Blurt Economic Indicators - 27 February 2022

My weekly look at Blurt's economic indicators.

This week is a bit early as I have other things to do tomorrow, but half a day makes little difference to the data trends.

All rises and falls are relative to last week.

Blurt Economic Indicators

BLURT Supply = 451.6 million
Vested BLURT (BP) = 54.3% (+0.3)

Reward Pool = 2.016 million BLURT (falling)
Recent Claims = 131.0 TRshares (rising)

Vote Yield estimate (100k BP) = 30.6% APR (falling)

Author/Curation Yield estimate = 15.3% APR (half of the Vote Yield)

You can also see the raw numbers on a blockchain explorer.

Insights

This week we are back on-trend regarding both activity and the reward pool. The slight drop in the vote yield reflects this.

I wrote a long time ago, when the gross yield was very high that we would eventually come down towards the 30% mark. We are now on the verge of dropping below 30%, so is there some new target value?

The vote yield is a metric I created years ago when analysing the Steem chain, and it remains useful across all the DPOS chains. The relationship between this number and the algorithmic minting rate (that most people refer to as inflation) gives a measure of how close to capacity the economy is. Just to add, I don't think any of the chains will ever approach capacity as there are always some very large but inactive accounts, such as the exchanges.

The inflation rate that goes towards the reward pool is currently about 6% pa. With the yield at 30%, that gives us a load of about 20%. These are big macroeconomic numbers that move slowly due to the individual actions of all Blurt members. No single person can push these numbers beyond a certain amount. So, if we pushed the load capacity up to, say, 25%, then the vote yield would drop to about 24-25% APR.

Like I said, these are fairly slow-moving numbers, but if we continue to onboard new members and increase both posting and voting, then an overall vote yield for the chain of about 25% APR is a challenging but also achievable goal.

Comparisons

The Blurt yields at the moment continue to be high - I don't think I can any longer say that they are higher than defi pools, but they definitely don't suffer any "impermanent losses".

A comparison with the other Graphene chains done using the DLease delegation rates.

Steem DLease rates: max 29% APR (average 22%)
Hive DLease rates: max 13% APR (average 6%)

Those rates have always tracked the profitability of each chain and have the advantage of being one simple number.

With the three graphene chains diverging in terms of their economic models, I do wonder how useful such comparisons are, except perhaps to gauge how those different models behave at the macroeconomic level.

Although Vote Yields are expressed in terms of financial returns, they are also fundamental expressions of the level of activity on each chain relative to the coin minting rate.

Hive has undergone HF25 and, as predicted, rates have fallen towards the chain yield. Steem is higher due entirely to the high SBD; however, note it has been oscillating wildly as SBD price oscillates and the system is now close to a debt-ratio maximum.

We now have a BLURT price feed within the Blurt wallet, so I no longer need to give my weekly price comparisons. Instead, I shall show the difference between our BLURT feed estimate and the BBLURT price.

BLURT feed: $0.0322 (-7%/week) 322

BBLURT price: $0.0312 (-14%/week)

BLURT has been trying to push through that 4-cent mark but has not been helped by a tumbling crypto market. BTC has rallied off a $34k low but is meeting strong resistance at $40k.

Note that any swap pool price will not necessarily reflect open market prices. A swap price will only change when there is an actual trade; buying BBLURT will increase the price and selling BBLURT will lower it. There are no "open orders", so every transaction will have an effect. This is how arbitrageurs make their money: buying and selling price discrepancies across different markets.

I hope these numbers will give members some insights into how the Blurt economic system is managed and, more importantly, how each individual user can both benefit from and affect the whole chain.

Blurt Better!

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Buy BLURT on Probit, Ionomy, Hive-Engine.

Buy BYT on Hive-Engine

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_{Posted from https://blurt.one}