Announcement on The Determination of NBS Inner Market Stable-coin Points and Mining Overall Solution
Dear NBS&BTS community, investors:
After intense discussion, research and preparation, the council has planned and formed a complete set of mechanism scheme of stable-coin, points, stake mining and lock position mining in NBS, which has been approved by the core group of the council.
We will launch lock position mining at 18:00 on September 28th.Investors please pay attention to the inner market mining certificate MINER hanging order. Before October 15, we will turn on all the functions in this solution in batches. Investors, please pay attention to the Council follow-up announcement and NBS inner market.
NBS System Stable-coin Solution
1. Background introduction
Derived from a fork of the BTS network, NBS inherits all the best features of BTS, so the NBS system is naturally supported by stable-coin features. Although the stable-coin scheme of BTS has many problems, there is no denying that the stable-coin scheme based on BTS is still one of the most advanced stable-coin schemes at present.
How to effectively solve the problems of stable-coin in the BTS system has been plagued the whole BTS community for a long time. The birth of NBS itself optimizes the remaining problems of stable-coins. The NBS community will devote itself to decentralized stable-coin solutions and optimization solutions, and use this as an opportunity to launch more secure, reliable and healthy stable-coin solutions, thereby helping the entire decentralized stable-coin program contributes the wisdom of the NBS community.
This article will elaborate on the NBS community stable-coin solution, which includes the stable-coin total control mechanism, staking and liquidation buffer design by the NBS community, as well as the optimization and improvement of the stable-coin mechanism in the original BTS system. These designs and solutions can well solve the current problems encountered by the BTS community, and can solve potential system problems in a forward-looking manner, providing theoretical support for the early development of the NBS stable-coin.
2.NBS Stable-coin Core Solution
As shown in Figure 1, the whole NBS stable-coin solution can be divided into two directions: mechanism design and scheme optimization. In the mechanism design, NBS proposes total stable-coin control mechanism, staking and liquidation buffer mechanism and black Swan protection mechanism. In the program, NBS has improved and optimized the three programs of feeding price, compulsory liquidation and blow up. NBS stable-coin solution details are as follows:
Figure 1 logic diagram of NBS stable-coin solution
First, Stable-coin Total Control Mechanism
The total amount of stable-coins in the NBS system is output based on actual market demand, avoiding inflation caused by too many stable-coins or deflation caused by too few stable-coin.
The total stable currency control mechanism in NBS system follows three principles:
1. The NBS Community Council is responsible for adjusting the total amount of stable-coins in the NBS system and manages it through multiple signings;
2. Under non-extreme market conditions, the adjustment of the total amount of stable-coins in the NBS system is determined by market demand, and the adjustment trigger needs to meet the following two conditions at the same time:
(1) Stable-coins overvalued by 1% or more for three consecutive days;
(2) The actual output of stable-coin should reach 90% or more of the total upper limit.
3. Under special and extreme market conditions, the total amount of stable-coin in NBS system shall be decided by the Council, and the reasons for adjustment shall be explained to the community in time.
Second, Stake and Blew Up Buffer Mechanism
In order to avoid the impact of stake on the stability of the system, NBS system adopts the buffer mechanism of stake and blow up. Specifically, the NBS system adopts the minimum mortgage rate of 2.0 and the blew up rate of 1.5. Through this mechanism, the buffer zone can be reserved for the system’s stake and blow up, which further reduces the impact probability of blow up on the system.
Third, The Black Swan Protection Mechanism
The black Swan protection mechanism has played a huge role in the BTS system, and has been proved to be effective in protecting the interests of investors and maintaining the safety of the whole system. Therefore, the NBS system will continue to support the mechanism, that is, when the minimum stake rate of the liquidation account reaches 1.1, the feed price will not be lowered.
Fourth, Feeding Price Mechanism Optimization Scheme
The NBS system will continue to promote the optimization of the feeding mechanism in view of its great role in the BTS system, which effectively avoids the feeding price distortion caused by the operation of outer exchanges. Aiming at the real-time transmission of inner and outer market price caused by the 48-hour weighted average price encountered in the current BTS system, the NBS system will adopt the strategy of taking the maximum value of the 6-hour weighted average price and the current price of each outer market, so as to find a balance between feeding price distortion and real-time transmission of price.
