Hello, EDSers. We will launch EDSvote this coming Monday
EDSvote was announced last week in this post. In that post, I explained the basic idea of EDSvote, how it will work, the process from delegating HP to receiving weekly EDS payouts, etc.
In this post, we look more into the tokenomics of EDS and how EDSvote will affect EDSs APY depending on how much HP EDSvote receives in delegations. The overall goal for EDSvote is to mint and distribute EDS tokens while slowing down the EDS APY decline and speeding up the time it takes for the EDS APY to flip from declining to increasing. EDSvote is the perfect way to slowly mint new EDS into circulation while ensuring all minted EDS are backed and pegged to 1 HIVE each.
Here is how EDSvote works for delegators
What sort of APY will I get?
50% of the curation rewards earned by @eds-vote in a nutshell
The @eds-vote account will perform full power-downs of its curation earnings. 50% of these rewards will be used to mint new EDS tokens to distribute to @eds-vote delegators and the remaining 50% will be powered up to @eddie-earner to help increase income payments and add more sustainability to the EDS APY.
Curation on HIVE pays at an APY of 8-10% so @eds-vote will issue EDS tokens at a rate of 4-5% at an honest guess.
Im not going to BS here and say that is great but on the flip side, you still earn 2.9% on top of that from HP inflation and you'll be earning EDS each week that will not drop in value and pays out HIVE income payments equal to a 35% APY. You could also sell it each week for over-peg as there are a few buyers for EDS.
Lets look at my Projections for EDSvote
I had planned to show everything here but for each projection, there are 1304 lines of results and i dont think i could fit them all into a post so I thought it would be better to cherry-pick all the critical information and put them into charts to make it easier for you to digest.
I have done my projections in weeks and have looked out 25 years. The things i have looked at are...
- HP inflation compounding
- Basic EDS income based on 17% APY of the HP balance
- Curation rewards based on 8% APY of HP balance
- EDS minted from EDSM & EDSMM
- EDS minted from EDSvote
- Total EDS in circulation
- Income Pool
- Totals HIVE ins (income from HP balances)
- Total HIVE outs (Income poll, EDS miner and EDSvote rewards)
- HIVE POWER balance
- EDS profitability
- EDS APY
I looked at 6 different ranges of HP delegations to give a better idea of how we cant expect EDSvote to perform for EDS over the coming years.
- 50,000 HP
- 100,000 HP
- 150,000 HP
- 200,000 HP
- 250,000 HP
- 500,000 HP (in my dreams)
RUN TIME
First, we look at how long EDSvote can operate for depending on how much HP it receives as delegations.
We can see that when we receive less than 150k in HP delegations, EDSvote can operate for 20 years are more. Even if we receive 500k which is not possible, the 180k EDS tokens allocated will still last 8.5 years so i'd say we are good for EDS tokens and not running out anytime soon.
EDS PROFIT FLIP
This will happen next and is something I dont talk about that much. This is when EDS as a project goes from costing HIVE each week to profiting HIVE each week.
This cost was amended into the EDS model when EDS mienrs were launched and is expected. Each week, this cost is absorbed into the 68,000 unallocated HP balance that sits in the @eddie-earner account. Remember there are currently 34k EDS in circulation and there are 102k HP sitting in the wallet. To put that into perspective. EDS has 6.5 years' worth of HP in reserves to back EDS miner rewards.
So this flip is an important one for EDS as a project. This will happen before the EDS APY flip happens as it takes time to catch up.
We can see here that the amount of HP EDSvote receives plays a stronger role in how long its takes for EDS to flip. Ideally, if we are able to get over 100k in delegations and we can have this happen in just over 5 years.
You can see from 250k up, we would go into instant profitability because thecuration rewards we'd receive plus income from the @eddie-earner HP balance would be more than the amount of HIVE needed to make the weekly income payment and mint new EDS tokens. Remember, EDS miner rewards are set but our earning potential from HP is not.
EDS APY BOTTOM (FLIP)
These are the bottom APY's EDS will fall to depending on how much HP is delegated to EDSvote. After all these points, the APY will increase indefinitely after.
We can see the difference is big here between 50k and 500k. Personally, I think anything over 15% APY is good and low APYs could result in the opportunity to stack more before the APY flips and starts to increase. These numbers are all far away from the current EDS APY but we gotta take a few years of pain before we reap the fruits of our labour. I mean if we can even call 15-18% painful, haha.
EDS APY FLIP (YEARS)
We can see the projected EDS APY's above, lets look at the only question in crypto anyone really whats answered. WEN EDS APY flip?
As the amount increases by 50k each time, the amount of time it will take falls consistently with no big fall off anywhere. Anything under 200k which is realistic for us and we are looking at 10 years before this flip will take place.
