MAP FinTech - M Token Distribution to Delegators and Price Increase - 5 April 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 significant amount.

M News

This week we see overall earnings and distribution drop a little compared to last week, but still holding well above the estimate for the Hive blockchain. Our buyback price has also risen by just 1 point, as last week, in order to adjust to the falling values of third party token investments.

This latter has become even more pronounced lately, and although we do hold reserves they are by no means infinite. Also note the slightly paradoxical chain reaction that as the HIVE price has spiked up the yield has dropped. This is actually normal behaviour as the official median price has not yet caught up with the external market price.

Because both M and MPATH are priced in HIVE and operate wholly within the Hive economy, any changes to the HIVE price in USD makes no difference at all to our earnings or distributions. Of course, it makes a difference to those who wish to grab some HIVE profits, but as far as our funds are concerned there is no net gain, or loss, in HIVE terms. What it does do is put some pressure on the HIVE-denominated capital, so we shall limit the buyback token price to reflect this.

Note that the yield on M tokens is higher than the vote-yield for our level of HP (14.4% APR) and about the same as what is available on Dlease (15.0% APR), although I note those high returns are for quite small delegations.

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.

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 = 0.282% = 14.7% APR

Buyback price = 0.936 HIVE (+0.001) = +5.7% APY

Hive gross actual vote = 14.4% APR (-0.1)
Hive gross linear vote = 22.4% APR (-0.1)

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's linear asymptote.

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.

---

Building Hive's Fintech

[BUY MPATH] - [READ MPATH]

[BUY M token] - [READ M posts]