i'm considering investing but I don't get the digishield even after reading the OP.
How do you stabilize price without btc but NAUT ?
Sorry if i'm dumb
Ultimately the stabilization fund is handled EXTREMELY carefully. The NAUT gets sold, and in turn buys back in (and of course vice veras, it has a constant flowing cycle between buys and sells. This fund is to help enforce that wild swings do not happen as crazy as other coins. Now this is the first coin to attempt this.
The point behind the NSF is that if a merchant ends up receiving "x naut" worth "x fiat" that merchant can immediately change that naut for that fiat (if they wish) and get their return on product sales without a loss.
Ultimately it's been established a 1% premine makes it VERY difficult to help enforce prices remain "calm" if you will. (also some early issues with the exchange agx kind of caused some problems, but now the NSF trades on any exchange), what the NSF can do, however, is create "speed bumps" that will help to prevent wild swings, at least for a period of time. It must also be pointed out (as BK has stated) the NSF will buy and sell at ANY price. So whether NAUT is worth 10k satoshi, or 100k satoshi, the NSF will still be buying AND selling.
Basically the NSF does have both BTC and NAUT due to the cycle.
The reason behind the NSF is merchant acceptance. Bitcoin itself went from over $1k in september of last year, down to $420 just a few weeks ago. If a merchant were to have sold something for BTC in september based on the value then, but waited to cash in until now, they'd obviously be at a loss.
Many small businesses have a safe for cash, and at the end of the day the business owner often takes cash from that safe, and takes it to the bank.
The basic idea behind the NSF is that when a business person takes their NAUT to the bank at the end of the day, they end up receiving the worth of the naut as of the time the transaction took place.
Now, digishield has to do with block targeting and difficulties, but it can't prevent dumps.
As above stated, 1% premine makes it really difficult to enforce this, tack on the massive dumpers thanks to multipools, and it's even more difficult, but ultimately the idea can be sound, this also can make NAUT more attractive to merchants. And as I stated in a previous post, I could come up with the greatest invention ever, but it's worthless unless someone buys it.
Now, I'm not saying NAUT is worthless in fact i think it's very valuable (and undervalued right now), I just wanted to provide examples.
With not only with the NSF, but tack on the active contact BK has had with the community, and with trying to get payment processors, plus wall street connections (he's planning something he's called "Sponsorship" and we're all waiting with baited breath on what that is), I see this coin skyrocketing, and never falling back below 10k again.
