MPATH Weekly Report and Token Distribution - over 23.0% APR - 6 February 2021 [MAP Hive FinTech]
Welcome to the MPATH Weekly Report.
This week sees income figures and distribution that is almost identical to last week. What has changed is that the number of MPATH tokens has increased slightly again, but this week the investment income has also increased a bit.
This is all within the context of a crypto rally and a DCity price slump! This has happened before, back in about May 2020. the current price-action is modest compared to that, but HIVE has still seen a 50% increase from the recent lows and it does seem to affect SIM prices.
Crypto games are just forms of investment; accumulate and cash-out when the price looks good. To reverse the current SIM price trend just requires some patience and a steady tax policy; two things sorely absent. I wrote about this many months ago, that the 2-week presidential period is very short compared to the break-even point of a city, and therefore players need to elect someone with the confidence to stick to a steady policy. Fat chance! Enjoy the ride.
Our net estimate of over 23% APR shows we remain significantly higher than the 15% yield the chain produces for the average user with under 100k HP. Also a reminder that gross income is distributed across both the distributed tokens and the increase in official token price; our NAV remains much higher than the ABV as insurance against any negative effects on our investment value.
We are now very close to switching over to our new voters. It has taken some time but there have also been changes to how dhive works, plus some holidays. I shall announce it once they are switched on. A reminder to new members that votes do not come from this @mpath account - it manages the funds and posts articles - but from our dedicated voters of maxuve and sometimes maxuvd. I say sometimes as it is designed to give random boosts to some member posts, thereby elevating slightly the income to smaller accounts while maintaining the profitability of those on 2000 MPATH tokens.
Our buyback MPATH token price will continue to rise in line with the whole fund's asset value, but as the increments are in 0.001 HIVE weekly price changes may vary so as to keep pace with the NAV. The capital base remains healthy and other sources of income, such as DCity and DHEDGE, continue to perform well so that we are not wholly reliant on the voting-economy. We have started increasing the sale price above the original 0.60 HIVE; this will be slower than the buyback price until we reach a spread of about 0.03 HIVE, at which point they will rise in unison.
One other thing to note about the sale price: the Hive-Engine platform deletes open orders after 30 days, so that the lowest available sale price will, at some point, be removed automatically. You will thus see 4 or 5 sale price-points as the price ladder slowly makes its way upwards.
I also see users buying and selling in the current large spread between our official buy and sale prices. That's all fine and the reason we have a market.
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.
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 = 43,530 Earning HP = 42,700 Voting HP = 38,605
HP in MPATH = 22,140 Other HIVE = 3,520 Total HIVE = 25,660
MPATH ABV = 0.566 HIVE (+0.002, +20.2% APY) Sale Price = 0.607 HIVE
Estimated Gross Earnings = 7.33 HIVE per 1000 MPATH = 38.1% APR (7.33 = 1.75 income + 5.58 votes) Estimated Net Earnings = 4.54 HIVE per 1000 MPATH = 23.6% APR (4.54 = 1.75 income + 2.79 votes) Total MPATH Distribution = 76.0 HIVE = 124 MPATH tokens at 0.607 HIVE sale price
Hive est. APR = 15.2%
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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