🤣 LOLZ Project Update - Dividend APR, First Buy and Burn, Increases to Holding Requirements, and NFT Giveaway! 🤣
Happy Easter weekend to all our Christian friends. Lots of stuff to discuss this week, so lets get to it.
Dividend APR Estimates
In case you didn't know, in addition to being a tipping token, and a farming token, LOLZ is also a dividend bearing token. Every week we pay out 40% of the LOLZ Curation earnings for each of the tokens we are curating to our Headliners (those holding 512 or more LOLZ.)
Now that we have been paying out dividends for some time we thought it would be good to show you what kind of return we are generating for our Headliners. So today we have run the numbers based on the last weeks worth of dividends to see our annual percentage return (APR) was for the last week.
But First, a Word about APR's in the Defi World.
Unlike a bank where you are given a static interest rate, for most defi projects, listed APRs should be considered almost an instant "estimate" based on the conditions at that moment. The only thing that is guaranteed with defi APRs is that they are going to change over time.
This is true for LOLZ Defi as well. There are a lot of moving pieces in LOLZ Defi, all of which impact the actual long term APR that is achieved. The prices of the tokens paid out change day to day as does the price of the LOLZ token. The curation earnings also change day to day. Also, as more and more LOLZ is accumulated by the Headliners the value of the dividends are spread out over more and more tokens.
We at LOLZ have little to no control over any of those variables and do not want anyone to think we are promising a given return rate. All we can promise is that we will pay out 40% of our curation earnings to our Headliners on a per-LOLZ held basis.
OK, Enough CYA Lets Get to the Estimate
So using the dividend payments for a week we can calculate an APR estimate using the following simple equation:
APR = (Weekly Value of Dividends Paid * 52 weeks)/(Number of LOLZ held by Headliners * Price of LOLZ) * 100%
(We couldn't resist the chance to have two Chevy Chase meme's in one post)
To get the weekly value of the dividends paid out, we went through our LOLZ Farming Reports for the last week and multiplied the amount of tokens distributed by their most recent price on Hive-Engine (note to self - I need to automate this!):
We multiplied those dollar values by 52 weeks to get a yearly value of $356.72.
Next we find the value of the total number of LOLZ held by Headliners as the sum of their holdings (18240 based on our last report) times the last price for LOLZ ($0.0349) to get a total value of the LOLZ held of $636.95.
Finally, we divide the yearly dividend estimate by the value of the held LOLZ and then multiply by 100 to get an estimated APR of 56%.
Now, we want to repeat again, this value is not a good estimate of the long term return. We ran these number last week, and the APR was estimated at 100%. The change was driven mainly due to the raise in the price of LOLZ from the $0.026 range to the $0.035 we had today.
First Buy And Burn
Our daily reports are starting to get some more love and are now more than covering our server costs. As such, we are going to start the buy and burn we had promised based on those earnings and in fact made our first buy and burn yesterday. It was a small amount (50 LOLZ), but if the report continues to gain support we will be increasing our buys as well.
For this buy we just did a market purchase. In the future we plan to add a buying bot to buy at the bid so that we can burn more LOLZ. The goal of course is to reduce inflation to support the price of LOLZ going forward.
Increases to Holding Requirements
Speaking of controlling inflation, we have been considering additional increases to the holding requirements for the use of LOLZ. We love that there is so much sharing of our jokes going on, but we also want to maintain a healthy price for LOLZ so that when someone does receive an LOLZ tip it has enough value to make it meaningful. Otherwise we run the risk of just becoming Blockchain spam - and nobody wants that.
We will bring the issue up with our Governors soon and discuss options for how, when, and if to implement any increases to the requirements. We just wanted to give everyone some fair warning that increases are on the horizon.
@lolzbot Has Been NFTized
Recently, one of biggest supporters, @holovision the owner of @memehive, created a series of NFTs based on our funny little @lolzbot. Each @lolzbot NFT is unique and you can read about how he created these generative NFTs in his post.
While they may not be Bored Apes, they are pretty cool and we hope our followers consider picking up one or more of these rare collectibles to add to your NFT collections. Proceeds from the sale of these NFTs will go towards supporting the HiveMe.me platform which is a cause we certainly can support.
Calling All Inspectors
We have recently been invited to join forces with some of the other tipping tokens to jointly combat the issue of abuse of our tipping tokens and have helped form the Token Inspectors, a group of token supporters intended to help identify and reduce token abuse.
Each token owner will set their own rules for what is acceptable behavior with their tokens, but will be sharing information on bad actors. For LOLZ, we have said a number of times that the use of the !LOLZ command is intended for true engagement with others on the blockchain. Activities that are to be avoided include:
- Asking for your comment to be upvoted because you tipped the author
- Tipping yourself via an alternative account
- Engaging in schemes to facilitate quid pro quo tipping
We have all agreed that we have no interest in publicly shaming anyone and hope that by reminding people of the rules those who may be skirting the edge of abuse will correct their behavior. However, we all have and will use our blacklists for those rare bad actors who don't want to follow our rules.
Sprechen Sie Deutsch?
LOLZ plant, mehrsprachige Unterstützung für unsere Witze hinzuzufügen. Als erste Arbeitssprache haben wir Deutsch gewählt.
Translation: LOLZ is planning on adding multi-language support for our jokes. We have selected german as our first language to work with.
I have been asked a couple of times to consider adding multi-language support for our jokes. So far I have resisted because, well frankly, I don't speak anything but English (and as an engineer I have trouble with that!). But we recognize there is a large group on non-English (or at least not first language) speakers on Hive who are being left out of the fun.
So as some of our other development works is slowing down we have decided to work to build in some multi-language support. We have selected German for our first language to include because we have noted that their is a strong German presence here on Hive and believe we can tap into that group. Our biggest problem of course is that we don't speak German and our jokes often don't translate well because they are mostly play on word jokes.
To address that we are planning to reach out to the German community via @thatgermandude to get help building a German joke database. We will be running German Joke Challenges and awarding some LOLZ like we do for our English joke database.
Depending on how well that works out, we plan to tackle Spanish next.
We made a little bit of progress on our To-Do List, but have started adding some items too.
Add new tokens to LOLZ Curation Add new tokens to LOLZ Defi
- Add HIVE delegation to LOLZ Defi
- Start daily LOLZ Contest
- Get LOLZ added as purchase option for Risingstar and DCity.
- Begin building a German Joke database.
@lolzbot NFT Giveaway
In honor of the creation of the @lolzbot NFTs we are going to forgo our normal LOLZ Free For all for this update, and give away one of these beauties to one of the commenters on this post.
Rules to be included in the giveaway include:
- Leave a comment (one entry)
- Reblog this post (and say you did in your comment, one entry), and
- Tag a friend (one entry).
The winner of the NFT will be announced on our update! Good luck to all.
About the LOLZ Project
LOLZ Project is an engagement project with the mission of spreading laughter and joy on the Hive blockchain. Hive users can use the !LOL or !LOLZ command in comments to share a clean joke and tip the author an $LOLZ token.
Help Support the LOLZ Project
Here are some easy ways you can help support the LOLZ Project -
- Use the !LOL and !LOLZ command often to tip fellow Hive authors.
- Upvote and re-Hive our posts. All rewards will be used to help cover server costs and increase curation value.
- Delegate Hive tokens and earn LOLZ Farming rewards.
- Follow @lolztoken and participate in our airdrops, contests, and giveaways.