MAP FinTech - M Token Distribution to Delegators and Price Increase - 19 July 2021
Our weekly report for both delegators and token-holders of M.
Delegators have received their token distribution and token-holders see the price rise a small amount this week. (Distro today, bit of a delay.)
M News
We are seeing renewed turbulence across markets and these are reflected in our own returns. Being a level-2 token means being subject to both the primary token, HIVE, and then its own price relative to the broader market. Looks like a second wave of panic selling - which is always a really bad idea; either start selling on the turn or on the way down - not near the bottom.
That markets are efficient mechanisms for rational actors is, of course, one huge joke. Anyway, regarding the numbers below, what I see is two phases happening together, so that weekly values continue to bounce around. In this case, we see the Hive ecosystem regauging to the new economic algorithms but at the same time we see the coin price fall sharply. Because the blockchain coin price does play an important role, hence we are seeing numbers jump around. For example, at the moment, the median blockchain price is well above the market price. Indeed, we may soon be in debt-ratio territory and users will start whining about the price of HBD - a symptom of the ignorance of what HBD does as a market stabiliser, which is different to its alleged role as a stable-ish coin.
One other thing to note is that the DLease rate quoted below is distorted upwards by just two requests; the vast majority of delegation requests are now in the 10-11% range.
I have finally made a change to the MAPR token, so expect something similar for M. I will give it another week to run, then announce it in a separate post. Apologies, I keep forgetting this - will try and do it soon.
One change to our terms. Please see below that the minimum delegation has been increased to 100 HP. Honestly, delegating 10 HP is not of much use to anybody! For the moment, we are allowing existing delegators under 100 HP to continue receiving distributions, but any changes in the amount delegated must then meet the new minimum. We reserve the right not to issue rewards to such accounts if they do not meet the new minimum. Thanks to a few members who I notice have increased their delegations in recent weeks.
We continue to navigate through a volatile period. It remains interesting to see that what may be good for HIVE need not always be so good for the tokens priced in HIVE.
The Numbers
Distribution to delegators = 0.200% = 10.4% APR
Buyback price = 0.9491 HIVE (+0.0001) = +0.6% APY
Hive gross actual vote = 22.1% APR (+0.2)
Hive net author rewards = 11.5% APR (+1.1)
Dlease Hive lease max = 12.9% APR (-0.0)
The Hive vote estimates are calculated based on the average weekly prices. The "gross actual vote" is now calculated based on our HP and is the same as the old "gross linear vote", that we have now removed; the "net author rewards" estimates the payouts adjusted for HBD and assuming a "gross actual vote".
Minimum delegation is 100 HP. Changes in delegation, including new ones, start earning rewards after 2 days.
Existing delegators under 100 HP who change their delegation must then conform to the new minimum or forfeit earnings.
The buyback price increase is shown as an APY because members are automatically compounding their tokens, whereas the distribution uses an APR value as that reflects the delegation income. Older-style info can be seen in our last post using the old format. The new format is explained in more detail here.
Have a fine week!
Any questions, please ask in the comments below or in our public chatroom.
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