Blurt Economic Indicators - 27 March 2022

My weekly look at Blurt's economic indicators.

All rises and falls are relative to last week.

Blurt Economic Indicators

BLURT Supply = 454.8 million
Vested BLURT (BP) = 54.2% (+0.2)
BP Voting Capacity = 36.1% (-0.6)

Reward Pool = 2.007 million BLURT (rising)
Recent Claims = 133.4 TRshares (falling)

Vote Yield estimate (100k BP) = 29.8% APR (rising)

Author/Curation Yield estimate = 14.9% APR (half of the Vote Yield)

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

Insights

Some rather interesting numbers this week. The BP has risen, this in spite of some fears about large power-downs. However, the voting capacity and claims are slightly lower, with the consequence of a higher vote yield.

A reminder that the supply and BP are taken as current snapshots, whereas the other metrics are on a 15-day average. It is thus not clear whether the drop in voting activity is due to the new Blurt Power not yet showing up as claims, or users have been a bit reticent in posting while the BLURT price is lower.

This latter reason is something one has seen time and time again across all the DPOS chains - and it is a rather dumb attitude to take. The value of your BLURT fluctuates in line with the markets, but the earning capacity of your Blurt Power is unaffected by this!

If you earn 500 BLURT when the coin is priced at 1 cent, and keep it until it is priced at 5 cents, that is the same as earning it at the higher price. Earning zero now, just because the price is "low" (although still about 4x the price of 9 months ago!) means it will still be worth zero when the price rises. Smart!

I know lots of users think this way and it remains deeply flawed thinking. Indeed, when the price does rise and activity increases is precisely when the yield decreases as more users are voting. That is when you can feel smug about all the BLURT you have accumulated while some other users thought it wasn't worth it.

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 28% APR (average 21%)
Hive DLease rates: max 12% APR (average 8%)

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.

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: $0.0172 (-4%/week)

BBLURT price: $0.0162 (-8%/week)

The current price attenuation seems to have tapered off - for now. indeed, the data at the top indicates that for every seller there is a buyer, so we may need to wait for this situation to unwind to see another leg upwards.

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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Can be done directly here.
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Thanks!

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