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MAP FinTech - M Token Distribution to Delegators and Price Increase - 22 February 2021

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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

A fairly good week, with reward distribution flat compared to last week.

The price increase is the equivalent of 12.0% APY, with the distro coming in at 15.1% APR. Both are pretty much the same as last week.

Note that the yield of the Hive blockchain has nudged down again, even though the coin prices have been surging. This is the normal behaviour encoded in the econometrics: if the price rises and activity rises to earn more, then the reward pool shrinks and returns can slightly decrease in HIVE terms; returns may still be increasing in Dollar terms.

So although our returns are flat on last week, they have increased compared to the blockchain yield.

Note that the current drop in DCity yield has not impacted the M fund very much. What it has done is slightly squeezed our cashflow to fund buybacks; that can be sorted with a slight increase in our weekly power-downs, that are always active precisely to fund such situations.

We continue to navigate through a volatile period. It is, of course, good to see coin prices rise, but it is also good to plan ahead for the next down-turn.

The Numbers

Distribution to delegators = 0.290% = 15.1% APR

Buyback price = 0.928 HIVE (+0.002) = +12.0% APY

Hive gross actual vote = 14.9% APR (-0.2) Hive gross linear vote = 23.0% APR (-0.5)

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 10 HP. Changes in delegation, including new ones, start earning rewards after 2 days.

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.

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