# Neutrino Governance
# Introduction
NSBT (Neutrino System Base Token) is the Neutrino (opens new window) protocol governance asset designed to ensure the stability of the reserves of the Neutrino smart contract (opens new window) through a reserve recapitalization mechanism.
You can invest in NSBT to influence Neutrino protocol product development decisions. Having NSBT on your balance allows to vote (opens new window) for new product features, changes to the governance parameters and other important items effecting the product development roadmap. When voting you specify the amount of NSBT you want to vote with (1 vote = 1 NSBT) and that amount will be frozen until the end of the voting period.
The pricing of NSBT depends on so-called Backing Ratio (BR) parameter - the proportion of reserves in relation to the supply of USDN asset. See current Backing Ratio value (opens new window).
# Invest in NSBT or exchange NSBT to USDN
Open Waves.Exchange (opens new window) app, login to your account and navigate to the Investments tab. Then click Neutrino Governance.
My Balances tile displays important information such as current WAVES, NSBT, USDN price in USD, your WAVES, NSBT and USDN balances. The displayed total balance is the total amount of your funds: available + reserved.
Depending on the current Backing Ratio that can be either >= or < than 1 (100%) the Neutrino Governance page has two different operation algorithms and user interfaces.
If the Backing Ratio is <1, the system allows to make profit by investing WAVES in NSBT. You invest when the NSBT/USD exchange rate is <1 and then the system automatically exchanges NSBT to USDN when the NSBT/USD exchange rate becomes >=1.
If the Backing Ratio is >=1, the NSBT to USD exchange rate becomes >1. In this case, the contract guarantees that you can exchange any amount of NSBT to USDN at any time at 1:1 rate.
Note: You need to have WAVES to invest in NSBT. To buy WAVES follow the steps described in Buy Cryptocurrency with a Bank Card article. For quick access to the WAVES buying page click on the card icon. You can also get WAVES by trading, as described in Start Trading on Waves.Exchange article. For quick access to the exchange page with WAVES selected click on the exchange icon. If you have not enough WAVES on your balance to pay the transaction fee or if you have specified the amount of WAVES that is greater than you have on your balance, click on the card icon to buy more WAVES.
# When the Backing Ratio is less than 1
# > Invest in NSBT
Navigate to I want to invest tab and fill in the Amount field.
Note: You need to have at least 10 WAVES to invest in NSBT.
Click Invest WAVES to continue.
When you click Invest WAVES your NSBT balance will be updated. After that the NSBT to USDN exchange transaction will be automatically created and queued. The transaction will be executed when the BR becomes >=1 and its turn comes. The specified amount of NSBT will be automatically exchanged to USDN at the rate of 1:1. NSBT to USDN exchange procedure usually takes 1 week to 6 months. Your queued transactions can be reviewed in My Investments tab. You can cancel transactions that are not completed. Unresolved funds, involved in the canceled transaction, will be refunded to your balance. Cancelled transactions are removed from the queue. If you need to exchange NSBT to USDN again you will need to create new request that will take the same amount of time to complete (1 week to 6 months).
# > Exchange NSBT to USDN
Navigate to I have NSBT tab and fill in the Amount field.
Click Receive USDN to continue.
The NSBT to USDN exchange transaction will be created and queued. The transaction will be executed when the BR becomes >=1 and its turn comes. The specified amount of NSBT will be automatically exchanged to USDN at the rate of 1:1. The specified amount of NSBT will be automatically exchanged to USDN at the rate of 1:1. NSBT to USDN exchange procedure usually takes 1 week to 6 months. Your queued transactions can be reviewed in My Investments tab. You can cancel transactions that are not completed. Unresolved funds, involved in the canceled transaction, will be refunded to your balance. Cancelled transactions are removed from the queue. If you need to exchange NSBT to USDN again you will need to create new request that will take the same amount of time to complete (1 week to 6 months).
# When the Backing Ratio is more than or equals 1
# > Invest in NSBT
Navigate to WAVES to NSBT tab and specify the amount in the I send field. The I receive field displays the approximate calculated amount of NSBT that you will receive. Please keep in mind that the greater the amount of NSBT is purchased the higher goes the calculated price per 1 NSBT asset. Read more about NSBT pricing (opens new window).
Note: You can invest 1 or more WAVES.
Click Invest in NSBT via Smart Contract to continue. The calculated amount will be added to your NSBT balance.
# > Exchange NSBT to USDN
Navigate to NSBT to USDN tab and fill in the I send field. The I receive field displays the amount of USDN that you will receive.
Click Exchange to USDN via Smart Contract to continue. The amount will be added to your USDN balance.
The NSBT to USDN exchange procedure is usually instant but may take up to 2 minutes. Such transactions cannot be cancelled. Completed transactions can be reviewed in the Wallet > Transactions (opens new window) tab.
For more details, see FAQ (opens new window).
See more articles in the Asset Management chapter.
If you have difficulties with Waves.Exchange, please create a support (opens new window) ticket or write a question on our forum (opens new window).