Introducing BuyBack & Burn Program for SEED + Initial approach on 'Management Fees'
Hello everyone,
As you might know, recently I talked about upcoming management fees on a recent post and how I'm personally against taking 'flat fees' as most investment funds do.
The main problem with this approach is this is a parasitic one and once the fund grows big enough, the interest from the operator goes to simply 'moving funds around' rather than generating a real profit. You wouldn't believe how many investment funds charge outrageous fees and they do the 'minimal work required to just stay in charge. You're the product, not the 'customer'.
A different approach is needed. And this is what I'm intending to do with SEED. Let me introduce the Buyback & Burn Program combined with the new 'Management Fees'. I believe it's a fair approach regarding the good work which I believe I'm doing.
New category: Protocol Controlled Value (or PCV).
(Yes, I'm being influenced heavily by Cubdefi for this one, the name is still provisional).
A new category (or segmentation for the funds whatever you want to call it) is being introduced today in the reports. The 'Protocol Controlled Value' is a number of funds allocated into diverse farms with the sole intention of getting an %APR for the fund itself.
Well, 'technically' we're not a protocol, but you get the point. More details:
- The amount added to this category will equal 5-10% of the overall portfolio. this will be allocated into different farms on BSC and/or other chains, getting the best possible %APR without sacrificing security.
That means that I won't go around YOLO'ing into scam farms for an absurd APR, I'll focus mainly on CubDefi Farms and PCv2 farms. CUB/BUSD, CUB/BNB, BNB/BUSD, ETH/BNB, and these kinds of farm.
With the corresponding rewards, I will do the following:
- 50% of the farming rewards will be transformed into HIVE and I'll set up buy limit orders for SEED (from the @seed-treasury account).
All the SEED bought by this means, will be permanently removed from the supply (sent no @null).
- 50% of the farming rewards will be paid to the fund operator (@empoderat).
Key Dynamics & Implications
Maybe 50% from the farming rewards may seem like a lot, but think about it for a moment.
No 'static' fees are being applied on ALL of the funds. Instead, only 5% of the portfolio is being used as the necessary tool to generate the corresponding rewards.
As the value of the treasury grows, does this 5%. This goes both ways;
=> Higher payment with growing portfolio & higher SEED price
=> Lesser payment with decreasing portfolio value & lower SEED price
=> Interest of holders & operator alligned.
In case of a shrinking portfolio and this category exceeding the 5-10% range, funds are being moved out.
As time passes, more and more HIVE will be stacked into the buy side, creating a higher price floor... with the difference that if this buy wall scoops some SEED, this tokens are effectively out of circulation.
Wen Empo, Wen?
The program is already working behind the scenes.
- A new wallet has been created and roughly the 6% of the portfolio has been allocated. 17500 CUB and 10500 BUSD are already collecting rewards.
However, the movements from this wallet will be done monthly (and compounded every week; p.e. collecting CUB and allocating it into the Kingdom, etc).
The Buyback & Burn will start when the remaining 3,5K SEED being sold on the 25th are full released (full circulating supply).
in practise, this means that the first limit orders for SEED on hive Engine will be placed in the last week of December (I'm giving the farm a bit of a buffer to start accumulating).
This is all for today. You know what? We keep mooning! Currently every SEED (with 96,5K supply) is worth roughly 3,7$ Damn!
90% of blogging rewards paid to @seed-treasury.
10% of blogging rewards paid to @edje (since he provided valuable feedback in blackboard time).
Remember you can follow the portfolio in real-time here:
https://cointracking.info/portfolio/seedtreasury
You can join us on Telegram and follow me on Twitter.
Posted Using LeoFinance Beta
"You wouldn't believe how many investment funds charge outrageous fees and they do the 'minimal work required to just stay in charge. You're the product, not the 'customer'."
Of course most funds believe it!
I've seen funds lose 10 years in a row and keep going. Charging your commissions of course. You know, it's all the market's fault and they are the best at their job.
!PIZZA
I checked the other day. 0,25% yearly (regardless of profits/losses) 1% on dividends?
they're mad. Not to mention the hidden fees they generate buying/selling their own shitty products to themselves.
Well, let's not talk about the pension funds, that is the bomb. And then when you withdraw them, to be taxed as income from work in case they had not stolen enough from you.
