MAP FinTech - M Token Distribution to Delegators and Price Increase - 29 June 2020

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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.

M News

A decent week, and very similar returns compared to last week at just a whisker under 19% APR.

(Apologies this post is a day late, but all members were paid on time!)

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 0.850 to 0.853 HIVE, an increase of 0.353%, equivalent to 18.4% APR.

Our distribution to delegators is 0.357%, equivalent to 18.63% APR.

Hence, total value distributed to delegators is 18.64% 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.

This week we see that delegators are getting a slightly higher return than token-holders, although most members are also delegators. I would like to keep the price to 3 decimal places, just to make it easier to read. As I said before, this does free up the possibility that the total income and the total fund value can be adjusted independently, if that need should arise.

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 824k HP and slowly drifting downwards, whereas Steem is still very high at 955k SP but has been falling rapidly this past week. Without adjusting for price differentials, this in itself shows that there is more activity on Hive.

Also, taking 1 million as our whale HP/SP, a Steem upvote is worth around 55% APR 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 over 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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2 comments
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pixresteemer_incognito_angel_mini.png
Bang, I did it again... I just rehived your post!
Week 12 of my contest just started...you can now check the winners of the previous week!
!BEER
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