Round 2 of the BUILDTEAM Auction Is Now Complete!

in buildteam •  last year

My $155 investment in BUILDTEAM tokens returned $110 in profits. :)

Last month, @buildteam announced their BUILDTEAM token on BitShares: [ANN] Launching the BUILDTEAM Token. They finished the second auction today which you can find out about here.

The Build Team is responsible for STEEM based-tools you've probably already used such as http://minnowbooster.net/, https://steemvoter.com/, and @steemsports. Instead of keeping all the STEEM profits for themselves, they decided to do something a little more fun and create a token called BUILDTEAM which they sell on BitShares and use to pay their team.

Every month, there's an open, three-day auction where every holder of BUILDTEAM tokens can send them back to the @buildteam BitShares account, and, based on the percentage each person sends, they will receive that percentage of the STEEM profits available that month.

This auction had 3,700 STEEM up for grabs. I heard about this after the first auction, so I went ahead and purchased 100 BUILDTEAM tokens at 10.2 BitShares each on August 10th. I bought a little more after that as well. I sent 100 BUILDTEAM tokens which ended up giving me 5.62% of the pool as you can see from this spreadsheet (my BitShares account name is luke-stokes).

Based on that, it looks like my $155 investment made me $110.72 in profits! Not bad at all. :)

I could also calculate this purely in terms of USD which would be $102 in profits (assuming the USD went directly to buying STEEM instead of buying BTS to buy BUILDTEAM to participate in the auction). The fluctuation of all the tokens involved makes this interesting (BST, STEEM, and BUILDTEAM).

There are so many interesting aspects to this project:

  1. Build Team is building real things in the STEEM ecosystem which are profitable.
  2. BitShares works well to create a token which can be exchanged for value if people believe it has value.
  3. This auction style becomes a sort of game. Not really as extreme as a prisoner's dilemma, but close enough to draw some parallels. If people bid too much, everyone bidding could end up losing value.
  4. It creates real demand for BUILDTEAM tokens which then gives them market value and a valuation for the BUILDTEAM holders.
  5. It enables fans of Build Team projects to share in the profits and invest in further development.

All in all, I think this is a pretty cool system. If the Build Team projects continue creating profits, then the auction pool amount will go up which could also create more demand for BUILDTEAM tokens. At the same time, as people like me talk about this more, then more people may participate in the auction in the future which could lower the returns for everyone.

Either way, it's pretty fun, and I enjoyed playing along. I still have 60 BUILDTEAM tokens I bought at 13.57 BTS each. Maybe I'll hold those for the next auction or even buy some more for October.

If you want to participate next time, you can purchase BUILDTEAM on OpenLedger. Follow @buildteam to stay in the loop for future auctions.

Congratulations to @thecryptodrive, @bulleth, and the entire Build Team crew for their second successful auction.

What do you think of Build Team and this idea of creating tokens to support STEEM development projects?


Luke Stokes is a father, husband, business owner, programmer, and voluntaryist who wants to help create a world we all want to live in. Visit UnderstandingBlockchainFreedom.com

I'm a Witness! Please vote for @lukestokes.mhth

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This is an interesting means of distributing profits. I'd like to see more things like this that encourage utilization of Bitshares. Most of the tokens on there are...a bit more dodgy than this.

Hey @lukestokes, you are legend man ... this post is amazing and really makes me feel proud of the team we have, thank you for your support.

PS... When are you joining our team? ;)

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Thanks. :)

I've still got my own company/team to keep me busy at FoxyCart. That said, I did have an idea I wanted to run by you. I'll hit you up in chat sometime.

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Cool hit me up on Discord, I've moved away from Steemit.chat.

Wow, this is great. I saw it too and glad that you took action and made positive ROI . This shows that our steemit plaform is full of unending opportunities and I will surely buy next time. Thanks for sharing my bud, upped-always.

In addition, I would like you to join the debate on my latest post about dangers of child pornography and sharing children pictures ...your constructive advise is needed....

Oh wow! I didn't know about this! I'm a fan of their services so this is definitely worth checking out. Thanks for sharing this, Luke!

Thanks for sharing your experience and I'm glad you enjoyed our auction! To me it's fascinating to see the BUILDTEAM / BTS market growing slowly over time, and helping out as a market maker which is something I don't get the chance to try often. Buying / selling on the market vs. participating in our auction reminds me a bit of the daily EOS auction. Ideally the auction price should converge to the market price each month (as it does everyday for EOS), but as we've seen this hasn't been the case so far, possibly due to a smaller number of traders. So far the disparity has been working to everyone's advantage.

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I was thinking the same thing! Many similarities to the EOS setup.

Just making sure I understand.

You basically buy the BUILDTEAM tokens, redeem as many as you wish one month and hope that you are returned a $ value of STEEM greater than the $ amount paid for the original BUILDTEAM tokens. All without knowing the overall profit share amount. Otherwise you can hold the BUILDTEAM token in hopes of appreication (which isn't much different than holding STEEM itself). Sounds like a complete gamble since there's no transparency of profit being created (or is there way to gauge it?).

Thanks!

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ok, I think I have some clarification. In the monthly announcement, they say what the "BuildToken General Fund" is. NOw, you don't know how many other ppl are going to bid for it (just b/c you have BuildTokens you aren't required to redeem them and also there's no inflation of the token).

