MPATH Weekly Report and Token Distribution - 12 July 2020 [MAP Hive FinTech]
Welcome to the MPATH Weekly Report.
MPATH has had a good week in increasing our reward distribution, although market activity has been modest.
I think this mixed model works well and may remain this way. The "transition phase" is thus related to boosting our capital base since the transfer of many tokens from MAPX and MAPXV. The power-downs on Hive remain in place, with some remaining capital from the old MAPX token still coming in slowly.
The ABV has increased from 0.46 to 0.47 HIVE, hence our sale price has also increased to 0.57 HIVE.
The aim remains that members who post will be earning far more than they would with the same self-voting HP, and those who post infrequently are still also earning with their stake.
Because everyone has different stakes and different posting frequencies, each member will need to calculate their own overall gains from MPATH, but we do have a measure that can be tracked from week to week to see our progress. Assuming a holding of 2000 MPATH tokens and daily posting, we can calculate our maximum possible return. This is the number you see below as Estimated Earnings, and for this week it comes to 7.68 HIVE per 1000 MPATH.
This figure of 7.68 HIVE comes from two sources: about 6.01 comes from votes; and 1.47 HIVE from the reward distribution. I would like to see this more balanced in the future, converging towards an equal spread, but for now, enjoy the votes! The rewards are increasing, just not yet fast enough.
This yields a huge 40.7% APR for this week. This is not "miraculous", but a function of having a significantly higher voting HP compared to our maximum 2000 MPATH accounts. This is due to both new token sales and the transfer of capital from those winding-down accounts.
Our distribution has increased again to 58.0 HIVE and, even though the price has also increased, we are distributing more MPATH tokens than last week.
As always, I give the caveat that individual member returns depend on many things, but this is our baseline figure 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 30k HP, so even if the VP is down to 70% that's still an effective vote from a 21k HP account.
We have been able to increase the MPATH market sale price to 0.57 HIVE, and the buy-back at 0.47 HIVE, as the ABV has finally increased to above our starting price. I also think this wider spread has motivated more traders to buy and sell MPATHs. Once I start to see it is flattening out, then I'll narrow the spread to perhaps 5 cents. I shall do this when we reach a price of 0.60 HIVE and then let the buyback price increase organically from 50 to 55 cents.
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.
Have a good week!
The MPATH headline figures are:
MPATH tokens active = 39,340 Voting HP = 39,200
HP in MPATH = 19,045 Other HIVE = 620 Total HIVE = 19,665
MPATH ABV = 0.47 HIVE
Estimated Earnings = 7.68 HIVE per 1000 MPATH = 40.7% APR (7.68 = 1.47 income + 6.01 votes) Total MPATH Distribution = 58.0 HIVE = 101.0 MPATH tokens (at 0.57 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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