The Math of It All & Share Sales Start Tomorrow!

in minnowbuilder •  2 months ago

einstein-153422_1280.png

I'm one of those people who get math and because of this I've been told I'm horrible and explaining it. So I'm trying to take a different approach here, hopefully it works.

Before getting into the math, remember to start each share will cost 1 Steem or 2 SteemPower in delegation. The share purchased with Steem will increase in value over time and participate in the account growth.

Value of 1 SP Per Day

Each day as of writing 1 SteemPower will get you 0.0006045 per 100% vote at 100% voting power per day. Arrived at this by taking the value of a 100,000sp 100% vote being $5.92. Divide the $5.92 by 100,000 to get the per share vote value.

Total SteemPower1 Self Vote Per Day Value2 Self Vote Per Day Value1 Vote from @minnowbuilder value
10.00005920.00011840.000296
100.0005920.0011840.00296
250.001480.002960.0074
500.002960.005920.0148
1000.005920.011840.0296

In the above chart you can see that per Steem you send to @minnowbuilder to be powered up you will get a 5x larger vote per day then if you write 1 post and self vote it each day. Or you will get 2.5x larger vote if you self vote twice per day.

Now what if you don't post daily, but only upvote your post and no comments? Well then the above chart still applies exactly as you will be self voting 1 time to the same 1 vote from @minnowbuilder.

What about people who post less often, but also upvote their comments? Well the math gets trickier to explain. Lets look at 1 example and then you can play with it yourself. If you post 3 times per week and self upvote @ 100% 11 other times for a total of 14 self votes at 100% you will have a 20% self vote rate. Total value of those 14 votes per SP is 0.0008288 and the 3 votes from @minnowbuilder would be worth 0.000888 which all things considered is pretty much exactly the same.

Your vote increases in value

Don't forget that the @minnowbuilder account will grow in value outside of share sales. The earnings from posts will be used to add value to shareholders mainly in the form of powering up. Each time we power up the value of each share increases as does the value of the vote.

Don't forget in the end you still own your shares in MinnowBuilder. If you want to stop getting daily upvotes at some point in time you will be able to withdraw your funds including account growth less a 10% processing fee.

But I want to delegate SP instead of sending Steem

The math for Delegation is half as good as sending Steem and purchasing your share. But we understand not everyone has liquid Steem to send, but want to start helping build minnows right away. Here is the same chart from above, but assuming you send 2 delegated Steem.

Total SteemPower1 Self Vote Per Day Value2 Self Vote Per Day Value1 Vote from @minnowbuilder value
20.00011840.00023680.000296
200.0011840.0023680.00296
500.002960.005920.0074
1000.005920.011840.0148
2000.011840.023680.0296

As you can see even if you self vote twice per day the math still works in your favor for being profitable by using @minnowbuilder.

Now it's important to note that while you don't get to take the account growth with you from delegated shares of MinnowBuilder you will still get a growing vote over time as the account grows. So your earning will increase over time.

Current Added Value

The @minnowbuilder account already has over 74 SBI shares which will give a boost to each post the account makes. It also already has SP along with post earning that will be coming in. This all is a bonus to those who buy in during the first or second round sales.

The First and Second round the price is fixed at 1 Steem or 2 SP per share. Once these 2 rounds close the price will adjust based on the total value of the account divided by the total shares.

The reason for the increasing price is so the vote value doesn't ever go down due to selling more shares. If we kept the price fixed at 1 steem the value of the current share owners would be diluted.

But wait, there's More!

Don't forget the real reason for @minnowbuilder it to build a real middle class of steemians 1 minnow at a time. Well actually the goal will be to have 10-12 minnow trainees in each of the 6 accounts at all times. So we will be helping 60+ steemians on their path to becoming minnows with daily 100% upvotes. Each of the steemians that are in this program will be found by the @pifc team.

Being able to help accounts growth from as little as 15sp (owned) to become minnows by going from level to level will help steemit not only keep more talented creators of content, but it will also make attracting new talent easier. This hopefully is a partial solution to the massive turnover issues that steemit currently has and you can be part of it.

Share Sales Start Tomorrow!

We will launch the official sale of shares in less then 24 hours.

