MAP FinTech - M Token Distribution to Delegators and Price Increase - 31 August 2020

@accelerator 68

over 3 years ago

LeoFinance

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 significant amount.

M News

A mixed week, with distribution yield slightly down but our capital base higher.

Our returns of 16-17% APR have to be seen within the context of the overall Hive platform yields. A HP of, say, 10,000 HIVE will yield a vote worth about 14% APR, that is then distributed in such a way that about 7% will go to the author. So, for the vast majority of members and delegators, our M token yields far more than they could earn from their own voting power. That it may recently be drifting lower is merely a reflection of the activity of the whole blockchain.

The other main news is that we now have our own DCity. This has been built up over the past few weeks and is now large enough to (hopefully) earn some decent extra income. We are also posting some articles analysing DCity cards; we hope these will help both new players and those who need some extra insights into the bewildering array of cards available.

Our official buyback price has increased to 0.877 HIVE, with the sale price fixed at 0.95 HIVE.

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 0.874 to 0.877 HIVE, an increase of 0.343%, equivalent to 17.8% APR.

Our distribution to delegators is 0.307%, equivalent to 15.98% APR.

Hence, total value distributed to delegators, adjusted for the token price increase, is 16.02% 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.

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 840k HP whereas Steem has about 810k SP, both more or less flat on the week.

Also, taking 1 million as our whale HP/SP, a Steem upvote is worth around 41% APR, and falling, whereas a Hive upvote is worth about 24% APR and edging lower. 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 16-17% APR for this week is very good value for both delegators and token holders.

Last week I mentioned that I thought such figures somewhat puzzling, but note that the recent claims on the two chains are in exactly the same ratio as their yields. Thus the reward pool is being shared among many more claims on Hive, hence the lower yield.

Have a fine week!

Any questions, please ask in the comments below or in our public chatroom.

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