A decent week so far, with some modest sales, some further powering up and the introduction of TRENDO tips to MAPXV members.
There is, however, an issue I'd like to discuss and have some feedback. I have not mentioned this before as I wanted to see how earnings from new model steem would develop, assuming the system would find some new equilibrium. I have been tracking the numbers every day and include these in my MAPR weekly posts. As we all know, earnings for the vast majority of people have dropped, and the increased curation rewards have not quite made up the difference. Sure, things look rosier if you have a ton of SP, but I'm talking about those around average rewards and below.
Now, the issue for MAPXV is that the delegation-mining rate was set before HF21 and was based on the Steem economic parameters as they then existed. Average earnings now show an increase in daily variability, are more difficult to predict and have moved downwards. The delegation-miners provide a great service so that MAPXV can operate from the start as if it had the full maximum SP of 20,000 STEEM. Indeed, MAPXV has far more than it needs, with over 28,000 SP currently delegated.
But delegation-miners are also earning MAPXV tokens, therefore the MAPXV fund has to balance the extra income from miners with the value of those tokens mined. Just imagine the extreme situation where MAPXV doesn't sell any more tokens and they all end up in the hands of miners; then, once the mining stopped, we would have 18,000 tokens looking for an upvote but far less in our own SP. This extreme won't happen (I hope) but is there to illustrate that as fund manager I need to balance the needs of the delegation-miners, the token-holders and the MAPXV fund itself.
So, I have two proposals to make. Firstly, the delegation-mining rate is to be increased from 3600 to 4200 SP-days. At the current token price, this is equivalent to about 16% APR. In the new Steem economy, this remains much higher than most users are earning from either author or curation rewards. Looking again at the last MAPR post, most users are generating about 15% APR from their votes but earning something around 7% to 11% (50% to 75%) based on combining author and curation rewards. So my proposed new rate of about 16% remains very good; also, this is based on the current price so will increase in line with the MAPXV token value.
To avoid confusion and paying out fractions of a token, I suggest I will pay out existing delegation-miners on the current dates and at the current rate and make the adjustments on those payout dates. The number 42 is divisible by both 2 and 3, so I don't think there will be any arithmetic issues. I haven't decided on a date for this, but could be next weekend when I publish the weekly report. As you can see, this isn't super-urgent but running something like MAPXV is like steering a tanker in that one needs to see any problems 2 or 3 months before they actually become a problem.
The second proposal is less controversial, and is that I'd like to cap delegations at 30,000 SP. This is for the same reason: if delegation-miners are earning faster than the MAPXV fund grows, then in the future, when mining stops, it could take a very long time to generate the SP needed so that the fund has its own 20,000 SP. This does not affect any existing delegators, but if you have intentions to increase your delegations then it would be useful to ask me first, either within a comment or on Discord.
Have a fine day!
The GR (genesis representatives) are mainly associated with producing the genesis block and starting the network. Almost a year ago, the Tron community had revoked the power of the GR in an attempt to increase rewards for all SRs and candidates within the ecosystem, despite the fact that the company had expressed its concerns over “an irreversible decision with some unknown potential repercussions.”
Our new prize is a TRENDO token tip for at least 10 days.
And, our winner today is... @abrockman .
Please comment, upvote, resteem and tell everybody about this post...
ONECENT: The First Strategic Token Investment Game (STIG)