Thoughts around dunk and its curation
This is my first post on #dunk platform. I have been using the tag since last few weeks and I made a small investment in #dunk coins when I saw a post from @amr008 that he is going to offer the dividends for this coin. It was quite obvious to track the APR.
In first few days I realised that there is an outstanding APR for #dunk coin.
I am a freelance blogger and I decided to invest some time in #dunk because of the simple economics.
I made simple calculations and figured out that at current price for 2350 Dunk the vote value is close to 5.6 Dunk. Considering 50% share for curators on #dunk vote with 2350 Dunk fetches 2.8 Dunk. This also means when a curator gives 840 upvotes of 100% voting power, he achieves break-even.
Days for Break-Even
Considering approximately 20 upvotes, one achieves break even in just 42 days or may be 45 days as all the 20 votes will not be carrying the 100% voting power.
Now let us crunch some more numbers. When you give the upvotes, you get the curation rewards in your wallets within 7 days. Which means after 140 upvotes, technically your voting power starts increasing. This compounding helps in reducing your break-even period.
Here, I have a simple expectation. Though the tokenomics look great in terms of curation rewards, it is necessary to provide the liquidity in the market for #dunk. At the time of writing this post the turnover on hive engine in last 24 hours was just 3 hive.
The engagement project run by @amr008 revealed us the true potential of #dunk coin, which was giving the highest APR surpassing the #pob. However, the liquidity in #pob and #leo tokens make it special and #dunk holders need to focus more on the liquidity of the token in the market. The difference in buying and selling price expectations is quite huge.
This would result in changing all the tokenomics.
I have done very rough calculations here just to give my brain some exercise. Now i want you to criticize, support and comment.