Our weekly report for both delegators and token-holders of M.

Delegators have received their token distribution and token-holders see the price rise a significant amount.


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### M News

Income this week has been slightly down, due to two main reasons: the Hive yield itself seems to have dropped to about 24.5% gross for whales and little more than 12% APR for dolphins, with authors on half of this; there is also about half a week left of new rewards due to one large new delegation. I therefore hope that next week will be higher - I can see the daily numbers rising, just not reached its new plateau as yet.


To put our earnings into context, I see that Dlease rates are now at about 13.5% APR, and lower than this week's M yield of over 14%. 

We are dividing the DCity income into two equal portions, with some replenishing the capital and the rest paid out to our members and included in our distribution. At a rough estimate, this has contributed about 1.5% to our headline APR return, so about 10% of our income. Some economic changes are due within DCity, so I'd expect this to impact earnings, so shall monitor the situation.

Also, a reminder that the delegator percentage returns are calculated on the basis of the previous week's price, plus obviously the income we generated. It is also based on the proportion of our voting SP that comes from delegators rather than from our own capital. Now, to make this a bit easier we shall publish *two* values: one for delegators; the other for token-holders.

The third number is merely the product of the first two weekly percentage increases and gives the true value of the distribution to delegators; it gives the true profit for that week on the assumption that those distributed tokens are sold at the *new* price.

I hope that makes sense. Let's have a look at this week's numbers.

Our buyback price has increased from 0.902 to 0.904 HIVE, an increase of 0.222%, equivalent to 11.5% APR.
The sale price is now at 0.954 HIVE.

Our distribution to delegators is 0.280%, equivalent to 14.64% APR.

Hence, total value distributed to delegators, adjusted for the token price increase, is 14.67% APR equivalent.

That value is the distribution of tokens plus their increase in market price. Thus, I hope you can see that the third calculation is hardly necessary, but I also hope it has illuminated how such calculations are done.

In the ideal situation, as M was conceived, those three numbers would be almost identical, save possibly for the third or fourth decimal place. However, I can see that this M token is being largely used by delegators, with few sales of the token itself. It is therefore going back almost to the original MAPR model, before the tokenisation, and hence the income generated by the fund is balanced between delegators and maintaining the net asset value of the whole fund. 

My experience of third party tokens on Steem-Engine means this is a more prudent strategy for the long-term health, and wealth, of the M fund. It also leaves open the rare, but possible, decline in the token price should the assets held need to be devalued. This makes M a more flexible split-level fund where the income and capital are more loosely coupled. I imagine most members may not even notice, but for those who read these posts I hope this brief explanation illuminates the recent divergence between the income and token price increase as APR values.



### Hive News

As Hive started as a fork of Steem, and the economic model has not changed, it is worth comparing the two reward pools: Hive has some 875k HP, and now falling, whereas Steem has about 860k SP, and is rising slightly. 

Also, taking 1 million as our whale HP/SP, a Steem upvote is worth around 31% APR, and recently nudging lower, whereas a Hive upvote is worth about 24.5% APR and falling. Most users are still getting just above half of these numbers for their own upvotes due to the non-linear rewards curve, and then half again for just the author rewards. Both chains are flirting with the debt-ratio mechanism making such estimates more volatile. Hence, our returns of about 14-16% APR for this week is very good value for both delegators and token holders. Note also that SBD has pumped up so that author-rewards on Steem saw a peak of over 100% APR; this has since fallen to about 50% but remains higher than the vote yield based purely on SP. We shall see what happens as the debt-ratio exceeds its ceiling again.

Just to stress that these theoretical numbers are how the blockchain adjusts to changes in activity. They are not always commensurate to the opportunities available to actually generate such incomes. They remain relevant metrics as to the health of each ecosystem.


Have a fine week!


Any questions, please ask in the comments below or in our [public chatroom](https://discord.gg/yWmrVFC).

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