Second month, second monthly report!
Days and weeks keep stacking, same as our HP.
Minted PWR over time keeps going although APR has already been reduced from 20% down to 16%. This is happening mainly because the HP delegation into @empo.voter kept growing over time (+700K Hive power delegated now up from ~500K from a month ago).
I think this is happening as more people realise that this delegation option exists and also as the liquidity pool becomes stronger.
- While writing those lines the circulating supply of $PWR is composed of ~25.000 tokens.
This morning I minted 20K more tokens (sitting at @empo.issuer) which will serve as a buffer for new emissions over the coming months (currently at 700K HP delegation emissions are about ~9300 PWR monthly approx (~311 PWR daily). All numbers remaining equal, this should last about 2-3 months).
- Hive Power on @vventures grew up to 1600 Hive during this previous month and current power-down from @empo.voter is at 450 HIVE/week (+6500 HP on empo.voter). Things only get better as the weekly power-down just gets bigger and bigger.
For the chart above I'm only counting the Hive powered up on @vventures . Which as expected it's starting slowly but eventually will be catching up faster with the PWR emissions.
Project Vision & Personal Opinion
While writing those lines the liquidity on the SWAP.HIVE-PWR liquidity pool sits at a very healthy level of 27K HIVE (although I own 54% of it since I'm adding non-stop all the PWR that I get).
For me it's a no-brainer since there's no 'counterparty risk' from my side.
For now PWR is an HIVE IOU (''I Owe You'') which I'll receive later. A HIVE derivative similar to 'liquid' Hive Power.
100% of all the HIVE coming from curation rewards on @empo.voter has been powered up so far, I haven't used anything yet for buybacks.
For now most (if not all) of the buying pressure is coming from me, I don't know for how long I will keep it. What I do know for sure is that the more time I give the project to keep accumulating, the better it will be in the long run.
First 6 months are the 'worst' from a financial perspective since the rewards aren't outpacing inflation yet. We just crossed the first 33,3%.
Many questions arise such as:
- At what point should I start with buybacks?
I had thought something along the lines of 'when the weekly powerdown reaches 500 HIVE, power up 400 and buyback 100' or something like that. I'll have to start somewhere, that's for sure.
- Long term (+6-12 months), dividend in HIVE or just increase the APR of the pool (with HIVE rewards)?
This one really haunts me. One option could be to maximise project buybacks up front to amplify liquidity, and eventually 'deactivate' the pool's APR to only pay dividends based on PWR. A mixed option is not out of the equation either, but I would like to leave room for the project to continue to be able to power up.
In any case, I will find the answers. That's all for today. Greetings to all of you who have taken the time to read this far and have a good weekend.
Once again thanks to the HIVE delegators for making the idea of this project possible.
-empo.
