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This post is not financial advice
How am I going to do that?
First off I pre funded the account with some HP, PIXYDUST and HSBIDAO. The bot is also in the LP which means it gets a portion of the LP rewards in addition to earning HSBIDAO divs for holding tokens.
It is pre funded with plenty of both tokens to get things rolling, likely a year or more's worth. So what happens if 1.The year ends. 2. More people start using the bot and the amount of tips distributed goes up?
The first priority is figuring out how much HSBIDAO to hold /put in the LP so that the divs are equal to or greater than the outgoing tips. This will take a while to stabilize because I will need to have an average amount of tokens that are distributed. The bot is too young for that so the next few weeks/month are mainly just observational.
Once I reach the point where the bot itself is making enough HSBIDAO to fund the tip distributions then I will focus on PIXYDUST tokens. So how do I plan to do that?
Well the bot is earning a little from curation. Right now between curation and HIVE interest it is gaining enough that I think, at least at the start, it will gain enough HP to back future token distributions, at least partially.
Current stats on curation is the account is earning 1.11 HP every 30 days right now. That's not a lot but it is more than 2 PIXYDUST tokens. That adds up.
There is also LP rewards. The LP now pays out PIXYDUST tokens as well as others.Obviously I will simply use the PIXYDUST the account receives from the LP first. This also means that once there is a surplus of HSBIDAO coming in through divs I will also be increasing holdings in the LP.
The tip bot will sell /swap tokens (mostly GLITTER and THREE) it receives from the LP and also may sell tokens from curation, and either power up or directly buy the PIXYDUST tokens from this account or the LP. I will also look at monthly curation and either transfer or mint an equivalent of PIXYDUST tokens to replenish the pool if need be.
I don't know exactly how long this will take. The more popular the bot is the longer it will take however the account has had a head start in terms of curation, holding HSBIDAO tokens and the LP. It is already earning, it is not earning enough yet to be completely self sufficient but is pretty damn close.
The LP holdings also can act as a back up source of both tokens. If for whatever reason there is a need for more tokens than I can currently buy from the tip bot account it will simply remove some LP holdings. I don't anticipate this happening often if at all. I will transfer some from this account before that happens.
Why is this important? It is and isn't important. The tokens are already backed by the main PIXYDUST account and having the tip bot itself be self sufficient is not necessary. However it makes things easier for me if I know it's basically replenishing itself and it adds another layer of sustainability to the program in general.
