital currency and central banking systems.
Stablecoins are cryptocurrencies designed to minimize the volatility of the price of the stablecoin, relative to some "stable" asset or basket of assets. A stablecoin can be pegged to a currency, or to exchange traded commodities. Stablecoins backed by currencies or commodities directly are said to be centralized, whereas those leveraging other cryptocurrencies are referred to as decentralized.
A decentralized autonomous organization (DAO), sometimes labeled a decentralized autonomous corporation (DAC), is an organization represented by rules encoded as a computer program that is transparent, controlled by shareholders and not influenced by a central government. A DAO's financial transaction record and program rules are maintained on a blockchain. The precise legal status of this type of business organization is unclear.
NuBits attempts to keep price stability by distributing voting shares (NuShares), which have the ability to vote on motions and network changes. Holders of NuShares earn rewards as an incentive to stabilize the network. Partial revenue is distributed to shareholders to create a mechanism for deep backing by incentive for investment when NuBits leaving circulation exceed the value of Nu's liquidity reserve. Additionally, holders of NuBits have the ability to lock away NuBits to gain interest (from Nu's reserves), which in turn reduces the circulating supply. [5]
As of March 18th, 2018, NuBits has decoupled from its $1.00 price and has not been able to maintain a stable peg against the US dollar, trading at $0.35 as of June 2018. [5]