Fifth, The Optimization Scheme of Compulsory liquidation Mechanism
Compulsory liquidation mechanism plays a special role in stable-coin system and is an indispensable part of the whole system. Considering that the current compulsory liquidation waiting time is 24 hours, it brings many uncertainties to the system and is not conducive to the stability of the whole system. In view of this, the NBS system revises the waiting time of compulsory liquidation to 2 hours, and the compulsory liquidation compensation is increased to 2%. All the compulsory liquidation compensation belongs to the system, that is, compulsory liquidator obtains NBS at the price of (feeding price*102%), but the forced liquidator obtains stable-coins at the price of (feeding price).
Sixth, The Optimization Scheme of blew up mechanism
In order to maintain the safety and stability of the whole system and resolve the impact of blow up on the system, NBS system adopts a comprehensive solution of positive incentive and reverse punishment, as follows:
（1）The handling fee of blew up shall be increased to 10%, which shall be paid by the blew up account;
（2） The blew up fee of 9% is charged by the system, and the blew up order is posted at the price of (feeding price * 99%);
（3） The system will return 7% of the handling fee to the account that receive the blew up order as a reward;
（4） The technical team will develop a procedure for returning the handling fee of blew up account (it is only necessary to check the block where the blew up transaction occurs with the program, without modifying the core code). If the blew up transaction occurs, the system will automatically return the corresponding reward to the account that received the blew up order within 3 hours.
（5） The operation and maintenance personnel who run and check this service fee return procedure every day will receive a fixed salary of RMB 2,000 per month (paid at NBS, calculated as the average transaction price on the last day of each month) and a bonus of RMB 10,000 per month if the operation and maintenance personnel execute this service fee return procedure accurately and timely.
3. Trial Operation and Supplementary Instructions
In order to ensure the safe and stable operation of the NBS stable-coin program, the program will adopt a trial run verification program. The entire program will be tested for 6 months, and the final operating parameters will be determined based on the results of the operation.
After the operating parameters are confirmed, the Council will be responsible for the stability maintenance of the entire parameters. If the parameters need to be adjusted, the community needs to form an adjustment consensus, and the voting rate exceeds 80%.
NBS Community Council Points (NCN) Management Guidelines
In view of CNvote’s excellent performance in BTS community governance, in NBS community construction, the Council will always uphold DPOS community consensus, inherit and improve the Council points management criteria, and fully tap the great potential of Council points in building community consensus, stimulating community vitality and promoting community development. To this end, CNvote will be issued in NBS community. The details are as follows:
1.The Total Number of Points
NCN issued a total of 1.2 billion, will never be issued.
2.Integral Enablement
NCN, as a deflationary asset, will be produced at an annual “arithmetic” rate of half; 720 million NCN will be produced through stake mining and lock position mining, 30 million a month, production halved the following year; 480 million NCNS will be produced through single mining, trading mining and other activities;
3.Value Potential
NBS mining account on the chain of the Council, monthly fixed expenditure of 3 million NBS for NCN buyback and burnt; In the future, 40% of commission income from NBS Council account will be used for NCN repurchase and burn; 40% will be used for the repurchase and burn of NBS, the repurchase price is the average transaction price on the last day of each month, and the repurchased NCN will be uniformly burnt.
NBS System Stake mining Management Rules
NBS system supports a variety of stake stable-coin, such as NBCNY, NBUSD, etc. At present, the priority is to launch the stake mining function of NBCNY. The collateral mining rules apply to all collateral stable-coin in the NBS system.
1.The Amount of Reward
According to NBS Community Council Points (NCN) management standards, 15 million new Council points (NCN) will be produced by stake mining every month, and the output of NCN will be halved year by year.
