[Withdrawn] T4 Dividends

[huafei]

the price up with buyback ，but we don’t want to sell some nsr as “dividends”

[cryptog]

there is no difference between buybacks and dividends in terms of value delivered to shareholders,

I disagree. You need to sell shares in order to profit from share buy back. So you are losing voting power.

[tomjoad]

You need to sell shares in order to profit from share buy back. So you are losing voting power.

That’s not quite correct. A share buyback reduces the total supply of shares. If you don’t sell NSR, your equity percentage (and voting power) increases every week that buybacks occur. You can keep your total equity percentage constant (say 0.5% of the network) by selling shares after every buyback week.

If your total equity percentage remains constant, so does your voting power.

[cryptog]

by selling shares after every buyback week.

My bad. You are right.

[mhps]

Exchanges will pocket dividends paid for their users’ NSR fund.

Price surge of PPC when acquiring dividend PPCs and price depression after dividends wil cause a loss of value.

[Cybnate]

One consideration is that as time progresses, dividends will become less and less efficient due to NSR abandonment

Same for BCE over time

Exchanges will pocket dividends paid for their users’ NSR fund.

Price surge of PPC when acquiring dividend PPCs and price depression after dividends will cause a loss of value.

Sounds like the whole dividend framework is broken or will be broken soon. Are there still circumstances when we would choose dividends over buyback? Or should we remove the obsolete code from the client?

[mhps]

Are there still circumstances when we would choose dividends over buyback?

Dividends is good for periodically distributing small (compared to PPC market depth) amount of profit. Shareholders have expectations when dividends will arrive, and pull funds from exchanges (or force exchanges to give dividends to users’ accounts).

[Nagalim]

I’m withdrawing this. I think we should focus on making a PPC reserve before we work out a method for dividends.

[crypto_coiner]

A share buyback reduces the total supply of shares

However, the total supply of shares is different from the total supply of voting shares because of NSR FLOT reserve, which is tricky to calculate one’s voting power.