The sale of shares will last for 7 days and then close. We will take 1 week to review how everything is running before opening up a new sale round. Currently the process will be to add people to the autovote list at the end of the week after all sales are complete, but if time permits we will add some earlier to help add value.

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Great!

@knircky read this and this

I need to write a much more concise FAQ in the next couple days before we launch @minnowbuilder2 sales. Plan to launch next Monday.

I have 5 STEEM reserved for you... but if you're starting with 6 small accounts, what does that mean? That only those 6 accounts will be able to buy some shares tomorrow?

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Anyone can purchase shares, the community building 50% of the upvote is for the under 500sp minnows in training. I'll need to reread what I wrote last night and maybe make an edit or two tonight. For now I am running late to get to work.

It will take a lot of people to sell out the shares needed to make this program work top to bottom.

You know I will have something to put in. Will watch out for the post tomorrow.

The main sale is for 7 days but this sale is for level one only. We want to fill each level with 1000 shares each. This will get the program off the ground. After this we will open up each level in turn and add more shares.
The first goal is 1000 shares per level
Then fill each level to 5000 shares.
We may increase the amount of shares per level
Eg
L1 5000shares
l2 6000shares. And so on.

But this is early days. The hope is to get the minnowbuilder project up and running to prove the theory. Then expand to speed up the progress of our minnows. (We are looking for current participants as well as new comers)
Then we have taked about the possibility of dolphin builder but for now lets take it onw step at a time

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just to make sure I have my facts straight. your involved in this also. If so would you say your the developer

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I have been working with @thedarkhorse on this project.

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You did great work. it came out great. I can't thank you enough. You touch so many people and they have no idea.

Thanks for posting all these explanations this week. I've been following along and reading, am ready to put my STM in, and am very interested to see how this all plays out!
🍌

I hope i earn enough before the window closes. at least 5steem would get me 5units. This is an interesting initiative, will love to see it blossom.

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It is incredible thought, The calculation is a bit confusing me, but I will support it as I can to see this community growing up faster.

So if someone sends you 10 STEEM to join, do you provide ongoing reports on the number of share people have? And how do they get those back if they want them?

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Okay, I found the answer to the second question. I'm curious, though, how the growth of the shares works. Is it based on market dynamics? Does it go up with the price of STEEM? Or based on how many people have bought shares in the pool?

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Everything is based on the 10 votes at 100% voting power that the account has each day. There are 2 pools each with 500% total votes. The pool for the share owners is split among them all based on percentage of ownership. There is a spreadsheet that we are working on, but think it's ready to be viewed at this point.

https://docs.google.com/spreadsheets/d/1n29RsnzJl5TWPENDcASrRxsS0K7tYdcF7JOsa6ce7Ac/edit?usp=sharing

You will see the math of things, but understand it's not up to date with current shares purchased yet.

The key is that as the total value of the account increases in terms of owned SP (can't control fiat values) the SP value of those who own shares from sending steem will see their value increase. Future share sale rounds will be at a higher price to reflect the actual value of each share. So if down the road we have 4000 shares and account value is at 5000sp then each share is worth 1.25 steem at that point and the new buying round would be at this price.

The reason for the increasing price is to avoid any loss to current shareholders when new shares are sold. If there was the same situation of 4000 share and 5000sp and we sold 1000 more shares it would be 5000 shares for 6000sp and the share value would now only be 1.2sp per share meaning the vote values would decrease for the previous owner by us selling new shares.

Now as for the reports, besides the spreadsheet I plan to post weekly with the current status of the account. This will include how many manual votes were needed during the week to use all of the voting power. We will naturally vote this post and others that might be needed first as it helps all of those in the group. But we are also thinking things like random large upvotes as a bonus for share owners when there is excess Voting power.

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Cool. I understand all of that. So if someone was ready to get their SP back, how do they do that? How do they request to cash out?

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Oh, nevermind. It's on the spreadsheet. I had forgot that I saw this on the other blog post. It all looks good.

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It's a lot to take in being a new program with a lot of moving parts. Glad you found it. Thanks for asking all your questions up front.

Now I really need a translation tools to understand the whole things😂 hold on.. I 'll be right back

Okay I am in for this I like these upvote plans.