The Blurt Yield Token (BYT) is a new Hive-Engine token designed to yield passive rewards to token-holders.
Whether you are active on the Blurt social media platform, or not, your BYT holdings will be earning extra income for you.
The aim is to have about 80% of assets on Blurt and 20% on Hive-based programs. The latter will also act as a source of liquidity to avoid unnecessary token-swaps.
With an asset-backed price, the BYT program is designed to yield significant and sustainable rewards.
Read on for full details...
###Quick Guide (TLDR)
Holding BYT tokens will yield a weekly income plus potential price appreciation.
Weekly rewards distributed in SWAP.HIVE tokens every Monday. The first distribution will be on 13 September 2021.
Only 100,000 BYT for sale this round.
Regular posts will include data on the value of the whole fund (NAV) and the official price of each BYT.
This BYT Round 1 lasts 180 days. A vote by members will then determine whether to liquidate the fund or roll-over into Round 2.
That's it!
Passive and profitable.
###How BYT Works
The process is very simple. Members buy BYT tokens from the Hive-Engine market and receive a weekly distribution of profits in SWAP.HIVE proportional to their active holdings compared to the total active tokens. Active holdings exclude those tokens placed for sale on the market. A minimum active holding of 1 BYT is needed to receive rewards for that week.
There will only be 100,000 BYT tokens available for sale. The initial fixed price is of 1 HIVE, but some tokens have been placed at a discount and a premium. At current market prices, this is approximately equivalent to 10 million BLURT. Just 2,000 BYT (2%) have been set aside for marketing and development. This is a one-off charge that will not be made in any future rounds. All other tokens held by admins or devs have been purchased.
Profit distributions shall be done every Monday and a post shall highlight the activities for the previous week. As BYT tokens are priced in HIVE, but much of the activity takes place in BLURT, profits shall be calculated using the average exchange rate for BLURT/HIVE from Hive-Engine, Probit and Ionomy.
Such weekly posts shall include the net asset value (NAV) of the BYT program and an estimate of the token value. Because of currency fluctuations, this value may be volatile even though profits may be stable. We may post more frequently to keep members informed.
The administration account @blurtyield will not receive any distributions based on tokens held, but shall receive a 10% fee from the weekly profits, paid in BLURT. The costs of managing the program shall be taken from such fees. All BYT tokens held by the administration are not active and are not included in any calculation of the fund value.
We aim to keep about 20% of the fund value within the Hive ecosystem for faster management of the weekly rewards and any buybacks. We reserve the right to use those funds to gain further income for the program.
The BYT Round 1 program has a fixed term of 180 days. The market shall open on 1 September 2021 and the fund profits calculated until Monday 28 February 2022. Before that date, members will be asked to vote on whether to close and liquidate the fund or roll-over into Round 2. We have experience of such token liquidations and the process can be very smooth so long as all members are paying attention. If the decision is made to close, given the process of powering down, this should not take longer than one month.
###Further Comments
This is a small but important change to the original "BYT: Blurt Yield Token Launch" post. Paying out in SWAP.HIVE, instead of BYT, has the one disadvantage that members are not auto-compounding their holdings. However, on reflection, there are a number of advantages.
This week of tracking the fund metrics has shown me that the BLURT/HIVE exchange rate can be highly volatile. This means the fund value and profitability can appear to jump around from day to day. As BYT tokens are priced in HIVE, the calculation and the investor perceptions of the real rates of return will be much easier if profits are also distributed in HIVE - or SWAP.HIVE, which is the same thing.
It also means that members can make their own decisions as to whether to buy more BYT, add to their BLURT, or whatever. That decision is then only one trade away, rather than having to figure out two conversion rates. This also means there is no selling pressure on the BYT token.
Our target is a return of about 25-50% APR. It could be much higher than this as income can come from multiple sources. However, please be aware of the currency fluctuation risks involved. It is possible for tokens to decrease in price due to circumstances beyond our control.
Should the program need to close before the end of a round, then all assets will be distributed back to token holders on a proportional basis through buybacks. We are not responsible for any technical issues arising from the platforms being used but will always aim to safeguard the value of member funds.
I am sure that some people will ask whether we can do a direct swap of BLURT coins for BYT tokens. The short answer is: No. It is important to use the markets and the existing flows of coins. Indeed, the change I have made has been after just a few days of experiencing such coin dynamics. If it can be shown that some automated swaps would be useful, then we can investigate their feasibility. At the moment, I am leaning towards a BLURT/BYT liquidity pool, but need to look into the economics of this in more detail. The reason why this is a closed program with a time limit is precisely to experiment in real life as to which types of systems will be most effective and sustainable in the longer term.
Any questions, please ask. Popular questions may be added to a general FAQ.
###One Last Thing...
DYOR.
I have to take a look to this opportunity. thanks for creating it