In this post I announce that we will now be paying out ALIVEM as rewards for delegating ALIVE tokens to @aliveandthriving, why we do this and how it will work, enjoy!
Made in Desygner, photo by Erik Gustafsson
Hi there and welcome to my blog, my name is Erik Gustafsson and I go by the handle @flaxz.
Introducing ALIVEM Rewards - For Delegating ALIVE To @aliveandthriving
In our last payouts to delegators for @youarealive we gave a few details about this change, You Are Alive - Weekly Payouts To Delegators #21.
So let's start with why we are introducing rewards in ALIVEM to Alive Power delegators for @aliveandthriving, why is it needed?
It really boils down to that @aliveandthriving is staking 10% of it's ALIVE earnings while paying out 90% to Hive Power delegators for @youarealive, and to keep that sustainable the ALIVE Voting Power of @aliveandthriving needs to keep increasing at a much faster pace in order to earn enough curation rewards to keep paying out a good enough APR on Hive Power delegation.
Up until now @aliveandthriving has relied on pro bono delegations of Alive Power, but with this change Alive Power delegations will be rewarded, and that means that we can keep growing the ALIVE Voting Power on @aliveandthriving much faster, and sustain earnings of ALIVE to pay out to Hive Power delegators for @youarealive.
There is also a good reason for rewarding this with a payout in ALIVEM, and as we explained in the post linked above ALIVEM will be paid out staked to Alive Power delegators, and that is to add another way to reward staking of ALIVE tokens, a passive income way where you can just keep staking ALIVE and delegate to @aliveandthriving and see it grow over time, rather than staking ALIVEM and selling ALIVE.
These rewards in ALIVEM will not in any way forego our pricing strategy where we double the sell price for every 1000 ALIVEM we put up on the market, currently 10 Hive per ALIVEM, this is just another way to buy them as they are bought from the value of the ALIVE earnings on @aliveandthriving, but with this way you don't have to spend Hive to buy them but you can leverage your ALIVE stake to buy them.
The value of ALIVE that we will use for the ALIVEM rewards is the Highest Bid on the market, this keeps market volatility from influencing the payouts, plus it gives Alive Power delegators incentive to support our bottom line with standing buy orders for ALIVE since the higher the Highest Bid is the more ALIVEM they will earn in rewards.
We have touched on a bit of this already, but here I will lay it out in order.
The ALIVE that these rewards will be based on is the ALIVE of the payouts to Hive Power delegators for @youarealive, plus the 10% ALIVE that we stake on @aliveandthriving.
The value of these ALIVE tokens in Hive is based on Highest Bid at the time of the payout.
The value of ALIVEM is what we sell them for at the time of the payout according to our pricing strategy.
Every day we take a snapshot of delegated ALIVE to @aliveandthriving, and we then use that to calculate the weekly average delegation for each delegator, and the percentage of total ALIVE delegated is then what determines how much of the rewards each account earns.
As ALIVEM is a high value token with only 1 decimal we will also use a weekly rollover, which means there is no lower limit to how much ALIVE you can delegate to @aliveandthriving, if your rewards are below the threshold to pay out they will just accumulate from one week to the next until it's big enough to be paid out.
This is how it will work, and first payout of ALIVEM will take place on our next payout to delegators for @youarealive, so less than a week away now.
Calculated Example Of ALIVEM Rewards
So to take an example of how much ALIVEM we will be rewarding, then let us use the numbers from our last payout to HP delegators from yesterday in the post linked above.
We had an ALIVE payout of 913.1610 ALIVE tokens, and we staked 101.4624 ALIVE tokens, giving a total of 1014.6234 ALIVE tokens.
Highest Bid of ALIVE was 0.02004999 Hive per ALIVE, giving them a value of 20.343189 Hive.
Our current sell price of ALIVEM is 10 Hive, which gives us 2,0343189 ALIVEM in rewards to ALIVE delegators.
Current ALIVE delegations to @aliveandthriving is 59600 ALIVE, and that means an APR of (((1014.6234/7)x365)/59600)x100 = 88.76% APR in ALIVE earnings on delegations, and in rewards to delegators given that we use the price of ALIVEM that we sell them for.
ALIVE rewards to ALIVEM stakeholders does vary a bit over time as it is based on an hourly lottery with 20 winners per hour, but over time that evens out, and the more ALIVEM you have staked the more even it is.
ALIVEM stakeholders are rewarded with 20% of our daily issue of ALIVE tokens, which is currently 15.823 ALIVE per hour, which gives us 379.752 ALIVE per 24 hours.
Currently there is 1022.1 ALIVEM staked, which gives us (379.752x365)/1022.1 = 132.2685 ALIVE mined per ALIVEM per year.
Now that gives us ((132.2685x0.02004999)/10)x100 = 26.51% APR on ALIVEM mining, given the price of ALIVE at the time of payout, and the price of ALIVEM that we sell them for.
Quite good numbers I think, they will vary over time though as prices change.
What do you think?
Thank you very much for reading this post and I hope you liked it, leave your thoughts in the coments below, and ...
This is my own personal opinion, do your own research before investing, and seek legal counsel if uncertain.