Bigger token burns initiated
A couple of weeks back, we have redefined the objectives for the CTPSB token and the aim is very clear: increase the token value and the APR of CTPSB.
Most of the time, the project was burning about 0.7 CTPSB tokens per week. This was a small contribution to pushing the token value up. We decided to increase this rate and from now on, we will burn 2 CTPSB token per week (=~ 7 Hive) until we don't have the funds to do so anymore. This will give a slight push to the token on a regular basis and help the APR to climb. It's a small effect that accumulates its effect over time.
The effect of burning tokens
Since the token burns have no direct influence on the hive power of the account, mathematically speaking, each burn has a direct effect on the token value.
Let's say we have 2000 tokens in circulation and 10'000 HP backing it (this are not the correct numbers it's just for demonstration purposes). The token value would be 10'000 / 2000 = 5. Now let's say we burn two tokens. Now we still have 10'000 HP but only 1998 tokens. The token value would now be the following: 10'000 / 1998 = 5.005. This means that this small burn gave an extra value to all the other tokens. It's the same process with CTPSB simply with other numbers. The effect is a bit smaller because there are more tokens in circulation.
Doing these burns on a regular weekly basis is actually cumulating the effect. Also what is important to understand is that the return of the HP remains the same, so the increase of Hive power is also getting bigger per token when there are less tokens in circulation.
The numbers of this week
| Assets | Amount | Increase over last week |
|---|---|---|
| Hive Power | 32972 | +88 |
| Tokens in circulation | 9448.4 | -2 |
| Burnt tokens | 2050 | +2 |
| Token value | 3.49 | +0.01 |
| APR | 13.5% | +0% |
Learn more about the CTP Swarm Booster:
A project run by @liotes
And these token will be purchased from Hive-Engine?
The tokens are actually earned through a liquidity position in the pool LEN:LENM. The ctpsb.pal (the burn account of the project) account gets daily rewards in CTPSB, swap.btc and LEN tokens. These rewards are used for burning. Also the same account delegates HP to liotes.voter for which it gets daily interest payments that are used to purchase CTPSB on the market.
Its a good short term move. Burn more tokens till the account has excess funds.
I also have a share in LEN:LENM pool through my curation account (myupvote2u).
!BBH
!PIZZA
!ALIVE
!CTP
Over the last weeks, we have accumulated quite some rewards and now we burn a bit more than what comes in until we are even again. After that we will probably burn again around 0.7 CTPSB per week.
Great job!
Thanks man!
Are the funds for burning the tokens gathered from the author rewards? Or are they gotten from powering down the account over time when funds run out?
The funds are gathered from the liquidity position LEN:LENM
the ctpsb.pal account is the second biggest liquidity provider and it gets daily rewards in CTPSB, swap.btc, LEN that are used to burn tokens. The same account also delegates its HP to liotes.voter and generates daily LEN dividends that are used to purchase tokens on the market to burn them.
Thanks for the update.
!BBH
!LOLZ
lolztoken.com
He goes under cover.
Credit: marshmellowman
@ctpsb, I sent you an $LOLZ on behalf of edgerik
(2/10)
Farm LOLZ tokens when you Delegate Hive or Hive Tokens.
Click to delegate: 10 - 20 - 50 - 100 HP
You are welcome!
$PIZZA slices delivered:
@imfarhad(2/5) tipped @ctpsb