Welcome to the MPATH Weekly Report.
Some interesting changes to note post-HF25. Firstly, our manual voting has meant we have limited our losses of the curation rewards and can distribute the same rewards as last week. However, we have limited the rise in the token price buybacks to remain below our net asset value.
Because of the general losses in curation for one week, the recent claims have decreased and hence current rewards have shot up - notice the "Hive est APR" value below. This won't last, and as the reward pool adjusts to the new economics that blockchain yield will start to drop. Because of the "curation error" this may take a further 2 weeks to fully manifest.
As I said last week, going forward, as the reward pool reacts to the changing reward curves, I expect our overall returns to drop in line with the blockchain's vote-yield. At the moment, vote values for average users are seeing an increase, but as more rewards are paid out this will decrease. The curation rewards yield will henceforth be half of the vote yield, so I see the MPATH token income moving towards higher votes and lower distros.
Having said all this, our lower estimate comes in at 25% APR, which is still pretty good!
Here is a graph of the MPATH token price. (Thanks to @gerber for the discord-bot.)
As you can see, it is a rather jagged affair, mainly because the spread remains wide so those spikes are merely the difference between someone buying tokens and someone selling them.
A reminder that this is a market, and not a shop, so although official prices are designed to guide the market, you can sometimes find cheap MPATH tokens. I reiterate that our promise is that we will guarantee official buybaks equal to that week's income. Anything above that will require some waiting for an increase in power-downs.
MPATH still needs to break through that 60-cents ceiling! We have had sales at that price, but the graph illustrates how it remains a "resistance" level of sorts, even though the official sale price is well above that level. Need even more members, really.
And on to my usual closing remarks...
As ever, I give the caveat that individual member returns depend on many things, but these are our baseline figures to see how income changes from week to week. This is also a good time to remind members that such high returns may require adjustments at times so that our Voting Power does not get too low. We have plenty of capacity left, so this is not an issue, as yet, but members with 2000 MPATH tokens are getting votes from about 35k HP, so even if the VP is down to 60% that's still an effective vote from a 21k HP account.
A final reminder that the maximum holding to receive votes is 2000 MPATH, and the maximum to receive reward distributions is 5000 MPATH. You may, of course, own more than this as an investment. We shall increase these if we see the demand to do so, but they are there to attenuate the effects of large accounts and thereby help the smaller accounts. Also worth a reminder that any accounts below 10 MPATH will receive no benefits.
For full details, please read How the MPATH Program Works [May 2020].
Have a good week!
The MPATH headline figures are:
MPATH tokens active = 42,740
Earning HP = 42,970
Voting HP = 35,970
HP in MPATH = 22,125
Other HIVE = 3,380
Total HIVE = 25,505
MPATH ABV = 0.5935 HIVE (+0.0003, +3.0% APY)
Sale Price = 0.628 HIVE (spread 0.0345 HIVE)
Estimated Gross Earnings = 8.66 HIVE per 1000 MPATH = 45.0% APR
(8.66 = 1.31 income + 7.35 votes)
Estimated Net Earnings = 4.99 HIVE per 1000 MPATH = 25.9% APR
(4.99 = 1.31 income + 3.68 votes)
Total MPATH Distribution = 56.0 HIVE = 89 MPATH tokens at 0.628 HIVE sale price
Hive est. APR = 21.2% (+7.6)
Note that "Other HIVE" is the sum of all holdings not powered up as HP: liquid HIVE and HBD plus holdings within Hive-Engine. Also note that such values are volatile, especially any holdings priced in US$, so the above numbers are a snapshot and may have changed when you look at the @MPATH account.
The Asset Backed Value (ABV) is our total holdings calculated in HIVE divided by the number of active MPATH tokens.
Any questions, please ask in the comments below or in our public chatroom.
[BUY MPATH] - [READ MPATH]
[BUY new M token] - [READ M posts]
Congratulations @mpath! You have completed the following achievement on the Hive blockchain and have been rewarded with new badge(s) :
Your next target is to reach 80 posts.
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOP