MAP Rewarder: MAPR Payouts to Delegators and Price Increase for Token-Holders for 28 September 2020 (18.4% APR)

accelerator (67)in Project HOPE • 4 years ago

Earn significant passive income with STEEM without locking SP by investing in MAPR tokens.

This week's distributed profits are 0.353%, equivalent to 18.4% APR and 20.2% APY.

This is higher than most individuals can earn from vesting their own STEEM.

There is a lot of information to get through today, so please read the News below very carefully.

General Info

Remember that MAPR has a unique distribution and pricing system. If you look at the MAPR tokens you, as delegator, have received today, multiply that number by the new official BUY Price and you get the same amount in STEEM as you would have done under the old system of just paying out STEEM transfers.

Token-holders receive no token distribution, unless they are also delegators. Their profit comes in the token price increase.

The added bonus is that if you don't sell this week's tokens, then next week their value will rise to at least the new BUY Price. This is how the token allows compounding of profits, for both delegators and token-holders.

Using the language of investment trusts, delegators hold "income" stakes where the "interest" is paid out in tokens, whereas token-holders have "capital" stakes where the profit is added to the token price.

A reminder that new delegations start to earn 2 days after the day of delegation. This means that the first week's payout will be lower than for a 7-day week. Also, as payouts are done on Mondays, delegating on a Saturday or Sunday will yield no distribution till the following week. This has always been in place and is to avoid people trying to game the distribution. The positive part is that there is no unstaking period for the tokens, merely the standard waiting time for undelegating.

MAPR: The Numbers

All these numbers relate to a 7-day period (Monday to Sunday) and calculated in STEEM per SP.

Value of Steem upvotes = APR 36.5% [1a], 20.8% [1b], 20.1% [1c]

Value of Steem author rewards payouts = APR 17.4% [2a], 9.9% [2b], 9.6% [2c]

Distributed MAPR payouts = 0.353% (APR 18.4%) [3]
Projected Compounded APY 20.2% [4]
Average APR 18.6% (26-weeks)

MAPR BUY Price: 1.1940 STEEM [5]
MAPR Price increase = +4.4% APR
MAPR SELL Price: 1.2220 STEEM [6]

[1] Theoretical maximum value of Steem upvotes, assuming 10 full upvotes at 100% power for 7 days, averaged over 7 days and expressed as an APR. This calculation was performed for an SP of 1 million STEEM to be as close as possible to linearity. Your own upvote will be somewhere between 50-100% of this value.
The values are now calculated for three levels of voting power: 1 million SP (a); 10,000 SP (b); and 1,000 SP (c).
[2] Theoretical value of Steem upvote author rewards, assuming 50% curation rewards, 50-50 split of post payouts and SBD print rate, averaged over 7 days and expressed as an APR. Your own author rewards will be somewhere between 50-100% of this value.
[3] MAP Rewarder distributed payout sent to delegators this week as tokens and the MAPR price adjusted to reflect this.
[4] Equivalent compounded yield as an APY for this week's distribution in [3]. We now have enough data to give a better historical picture of progress and have including a 26-week average to give a measure of medium-term returns.
[5] Our BUY price is the price you may sell your MAPR tokens such that their value in STEEM is the same as if this week's distribution was done by direct STEEM transfer.
[6] Our SELL price is about 1% above the BUY price.

Our MAPR distribution [3] is much higher than the average blockchain author rewards for most users [2b & 2c].

Profits will be paid today in the new MAPR tokens. The token buy-backs on Steem-Engine may need to wait a few hours for our power-down to take place.

MAPR News

The Steem blockchain has seen a significant drop in vote yield this last week. It had been around 40-42% APR for some 5 weeks but has now dropped to 36.5% [1a]. However, our own income has seen only a slight drop compared to last week, from 18.8% to 18.4%, so is still at the level of a whale author reward yield per SP - this is also almost double what the average user is getting from their own SP.

The main issue this week is about how low this will go. However, let us back out a bit and see that the yields have been extraordinarily high since about April - and kept on rising to peak in June. Before then, the Steem chain produced a fairly stable 20-22% yield on a whale vote for a couple of years, save for some blips during hardforks.

The author rewards used to be 75% of this value and then dropped to half during the EIP part of HF21. During this whole period, the MAPR fund has consistently yielded returns somewhere between a whale-author and a whale-upvote, and even if the blockchain yield changes then we hope to continue to do so in the future. The average user is now getting just below 10% [2b] so our returns remain significantly higher than what most people can get with their SP alone.

As mentioned last week, as the vast majority of token-holders are also delegators, I'm letting the token price slip so that we can return to a par on assets. Just to reiterate, we have very few meaningful thrid-party tokens left as so many have migrated. This has happened since the creation of our M token, which has not had to deal with similar devaluations. One positive thing is that we are slowly converting some BLURT into STEEM. This will help the MAPR fund in the medium term. This is not a reflection of the Blurt chain itself, but I really do not see the case to create another MAPR clone for now. I am using it and will reflect on whether some kind of fund can be created on there.

Anyway, I feel the weekly income remains healthy and if the token price needs to drift upwards more slowly then users are still getting a great return. Let us also not forget that the buy price started at just 1.0 STEEM, so we have seen a 20% rise in about a year, which is pretty much on target. Those tokens earnt a year ago are now worth 20% more too.

I now note that there is a small backlog of pending sales. This is a market and such sales are also an opportunity for buyers to accumulate some MAPR tokens that are much cheaper than our official sale price.

We shall continue to generate yields that are as high as we can given the economic model and in the hope that activity - voting rshares activity - will pick up further.

And finally, although our weekly returns are variable, here is a graph of how the token price has been performing since the MAPR token was launched. (Thanks to @gerber for the discord-bot.)

MAP Rewarder, without the token, has been in operation for some 30 months, so you can extrapolate back from that graph to get an idea of our returns to members. We celebrated 2 years of operations at the start of February.

Anyway, don't panic! We may need to flatten the curve slightly but, to be honest, this is the least of our worries.

See you next week!