2.Mining Participation and Withdrawal System
（1）Issue SCNY (Super CNY) tokens on NBS chain as collateral mining reward vouchers;
（2）Set up SCNY/NBCNY trading pairs in the inner market. Buying SCNY means participating in mining, and selling SCNY means withdrawing from mining;
（3）SCNY/ other assets will withdraw from mining when they are replaced by other assets;
（4）In order to encourage investors to invest in long-term value, a fee of 5‰ will be paid when they withdraw mining. Specifically, investors can buy SCNY at 1 NBCNY to participate in mining, or sell SCNY at 0.995NBCNY to withdraw mining.
3.SCNY Quota Management System
（1）Release 3 million SCNY mining quota in the first phase;
（2）If the price of SCNY exceeds 1.05 YUAN for three consecutive days, the Council will release the next incremental mining quota at its discretion. The quota for each phase is 10% to 50% of the total amount released;
（3）The total release amount of SCNY shall be between 30% and 60% of the maximum amount of NBCNY’s total issuance. If it is beyond this range, the two parameters shall be adjusted accordingly.
4.Measures for The Administration of Awarding Mining Rewards
（1）Take two random snapshots of SCNY accounts every day, and calculate mining reward by taking the lowest number of positions;
（2）Except for the account issuing SCNY, distribute weighted and average daily mining reward to all accounts holding SCNY based on the number of positions held;
（3）The mining bonus of the previous day will be automatically issued through the batch distribution process from 22:00 to 24:00 every day.
5.Operation and Maintenance Management System
In order to ensure the stable operation of the system, the operation and maintenance personnel who maintain the mining system will receive a fixed salary of 2,000RMB per month (paid in NBS, calculated as the average transaction price on the last day of each month) and a bonus of 10,000NBS under the premise of ensuring the safety, accuracy and stability of the system. In addition, a one-time payment of 300,000 NBS will be paid to the technicians who are responsible for the development of the three functions of blew up, stake mining and lock position mining.
Important note: Since the total daily bonus of stake mining is fixed, the proportion of NCN airdrop obtained by the funds involved in stake mining will decrease with the issuance of each incremental quota. The participation quota of stake mining is limited. Please pay attention to the launch time of stake mining in time.
NBS System Lock Position Mining Management Rules
In order to encourage NBS investors to hold NBS for a long time and share the dividends of long-term development of NBS community, NBS system will launch the function of lock position mining. The specific management rules are as follows.
1.The Amount of Reward
According to 《NBS Community Council Points (NCN) Management Standards》, 15 million new Council points (NCN) will be produced by lock position mining every month, and the output of NCN will be halved year by year.
2.Mining Participation and Withdrawal System
（1）Issue 500 million MINER tokens on NBS chain as incentive vouchers for lock position mining.
（2）Set up MINER/NBS trading pairs in the inner market. Buying MINER means participating in mining, and selling MINER means withdraw mining;
（3）MINER/ other assets, when replaced by other assets, also withdraw mining;
（4）In order to encourage investors to invest in long-term value, investors will pay 5‰ commission fee when they withdraw mining. Specifically, investors can participate in mining by buying MINER at 1 NBS price, and can withdraw mining by selling MINER at 0.995 NBS price.
3.Mining Award Distribution Management Rules
（1）Take two random snapshots of the MINER’s account every day, and calculate mining reward by taking the lowest number of positions held;
（2）Except for issuing MINER’s mining accounts, all MINER’s accounts shall be allocated weighted and equal daily mining rewards based on the number of positions held;
（3）The mining bonus of the previous day will be automatically issued through the batch distribution process from 22:00 to 24:00 every day.
4.Operation and Maintenance Management System
In order to ensure the stable operation of the system, the operation and maintenance personnel of the mining system will receive a fixed salary of 2,000RMB per month (paid in NBS, calculated as the average transaction price on the last day of each month) and a bonus of 10,000NBS under the premise of ensuring the safety, accuracy and stability of the system.
In addition, a one-time payment of 300,000 NBS will be paid to the technicians who are responsible for the development of the three functions of blew up, stake mining and lock position mining.
Important note: Since the total daily reward for mining is fixed, the profit of mining depends on the number of NBS participating in mining, that is, the more NBS participating in mining, the reward of mining will decrease accordingly.
Thank you for your support to the Council and NBS.
NBS official website: NBS. Plus
28 September 2020