If this becomes popular, then you COULD see more upside in the actual token price itself than redeeming them each month, but we'll see if/when that happens. With a limited supply of BuildTeam tokens, if everyone holds and you are the ONLY person to redeem, then you could (theoretically receive 100% of the BuildToken General Fund reward with a very small # of tokens redeemed. On the other hand, if everyone redeems (and the Fund is small) then you may lose value.

Did I make a mistake anywhere?

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maybe you could do a video on this? If I can get everything straight, I'll do one.

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Hey Ashe! Glad you saw this as I thought you might be interested. The total amount of STEEM available is made known once the auction starts. You can also track the transfers to the build team account as they happen on the blockchain to decide if it's worth it or not. In some ways, it's similar to the EOS auction. You could hold STEEM, but as my example shows, it was much more profitable (this time) to hold the BUILDTEAM tokens because they represent not just an increase in the value of STEEM, it also if the profits generated by the Build Team projects.

The only downside I see to this is it will remain a small amount. If someone tries to go in for a large amount, they will eat into their own profits, making it pointless.

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"The only downside I see to this is it will remain a small amount."

You mean the number of BUILDTEAM tokens redeemed will remain small, right? I find all of this so fascinating. Coudln't that be good because ppl will bid up the price of the BUILDTEAM tokens and only redeem just as many as they think will be needed?

I believe there's no inflation of build team tokens AND only the # of tokens redeemed each month are available for sale again, right?

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Why not delegate my SP to MinnowBooster and reinvest that SD in to BUILDTEAM tokens. Feels recursive.

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I mean the STEEM in the auction. It was 3,700 this last time. That limit will keep the amount of BUILDTEAM put in the auction low or people will begin losing money by sending too many. For example, if you make nice profits like I did on $155, you can't double that profit by investing $300 based on how the auction works. Your profits go down based on how many tokens are put into the auction.

It gave some nice profit as well :jew:

real good Post @lukestokes :) I've as well took part in the bidding and am very satisfied with the outcome :)

I'm really curious what else Buildteam will come up with in the next months.

dang nice job on making $110, good ROI! :)

BTW... you look exactly like my friend Joey! I did a double take when I saw your photo! LOL anyways random...

Hope you have a fantastic day.

Doing great work and one thing how can i forget to mention, you are working with very nice people @thecryptodrive Very humble person

Nice post. Thinking about joining the next auction. Very interesting.

Nice one luke
This wraps up the multiple angles this thing is working on really well.
I too participated this time - with only 38 Build tokens

A good profit!

Congrats, BUILDTEAM 😊

I am new to steemit, and still learning and like the way so many people pull together on many projects. good for you to share and help out.

I am still holding mine. I bought them below 10 BTS! The price is going crazy, every month it's higher!

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Nice! Yes, eventually a price equilibrium will be met between the various tokens involved.

This post is amazing

good post, i upvote yes
please help follow and upvote me yes.

I just covered MinnowBooster economy by @buildteam but didn't know about auction. Thanks for sharing your experience. I am going to participate next month.

greetings steemit friends. hopefully we can always share here.

thank you very much for sharing interesting and amazing information, it is an interesting means to share profits. I would like to see more of these things that encourage the utilization of Bitshares. Most of the tokens there are ,, let be the big lucih keutungan ..

Hi @lukestokes ! What you wrote here is really interesting, and the profit you made here so fast, too! You got your investment back within 1 month!

I did not know about it 6 months ago, and bought around 120 BT, however, I am really not sure how the payments each 1st and 16th of every month is calculated. This month stakeholders received around 30% less in steem than 15 days ago (the past payment).

When you get the chance, if you know how it works, I would be really interested to learn about it! I have been researching but could not find an explanation to this yet.

Thanks for your time and help.

Regards, @gold84

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Go ahead and jump into the Buildteam discord and ask for details from them. My understanding is the payouts are based on their profits and how many people are staking the token. I’ve wanted to buy more but no one wants to sell. I’ve definitely done very well, especially when you consider the increase in value of the token itself.

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Thanks for the information! On Bitshares Dex they are sold from 45 bts each to any number. What is a good price for you to buy more?

Regards, @gold84

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Asking “what is a good price” is kind of a silly question. Who knows? I don’t. I did recently buy some more though. It’s all risk and speculation. This token has been very good to me so far.

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@lukestokes when I asked about a good price, I meant a reasonable price for you to buy more, since you bought the first ones at a very low bts and low BT price. Sometimes its difficult to describe things when writting.

Regards, @gold84

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What I'm saying is I really don't know. I had a buy order in there for a long time that just never hit so I bought some at whatever the market price was at the time. Pricing this stuff is really, really difficult, and I usually can't defend my own decisions to myself, let alone other people. :)

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hehe yes! Absolutely. But I can say, many of your decisions have been good so far! SmartCash is doing well, and getting better as time passes. And not to talk about Steem and BTS, 2 of them you have been with for 2 years now. You are an early adopter and tech prepared to make better decisions than many other people. This is my belief, and always enjoy learning new things from you and your posts!

Regards, @gold84

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Thank you for your kind words. :)

I've just become familiar with @Steemit and the @BuildTeam. It's great to read of the success stories! Thanks for sharing this information! Congrats on the successful auction!