Hello, it is time for Eddie Earner to release a mining token. Done roll your eyes at me, I've been thinking about it from before it was popular but never get round to it. The benefits of having a miner are many and contrary to proper believe a project does need to be a tribe to run a mining token. Any project can create and operate a mining token by using scotbot if they have token worth mining.
Mine EDS tokens
Brief description of EDS tokens
EDS tokens are the flagship token of @eddie-earner, a project created and operated by @silverstackeruk on behalf of SPinvest. EDS tokens are inflation-proof HIVE income tokens based on a POH (proof of holding) model that remains pegged to 1 HIVE. Starting around 6 months ago, we launched offering a weekly HIVE income of 12% to EDS tokens holders which has since grown to 13.2%. Each week we earn more than we pay out and reinvest the extra to grow the next payout. Think of it like earning 20% on money in the bank and withdrawing 12% of the interest earned and compounding the other 8% to increase your next payment. This is how EDS can continually increase weekly income payments to EDS token holders. It's a simple set up and works well.
There are currently 20,000 EDS in circulation and 480,000 in the mint looking to be released. The plan was never to directly sell many EDS tokens but instead attach them to something and issue them as rewards. There are many ways to do this and it's better to get it right the first time so I've not been in any rush.
Well done to those that have been buying underpriced EDS tokens from hive-engine and congrats to the EDS tokens holders that have held from prelaunch. Your weekly payouts might increase soon.
The current State of EDS
Based on EDS's current mode without miners, the table below shows the minimum projected amounts EDS will produce based on HIVE POWER only. Content, airdrops and other rewards are not included The table below is the bare minimum. Starting on week 1, you see the APY is 13.20% meaning if you hold 1000 EDS tokens, you will receive 132 HIVE over the course of a year. I project 19% earnings on HP as an easy target to hit and use this figure as base.
We can see that EDS HIVE income payouts will increase by around 1%. Please remember these projections do not include content rewards are tribe tokens. Here's is a view of how EDS will perform over the next 50 years without miners.
Growth is slow but consistent and the chart above shows the EDS token model delivers exactly what it had promised from day 1. If you have 1000 EDS tokens and you are still HODLing in 50 years, you can expect to earn a bare minimum of 4358.50 HIVE per year in EDS income payments. Assuming HIVE is $100 by then, that's $435,800 per year. Even at $10, its $43,000. I wonder what a loaf of bread will cost in 50 years? $30?
Introducing EDSM tokens
Before I start, people have a really weird thing were they value investments on the price of the tokens and not the ROI they produce. EDS miners (EDSM) will be sold at a price of 10 HIVE each and each one will mine 2 EDS tokens per year to provide a 20% ROI. I could sell them for 1 HIVE each with each mining 0.2 EDS tokens per year and have 10 times more to sell but nah. Please do not tell me the price of EDSM tokens are expensive at 10 HIVE when the ROI is dependent on the amount invested. If you would like to invest 1 HIVE, buy 0.1 EDSM when they are released, it's the same thing really.
EDS miners (EDSM) in a nutshell
- Each EDS miner (EDSM) costs 10 HIVE
- Each EDSM token when staked will mint 2 EDS token per year
- Mining rewards will be issued at least every 12 hours
- Mintage - Undecided
- Unstaking EDSM tokens will take 1 week
How introducing miners will affect EDS ROI
Below are 4 tables the same as the one above but showing how the ROI for EDS tokens changes depending on how many miners are created and sold. In the examples below, we look at projected APY's based on creating and selling 1000 Miners, 2500 Miners, 5000 Miners and 10,000 Miners. Again, these projections are based on HIVE POWER balance only
- Selling 1000 EDSM @ 10 HIVE = Beginner Level
- 2 draws per day/20 winners each draw/0.136 EDS per prize
- Each miner has 2% to win per draw (twice daily, 4%)
- We can see the instant increase in yearly APY for EDS tokens jump to 19%. The APY takes 6 years to decrease to 18% where its reverses and starts to slowly increase.
- After 50 years of inflation from mining rewards, there would still only be 120,041 EDS in circulation.
- Selling 2500 EDSM @ 10 HIVE Basic Level
- 3 Payouts per day/20 winners each draw/0.228 EDS per prize
- Each miner has 0.8% to win per draw (3 draws daily, 2.4%)
- We can see the instant increase in yearly APY for EDS tokens jump to 28%. The APY drops for 10 years down to 16% before it reverses and starts to steadily increase each year
- After 50 years of inflation from mining rewards, there would be 270,102 EDS in circulation.
- Selling 5000 EDSM @ 10 HIVE Intermediate Level
- 6 Payouts per day/20 winners each draw/0.228 EDS per prize
- Each miner has 0.4% to win per draw (6 draws daily, 2.4%)
- We can see the instant increase in yearly APY for EDS tokens jump to 42%. The APY drops for 15 years down to 15% before it reverses and starts to increase each year
- After 48 years of inflation from mining rewards, all 500,000 EDS tokens would be minted, issues and miners would become obsolete.
- Selling 10,000 EDSM @ 10 HIVE - Advanced/God Level
- 12 Payouts per day/125 winners each draw/0.228 EDS per prize
- Each miner has 0.2% to win per draw (12 draws daily, 2.4%)
- We can see the instant increase in yearly APY for EDS tokens jump to 71%. The APY drops for 15 years down to 13% before it reverses and starts to increase each year
- After 28 years of inflation from mining rewards, all 500,000 EDS tokens would be minted, issues and miners would become obsolete.
Time to push @eddie-earner to phase 2
I've been saying for a long time, I'll do something with the @eddie-earner account but I've not known what. Capping the token at 20,000 was part plan/part hard to sell more, haha. The idea was always to create something from the @eddie-earner account that was 100% HIVE focused, no tribe tokens, LP's, gaming, etc, just 100% HIVE POWER. I have thought up and run the numbers for many ideas including simple tokens games, lotto's, earning from off HIVE, NFT'S and much more but I guess that's part of EDS's USP to be a HIVE pure investment token, not tainted by second/third layer tokens, all HIVE POWER. I think miners that mint new EDS tokens will be something people will like.
- Liquidity would be provided to miners looking to cash out on request if not available on the exchange at a 1 EDS to 1 HIVEp ratio.
Rundown
- EDS miner (EDSM) tokens for 10 HIVE each
- Each miner mints 2 EDS per year into circulation for decades
Either
- Hold EDS tokens to earn a HIVE income on predicated rates above
- Sell on the exchange for 1 HIVEp
. - Mining rewards paid twice daily
- When EDS miners??
...start saving
Feedback is welcome
Thank you for reading through this post. If you spot something that looks off with my numbers, please let me know in the comments. If you have enjoyed this post please consider dropping a big dirty 100% upvote and sharing this with your follows with hitting the repost bottom.