Grant Report: "Early Stage, Dual-Side Liquidity and Shareholder Dividends"

Good morning.

I am going to need to apologize again that I am behind on this first full report of the initial day and one-half of trading for the NBT grant that I am the custodian for. The data feeds and report output are taking longer to make work than I estimated, but my progress is good and tomorrow is looking like it will be productive.

I can provide the raw sales numbers from the two exchanges that I have. These numbers begin at 14:00 UTC on Tuesday and go until about 01:00 UTC on Thursday.

Note: BTER started trading approximately 4 hours after CCEDK did

Sales Metrics

Total Sales (sell-side), CCEDK & BTER = 135,972 NBT
CCEDK = 107,699 NBT | BTER = 28,272 NBT

Total Buy-back, CCEDK & BTER = 96,899 NBT
CCEDK = 71,782 NBT | BTER = 25,116 NBT

Total Volume (sell + buy) = 232,871 NBT

Grant Reserves

CCEDK:

NBT / PPC Market = 458,526 NBT / 28,198 PPC
NBT / BTC Market = 286,200 NBT / 32 BTC
NBT / USD Market = 200,000 NBT / 0 USD

Additional account funds not on a market: 11.25 BTC*

* On account that trades NBT/PPC from before the bot was turned on; funds will be moved to second account that trades NBT/BTC to add to the wall.

BTER

NBT / BTC Market = 391,961 NBT / 16.9 BTC

Retained In Grant Address

400,000 NBT

* Awaiting deployment to an exchange if volume requires it, or when a next major exchange comes online and offers an NBT trading pair

Dividend Allocation Set-aside (to date)

Total Sales Volume (sell-side, 135,972 NBT) * 10% = 13,597 NBT or 11,700 PPC # $1.16/PPC

Period 001 distribution trigger 72,000 NBT

Current percentage of period dividend allocation set aside: 18.88%

I will continue to prepare the data for more frequent reporting, so thank you for your patience. If you have any questions, please do not hesitate to post a comment. Numbers can be independently verified once the raw data is available. I want to make this available as soon as possible.

//KTm

Is the dividend set-aside a separate fund, or included in the grant reserves?

Is it correct to be able to total these values to get something close to the initial grant? I’m looking for how much value might have been lost to arbitragers due to market fluctuations and buy/sell wall repositioning.

  • 458,526 NBT + 28,198 PPC
  • 286,200 NBT + 32 BTC
  • 200,000 NBT / 0 USD
  • 11.25 BTC
  • 391,961 NBT + 16.9 BTC
  • 400,000 NBT
  • 13,597 NBT (dividend set-aside – include this?)

At first glance, these numbers look excellent. Good work!

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Chronos:

I should re-label that section going forward, I was getting a head of myself. The automated trading bots are not yet configured to set aside those funds, but will be later today or tomorrow. The “set aside” amount is located in the buy walls at this time, and will need to be slowly withheld as we get closer to the end of Period 001.

I’d like to add that there are two additional line items that I missed in my initial report:

Grant Reserves - Addendum

BTER

220 PPC from pre-bot trading on the account that is now handling NBT/BTC trades. This will be moved to the other account that manages NBT/PPC trades and added to the wall.

Retained in Custodian’s Peercoin wallet

500 PPC was acquired during the time period after the grant was released, but before the funds were available on an exchange (in accordance with the terms discussed here).

The transaction can be seen in the Peercoin block chain, and is held in address PQh1KGDhHLbXH4PL99Ywn52uVGe8iM841T

Rather than move these funds onto one of the exchanges, I will hold these funds in that address and consider them to be part of the first dividend payment. Therefore, only 71,500 PPC will be needed to be withheld from the actively traded accounts to meet that liability.

The last item listed above (for the +500 PPC) also means that the total sales number should be increased by 785 NBT. The rate that PPC was trading for at the time was $1.57/PPC. The record of this transaction appears in the block chain. This represents a special case, so it should be the only one of it’s kind.

Please note that due to the way that the Nu wallet currently selects its inputs and outputs, the transaction above “came from” the custodian’s fee. I should have moved the fee payment to a completely separate wallet, instead of sending it to a different address on the same wallet. I will remedy this going forward and provide a public “breadcrumb” trail to make sure that everyone can easily account for the way that the original 1,800,000 NBT grant (1,836,450 NBT minus the 36,450 NBT fee) has been moved through the block chain.

I’ll try to include the first of those accounting details in my next operations report.

//KTm

Yes, using the values displayed there, it’s possible to approximate net gain or loss due to arbitrage. If we use the price of $1.05/PPC and $414.52/BTC at this moment (from coinmarketcap.com), here’s the calculation that I get:

CCEDK

NBT / PPC Market = 458,526 NBT / 28,198 PPC … 458,526 NBT / 29,608 NBT
NBT / BTC Market = 286,200 NBT / 32 BTC … 286,200 NBT / 13265 NBT
NBT / USD Market = 200,000 NBT / 0 USD … 200,000 NBT / 0 NBT
Additional holdings of 11.25 BTC … 4663 NBT

BTER

NBT / BTC Market = 391,961 NBT / 16.9 BTC … 391,961 NBT / 7005 NBT

Retained

400,000 NBT
(500 PPC from pre-exchange) = 525 NBT

TOTAL = 1,791,753 NBT (approx.)

Estimated holdings as a percentage of original grant: 99.54183%

Trading fees should reduce the total holdings by a small amount, and I’ll do a deeper dive into the numbers to confirm that reality matches the expectation of 0.2% on trades.

@KTm Did we ever publish the “first full report” referenced here? Thank you!

EDIT: Is this it? https://gist.github.com/KiaraTamm/1dc7486b77cc03e808c2

Will we have access to raw trade data? It’s difficult to verify, for example, if value of BTC changes, that all capital gains and losses are accounted for in custodian reports.

Yes, @Chronos those were the old updated information. The new data that I have is published here:

In the report you will see a note about a gap on the BTER exchange data, because I did not realize that BTER only keeps the past 24 hours of trade history. I have sent a note to their support team to ask for a full accounting. From my review as trading has occurred, BTER has lagged CCEDK’s NBT/BTC market in volume. This would mean that the numbers would not appreciably change more than the amount of trading that occurred during the same time on CCEDK.

This is not optimum information to have, so I apologize for the delay in getting all of the relevant information.

In summary, my trade data suggests that we have seen approximately ~314k NBT worth of sell-side trading in the last 8 days. I will begin to set aside funds for the first dividend, as written in the grant specification. I am worried that the current buying and selling has been very symmetrical, so our buy-side funds are not deep at all. I believe we are 100% solvent if everyone who has bought NBT tried to sell back their NBT to us, but with crypto exchange rate differences as they have been, and with exchange commission fees calculated, the margin is not big.

The NuBot is not yet automatically setting aside 10% of the sales, and there is no easy way to do it manually while the bots are running, so I will need to start to slowly set that aside into a separate account with the support of the exchanges.

//KTm

I can provide data in .csv formatted files. For example, here is the CCEDK NBT/USD market trade history from 25-SEPT-2014 until 30-SEPT-2014.

It’s been awhile since we heard from you. How are operations going since the bots were fixed?

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