Weekly update 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, with returns holding steady at 17% APR.
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, now at 0.868 HIVE. 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 0.866 to 0.868 HIVE, an increase of 0.231%, equivalent to 12.0% APR.
Our distribution to delegators is 0.325%, equivalent to 17.0% APR.
Hence, total value distributed to delegators is 17.04% 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, the token price has risen a modest amount. As always, such adjustments are designed so that the buyback price remains essentially the asset-backed price. I don't think we have ever lost money in a week, but there are times when third party tokens held need to have their prices adjusted to reflect their own value.
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 842k HP and edging upwards this week, whereas Steem has dropped substantially to 813k SP and is now lower than Hive.
Also, taking 1 million as our whale HP/SP, a Steem upvote is worth around 44% APR, and falling, whereas a Hive upvote is worth about 26% APR and holding steady. 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 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 Hive recent claims are some 75% higher than on Steem. 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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