MAP FinTech - M Token Distribution to Delegators and Price Increase - 28 December 2020

over 3 years ago

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

Almost a new year and perhaps not a huge amount to celebrate. However, M is doing well, with income over 14% APR and our token price slowly edging towards parity with HIVE.

Just to freshen up these posts, I've simplified the layout. The main change is that I have removed the "Hive News" section; I think the comparison between Hive and Steem was once useful but, unless anybody would really like to read my thoughts on this, is probably less than interesting now.

I have also simplified the representation of our key weekly metrics. Anybody who needs further explanations can read the last post using the old format.

However, perhaps a few words are needed to explain the new numbers. The "Hive gross actual vote" is calculated using blockchain metrics and factors in the non-linear curve for our current Hive Power. This is a gross figure that includes both the author and curation rewards. If we only relied on standard curation rewards, then our income would likely be about half of this value. The "Hive gross linear vote" represents the maximal value possible with a VP of 1 million HP and hence is a fair approximation to the asymptotic linear vote. This too is the gross amount, so includes the author and curation rewards; it really only applies to whales but it remains a useful blockchain benchmark.

One major difference between those two values is that the "linear vote" is calculated merely at the point of delivery, so it really is the size of the vote as seen on posts in HBD; in contrast, the "actual vote" is calculated based on payouts, so includes a sensitivity to the value of HBD at payout. It is therefore possible for this latter vote to be higher than the former, although this only happens when HBD is significantly higher than the $1 benchmark.

Lastly, to shorten somewhat the discussion of the fund's overall net asset value (NAV), note that the NAV is held at approximately 3-5% above the quoted buyback price. This allows us to manage any price slippage due to third party tokens. It also means we can manage the balance between blockchain income and other trading income. If M should ever cease operations, we would distribute our holdings at the NAV.

The Numbers

Distribution to delegators = 0.273% = 14.2% APR

Buyback price = 0.911 HIVE (+0.002) = +12.1% APY

Hive gross actual vote = 15.4% APR
Hive gross linear vote = 24.1% APR

The Hive vote estimates are calculated based on the average weekly prices. The "gross actual vote" is calculated based on our HP; the "gross linear vote" is calculated based on a stake of 1 million HIVE and hence approximates to the reward curve asymptote.

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.

Have a fine week!

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

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