Check out what Hedge Funds charge. Their 2/20 program is very lucrative for them. That is why there are so many hedge fund billionaires. I wonder how many billionaires they create, outside of themselves.
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Only in extreme circumstances with very risky portfolios setups... and If that's the case, it's a ''me first, you later'' approach
Fuck me in the ass now!
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Lol. Being rug pulled and poked at the same time.
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That is very Greek of you.
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That's racist!
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Sometimes, I think someone else is taking over your keyboard to make fun of you, but remembering that only your wife is working, I think you just got bored.
Have some !PIZZA and some !BEER
Posted Using LeoFinance Beta
That sounds good. Keep up the great job, my friend
Posted Using LeoFinance Beta
Thx :)
I think it's nice. So the holder we hold, the higher the value of SEED in the future. So only the farming profits are used to buy back SEED right?
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Exactly. Nothing from the fund is being taken out. Only the newly minted farming rewards
compound²
@empoderat! The Hive.Pizza team manually curated this post.
PIZZA Holders sent $PIZZA tips in this post's comments:
yeckingo1 tipped empoderat (x1)
@alexvan(2/10) tipped @empoderat (x1)
eirik tipped empoderat (x1)
alexvan tipped trumpman (x1)
You can now send $PIZZA tips in Discord via tip.cc!
Happy with that as not thinking about tomorrow or next month but a few years down the line. If we could over time remove 10% that means we are 10% more valuable which is a win win.
Posted Using LeoFinance Beta
I'm more excited about SEED as a project collecting HIVE and locking them out. Soon or later we'll have to get involved (more) in the Hive ecosystem.
However, I'm not a politics man... I prefer to just 'keep doing'.
Works for me. I like that all are aligned and not opposing each other. You are right, when interests get misaligned that is when problems start.
The track record is tremendous so I dont have any reason to doubt the proposal you put forth. I am good with it.
Posted Using LeoFinance Beta
Note that we can always twist things over time :) (which will probably happen).
I like the way you want to do this, it is very clever. I am happy to see your work being rewarded and the use of some of this investment to buy back and burn will create more value for the token holders.
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Glad to see you're finding it as a good approach. It could be even more complicated if needed!
It all works for me. Crazy returns should be rewarded somewhere I'm thinking and you've done everything you can to make it as fair as possible. Just like it's never a bad thing to take a profit, it's certainly not unfair for you to get paid for your work, and this looks more than fair to me.
Quick question on the 25th: are we sending you HIVE and then you're selling it for the cash? So if Hive goes to $2 we'd need to send in 200 HIVE for 100 SEED (just to make numbers easy)?
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thx. seriously.
NOPE! The remaining 3500 SEED will be listed for sale directly on Hive Engine for 4$ or slightly more (Hive equivalent). No need to send anything.
I'll probably release a post explaining it a bit better if needed.
Ok. Thanks for clarifying that. I'm sure you probably said it somewhere already but it obviously didn't register with me.
Posted Using LeoFinance Beta
Smart. This is the most easy-to-manage system IMO possible. No math. No spreadsheets, no high water mark system.
i really like it :)
That was my intention. Not overcomplicate things and get something that works.
We'll see how it affects SEED over time :)
GM!
I bought I to the first round because I wanted to let you run the money in the way that you think works best.
I'll happily leave my seed sitting there and see where it all goes from here. Trust the process.
Thx :)
I like the way you think. Proportional fees with performance. So rare to find this without a fixed fee somewhere.
The 'real' value is in holding SEED (which I do). The fees are only an extra from my own side of things.
!PIZZA
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I'm all for this. We are already seeing great gains without this in place. There is no reason to believe those gains won't continue if this new venture is used to give you some kind of return. Plus we will be burning so that is going to raise the value too. It seems like a no-brainer to me.
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In the end, it's a very simple (yet effective) way to compliment what we already built :)
thx as always for your feedback bozz. I always appreciate it a lot.
No problem. I still don't understand all of the in's and out's of this project, but I am glad that I have a stake in it and I trust your guidance and judgement.
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You are doing a pretty decent job with this project, so why not get paid. The way you do it, also increases the value for everyone involved, so I think it is a real nice approach.
Already have the alarm set for Thursday!
!BEER & !PIZZA till then
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Perfect, more reasons to buy the new tokens soon !
Unfortunately, that will also make less tokens for us to buy on the market :')
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