MAP FinTech - M Token Distribution to Delegators and Price Increase - 27 July 2020
Some great news for both delegators and token-holders of M.
Delegators have received their token distribution and token-holders see the price rise a significant amount.
(Apologies that this is going out very late - never mind, all distributions were done on time.)
M News
A decent week, with returns at 17% APR.
I have described at length in previous posts the issues around payouts versus token pricing, so I shall avoid that this week.
Instead, we shall focus on one small change: the M token price spread.
I mentioned this last week, and as can be seen, the official buy price has remained fixed at 0.95 HIVE while the buyback price has nudged up. This will continue till that buyback reaches 0.90 HIVE, then both prices will rise together. The aim is to slowly narrow the spread.
I trust all members and delegators are satisfied with this. This means everyone will see some value growth and the overall fund remains fully funded and close to its asset value per token.
Also, a reminder that the delegator percentage returns are calculated on the basis of the previous week's price, plus obviously the income we generated. It is also based on the proportion of our voting SP that comes from delegators rather than from our own capital. Now, to make this a bit easier we shall publish two values: one for delegators; the other for token-holders.
The third number is merely the product of the first two weekly percentage increases and gives the true value of the distribution to delegators; it gives the true profit for that week on the assumption that those distributed tokens are sold at the new price.
I hope that makes sense. Let's have a look at this week's numbers.
Our buyback price has increased from 0.861 to 0.864 HIVE, an increase of 0.348%, equivalent to 18.1% APR.
Our distribution to delegators is 0.325%, equivalent to 17.0% APR.
Hence, total value distributed to delegators is 17.06% APR equivalent.
That value is the distribution of tokens plus their increase in market price. Thus, I hope you can see that the third calculation is hardly necessary, but I also hope it has illuminated how such calculations are done.
In the ideal situation, as M was conceived, those three numbers would be almost identical, save possibly for the third or fourth decimal place.
Indeed, this week, the token holders received a slightly higher value than delegators. This happens when trying to stay within 3 decimal places. As always, we retain the ability to manage such figures for the long-term stability of the fund and income to members.
Hive News
As Hive started as a fork of Steem, and the economic model has not changed, it is worth comparing the two reward pools: Hive has some 830k HP and edging downwards, whereas Steem has dropped substantially to 858k SP and has been stable around 850k for this past week. Without adjusting for price differentials, this in itself still shows that there is more activity on Hive.
Also, taking 1 million as our whale HP/SP, a Steem upvote is worth around 48% APR, and falling, whereas a Hive upvote is worth about 26% APR. Most users are still getting just above half of these numbers for their own upvotes due to the non-linear rewards curve, and then half again for just the author rewards. Hence, our returns of about 18% APR for this week is very good value for both delegators and token holders.
Have a fine week!
Any questions, please ask in the comments below or in our public chatroom.
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