$$\lim_{n \to \infty} f_n(x)=x-\frac{1}{nx}\;\;\; g(x)=f_n^{on}(x)$$
The conjecture is for values of $|x|>\sqrt{2}$: $g(x) = \sqrt{z^2 - 2}$
This question comes from another matstack question/answer.
If $n=2^m$, then convergence is much quicker by starting with $f_n(x)=x-\frac{1}{nx}$ and then iterating the Taylor/Laurent series for $f(x) \mapsto f(f(x))$ m times. I start by generating the formal Taylor series after moving the fixed point from infinity to zero, $1/f(\frac{1}{x})\;$. Then we start iterating with $f_n$
$$f_n(x) = \frac{x}{1 - x^2/n} = x + \frac{x^3}{n} + \frac{x^5}{n^2} + \frac{x^7}{n^3} + \frac{x^9}{n^4} + \frac{x^{11}}{n^5} ...$$
Using this speedup with $m=\log_2(n)$, one can iterate the Taylor series for $f(x) \mapsto f(f(x))$ m times, rather then iterating $f^{on}$, but the two are of course identical. Its just that otherwise convergence is pretty slow, with n iterations to get accuracy to 1/n.
The formal Taylor series coefficients of $1/g(\frac{1}{x}) = \sqrt{z^2/(1-2z^2)}$ are: $x + x^3 + \frac{3 x^5 }{2 } + \frac{5 x^7 }{2 } + \frac{35 x^9 }{8 } + \frac{63 x^{11} }{8 } + \frac{231 x^{13} }{16 } + \frac{429 x^{15} }{16 } + \frac{6435 x^{17} }{128 } + \frac{12155 x^{19} }{128 } + \frac{46189 x^{21} }{256 } ...$
Empirically, for the $2^n$th iteration starting with $f_n$ in the limit above, the Taylor coefficients are accurate to approximately $O 2^{-n}$, so there is pretty good numerical computation evidence for the conjecture, but I have no idea how to prove it.
EDIT
I (https://math.stackexchange.com/users/39261/mick) will place a bounty for the following problem :
Basicly the inverse :
Suppose we are given $g(x)=\sqrt{x^2-2}$ and we are asked to find $f_n$ such that :
$$\lim_{n \to \infty} \;\;\; g(x)=f_n^{on}(x)$$
How do we solve such problems ??
EDIT
EDIT 2
As Sheldon's comment says $f_n(x)=\sqrt{x^2-\frac{2}{n}}$ is also a solution but I want to find the $f_n$ from the OP : $x - \frac{1}{nx}$ or another $f_n$ that is real-meromorphic on the entire complex plane.
EDIT 2




I'll solve a slightly more general problem with this post - that is, if $f_n(x)=x-\frac{1}{nx}$, what is the limit $$g(x)=\lim_{n\rightarrow\infty}f^{n}_n(x).$$ To do this, we first change the form of $f_n$ to a conjugation of other functions. If we define: $$f(x)=x-\frac{1}x$$ $$\alpha_n(x)=\sqrt{n}\cdot x$$ then $$f_n=\alpha_n^{-1}\circ f \circ \alpha_n$$ The advantage of this is that we can rewrite, where $g_n=f_n^n$ that $$g_n = \alpha_n^{-1}\circ f^n \circ \alpha$$ which is nice because it means we only have to study the iterates of $f$ to figure this out. However, this isn't too bad, since we only need tight bounds on $f$. In particular, consider the following equation: $$\Delta f^n=\frac{-1}{f^n}$$ where we take $\Delta_n f_n$ to be defined as $f^{n+1}-f^n$. I write it this way, because next, we can make a leap to a related differential equation; in particular, let's a function $I_x(n)$ which will approximate $f_n$. In particular, we want the following equations to hold: $$I_x(0)=x$$ $$I_x'(n)=\frac{-1}{I_x(n)}$$ This is a nice separable differential equation and has the solution (for positive $x$): $$I_x(n)=\sqrt{x^2-2n}.$$ The precise connection here is that $f^n(x)$ is basically the result of applying Euler's (forward) method to the same differential equation, with step size $1$. However, notice that we have the identity: $$\frac{I_{\sqrt{k}x}(kn)}{\sqrt{k}}=I_x(n)$$ which tells us that our differential equation scales in a certain way (see remarks at end if you want another way to see this) - but what's remarkable, is this means that $f^{kn}(\sqrt{k}x)$ uses Euler's method to approximate $I_{\sqrt{k}x}(n)$ with step size $1$ - but when we scale this result back by the above equation, we get that $\frac{f^{kn}(\sqrt{k}x)}{\sqrt{k}}$ is actually Euler's method, with step size $\frac{1}k$, approximating $I_x(n)$. As the differential equation is nicely behaved (i.e. Lipschitz continuous), we reach the result that, as we decrease the step size, we get $$\lim_{k\rightarrow\infty}\frac{f^{kn}(\sqrt{k}x)}{\sqrt{k}}=I_{x}(n)$$ setting $n=1$ yields: $$\lim_{k\rightarrow\infty}\frac{f^{k}(\sqrt{k}x)}{\sqrt{k}}=I_{x}(1)$$ and substituting $$g(x)=\sqrt{x^2-2}$$ as desired.
To really be clear, it's wise to note that when we're talking about Euler's method, what we're really doing is taking the points given from the scaling operation $\frac{1}{\sqrt{k}}f^{kn}(\sqrt{k}x)$ - which are points $kn$ which are $(n,f)$ pairs: $$\left(0,x\right),\left(\frac{1}{k},\frac{1}{\sqrt{k}}f(\sqrt{k}x)\right),\left(\frac{2}k,\frac{1}{\sqrt{k}}f^2(\sqrt{k}x)\right),\ldots$$ and saying, "Gee, that looks like Euler's method". Though, given the identity on $I_x(n)$ it is clear that this must work, it's good to try an example to be sure. Notice that the second point above ought to be equal to $x+\frac{1}kI_x'(0)$, as would be Euler's method. This ends up expanding as: $$x+\frac{1}kI_x'(0)=\frac{1}{\sqrt{k}}f(\sqrt{k}x)$$ $$x-\frac{1}{kx}=\frac{1}{\sqrt{k}}(\sqrt{k}x-\frac{1}{\sqrt{k}x})$$ $$x-\frac{1}{kx}=1-\frac{1}{kx}$$ Since all pairs of points have this same basic form, we can prove algebraically (and inductively) that $\frac{f^{kn}(\sqrt{k}x)}{\sqrt{n}}$ is actually Euler's method approximating $I_x(n)$ with step size $\frac{1}k$ which does suffice to prove the claim. This warped my mind for an hour, but I think I'm okay now.
A particular generalization of this that we can make is that if we let $$f_n(x)=x+\frac{\alpha}{2nx}$$ and, correspondingly $$f(x)=x+\frac{\alpha}{2x}$$ then we have $$\Delta f^n=\frac{-\alpha}{f^n}$$ and correspondingly $$I_x'(n)=\frac{\alpha}{2I_x(n)}$$ which has the solution $$I_x(n)=\sqrt{x^2+\alpha n}$$ and by the same argument, we prove that $$\lim_{n\rightarrow\infty}f_n^n(x)=\sqrt{x^2+\alpha}$$