10 years seems like a long time but if you factor in 10 years worth of EDSvote rewards and even EDS miners if you own only and you'll be sitting on a big pile of EDS tokens all earning you a weekly HIVE income.
I should note that these projections are based on minimal HIVE incomes from HP only. Projections do not include future content rewards, HIVE airdrops or other sources of income.
EDS APY after 25 YEARS
I projected out 25 years so we may as well have a look and see how the EDS APY will be performing for us based on the amount HP EDSvote receives. In most cases, all EDS tokens will be minted at this stage and we'll just be watching the APY's increase.
We see that 50k and 100k are not great. At these amounts, there would be excess EDS tokens from the 180,000 allocated and we'd raise HP in some way to issue them. This would not be the plan and a last resort thing.
At 200k HP which is not alot when we think over 25 years. If EDSvote attracts 4k of new HP delegation each year for 25 years, that's 200k after 25 years. we'd be sitting much better at 34% closer to today.
If we could somehow end up with over 500k in delegations, we'll be laughing all the way to the bank assuming HIVE will be over $20 a token in 25 year time.
Again, these are bare minimum projections and are based on HP income only.
Real Talk
You've seen the key results of my projections for EDSvote. The more HP delegated to EDSvote the better it is for EDS and the more HIVE we'll all earn collectively.
My goal is to get 150k HP delegated into EDSvote in its first year. I will be posting weekly reports for EDSvote to include curations rewards earned, how many EDS were minted, who gets them, etc, etc. I plan to shill delegations hard in those reports each week to increase the HP EDSvote receives.
150k is doable I think and performs well over the projections.
Run time - 20.28 years (falls perfectly in line with EDS miners ending)
EDS profit flip - 6.42 years
EDS APY bottom - 16.36%
EDS APY flip - 9.43 years
EDS APY after 25 years - 27.66%
Im not into making wild predictions but I think aiming for 150k is realistic and would set EDS up nicely for the next 20 years. Both EDSvote and EDS miners would finish after 20.28 years and from that point, no more EDS would be minted.
The HP balance would keep increasing and EDS APY will kick into overdrive and increase twice as slow fast.
Bottom line on real talk is EDSvote will be aiming to have 150k delegated by Next April.
Who will @eds-vote by voting on?
You will not receive an upvote from @eds-vote for delegating HP to @eds-vote
40% of the VP will be allocated toward curation of investment/income content through manual curation.
40% of the VP will be allocated toward upvoting EDS tokens holders that have over 100 tokens.
Please do not ask about this, upvotes are not guaranteed. If you get an upvote you get an upvote. The plan is vote EDS tokens olders with over 100 tokens but plans can change and i dont want the hassle of being thought of as an upvoting service.
- 20% of the VP will be allocated toward upvoting comments in our posts and rewarding our followers.
This is more of a guide than an exact science and will take a couple of weeks to fine-tune. We get 10 full upvotes of 100% per day so we have 1000% each day to vote with. My action plan is to work on EDS token holders that hold more then 100 tokens first. I will add them to the voter, see how many post daily and then work out the VP to equal roughly 400% in total. After that, I have a percentage to work out comment upvotes and manual upvotes. Job done but it'll take 1-2 weeks to get there.
Curation Rewards
I will be amining to earn between 8-10% APY in curation rewards. The @eds-vote account will perform full power-downs with 100% of the HIVE going to @eddie-earner to be powered up.
For every 1 EDS token EDSvote distributes, 2 HIVE are powered up to @eddie-earner
- 50% of curation rewards are used to mint new EDS for HP delegators
- 50% of curation rewards are used toward growth that increases weekly HIVE income payments, decreases the EDS APY decline and speeds up the EDS APY flip
That's about anything i know
Between the 1st post that can be seen here and this post, I think i have covered the idea of EDSvote, what the expected rewards will be and how it can perform for EDS over the next 25 years.
Another reason for EDSvote, actually one of the key reasons to offer something where people could delegate HP to mint EDS instead of having to buy something is that I hope to be able to distribute EDS to a much wider range of investors. Currently, 100% of newly minted EDS are going to EDS miners. There's nothing wrong with that but EDSvote will open the gates to many new people are people that missed out on EDS miners.
Over the coming years, people will delegate HP for a while and get a few EDS, others will delegate now and leave it be for years while others might increase thier delegation over time. Because of weekly reports, we will always be promoting EDSvote and getting it to fresh eyes, new investors.
The more wallets EDS tokens can sit in, the more people we can provide HIVE income for.
If EDSvote pulls in 500k in HP delegations in the first year, I swear to release an EDSv2 token (pegged to 1 HIVE) with no limit hardcap and new miners!
OK, Thank you for taking the time to read through this
If you have any questions are would like to leave some feedback, please do so below and I'll get back to you at some point soon.