NuBits market last 24 hours
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How are NuBits created?
There are two ways NuBits are created.
First, when individuals who possess NuShares reach a consensus to grant NuBits to a custodian. A custodian is a person/entity (or persons/entities if multisignature transactions are used) that pledges to use the NuBits in a particular way, such as raising funds for dividend distributions or funding development. Voting occurs among all NuShareholders, and if a custodial grant is successful the NuBits are transferred to a specified address.
Second, when a NuBits user chooses to “park” their NuBits for a set duration in exchange for an interest rate offered by NuShareholders. At the conclusion of the parking period, new NuBits are generated to pay out the interest owed.
How do NuBits maintain their $1.00 US value?
NuBits are notable for being the first decentralized cryptocurrency to maintain a $1.00 US price peg for a period of one year, having accomplished it on September 23, 2015.
Price is maintained by users placing huge market orders in both sides of 1 USD (or their equivalent in non USD exchange pairs), commonly refereed as sell and buy walls, to support the price within a narrow range of the 1 USD peg. The incentive to do so is the small commission between the market order and the 1 USD peg, usually <1%. Different users compete to be the closest price , so orders are filled with their walls and earn their profit, at the same time strengthening the 1 USD peg.
A multi-tiered liquidity operations plan has also been formed that the network is currently in the process of implementing. Liquidity operations help ensure that there is plenty of buy- and sell-side support for NuBits at $1.00 US.
- Algorithm: Proof of Stake
- Pre-Mine: 0%
- Block Time: 60 Seconds
- Launch Date: 23/09/2014
