Welcome to the MPATH Weekly Report.
Some major news this week as MPATH joins the DHEDGE fund. This has given a welcomed boost to both the number of active MPATH tokens and our capital base.
We should start to see our income rewards rising from now on as a proportion of our overall income. You can read about MPATH and DHEDGE here, and let us also not forget our income from DCity. This has allowed us to show a modest rise in the token distribution for this week.
Let us also note that this increase is on the back of a falling HIVE price. This is something few people still seem to grasp: that the profitability of the Hive blockchain measured in HIVE has very little to do with HIVE's external market price. Indeed, we often see an increase in earnings as some people decrease their activity due to their perception that they are earning less.
Sure, if you wish to measure everything in Dollar terms, or in BTC, then income may have dropped, but that is only true at the moment of cashing out. I have no control over the markets, but I do know that the timing of selling tokens is a totally different matter to generating such tokens in the first place. Everyone will have their own strategy - and it is important to actually have one - but accumulation and extraction are different processes.
Indeed, I know there are a number of delegators to M who have entrusted their tokens to us so that they will further accumulate passively. Whether you prefer to delegate or buy tokens, both MPATH and M are secure tokens that can be treated like deposit accounts so that members continue earning while taking a breather from being active participants on Hive. They are secure in the sense that both funds are asset-backed and hence every token is actually worth its weight in HIVE.
The most important parameter to measure the health of a Graphene-based DPOS system such as Hive is the activity - and the only activity possible is to vote. This can be seen in both the "recent claims" number, which is huge and not easy to digest, and the yield on an upvote. It is this latter number that I track and currently yields about 24% APR for a whale vote of 1 million HP. Because of the non-linear reward curve, most people's votes are worth just over half this number, with then a further half going to authors. This means a modest self-vote will yield the author about 6-7% APR based on their HP.
Messing around with voting parameters and distribution percentages will do nothing to increase activity and will do nothing to make HIVE more attractive as an investment. Let us also not forget Dan's words that Steem itself was envisioned as a defi product and that the social media aspect was there to generate... activity!
More activity generates more value and actually then decreases those currently high yields to more modest, yet still attractive, levels.
How does one increase activity? Power up more and vote more. Very simple.
If you're offline, set up an autovoter for when you're absent. You will still have enough juice for when you're back online. This isn't about "voting for the curation", it's about being an active citizen even if you're not personally logged in. A good citizen is an active citizen.
Be good.
Back 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 1 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 = 39,510
Earning HP = 39,610
Voting HP = 36,570
HP in MPATH = 19,320
Other HIVE = 2,050
Total HIVE = 21,370
MPATH ABV = 0.521 HIVE (+0.002, +20% APR)
Estimated Gross Earnings = 6.94 HIVE per 1000 MPATH = 36.1% APR
(6.94 = 1.47 income + 5.47 votes)
Estimated Net Earnings = 4.20 HIVE per 1000 MPATH = 21.9% APR
(4.20 = 1.47 income + 2.73 votes)
Total MPATH Distribution = 58.0 HIVE = 96.7 MPATH tokens (at 0.60 HIVE sale price)
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.
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Do you guys have a discord?
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