How to support the CTP Swarm Booster with delegations
After the first post yesterday, a returning question was if it was possible to support the project with delegations. For many of us, there is not much liquid Hive around because we tend to power up everything in this tribe, which is great by the way :-)
Tonight while not being able to sleep, I tried to come up with a solution how people could support the project with delegations. I came up with a solution and I wanted to share this with you immediately:
Support the CTP Swarm Booster with delegations
You can delegate as much Hive Power to the account @ctpsb as you want. I will estimate the effective curation reward that this delegation generates until the end of the month of september. These estimated curation rewards will be added to your tab. When the token is distributed, you will get the same number of tokens that you have Hive on your tab by 30.9.2020.
Read this only if you want to know how I will calculate it
(Caution: may contain nerd language)
I expect that in the beginnings the account will make about 10% curation rewards calculated on a yearly basis. I divide this by 365 to define the return per day. I will call this the daily return.
Daily return = Delegated Hive * 0.1 / 365
Within a day it's difficult to evaluate when a delegation will effectively start to impact the upvotes of the account. Therefore I need to exclude the day from the calculation when the delegation is made. We can assume that starting from the next day, the delegation will start to influence the upvotes of the account. However these upvotes will generate curation rewards only after 7 days. So when a delegation is made, the first 8 days it won't generate any effective curation rewards. It is only starting from the 9th day that this delegation will actively generate curation rewards. After that and as long as the delegation is active, the delegater will be credited a daily return. These daily returns will be credited to his tab and at the end of september, he will get tokens according to the final amount on his tab.
Let's make an example:
Hive Owner A delegates 100 Hive on 27.8.2020.
- From the 27.8.2020 until the 4.9.2020, this delegation will not be able to generate curation rewards.
- From the 5.9.2020, there are curation rewards generated by this delegation. From this date on and for every day that the delegation is actif, a daily return will be credited to the tab of the delegator.
This would be in this case:
100 * 0.1 / 365 = 0.0274 Hive
- So every day Hive Owner A will get credited this amount until the 30.9.2020.
- From 5.9 to 30.9 this corresponds to 26 days.
- In total he will get 26 times 0.0274 Hive which is a total of 0.712 Hive.
When the token is distributed, Hive Owner A will recieve 0.712 Tokens thanks to his delegation
Conclusion – Read only this if you don't want to read all the technical gibberish
If you want to delegate HP to the account @ctpsb you can do that starting from today. The earlier you start and the more Hive you delegate, the more tokens you will get when it is distributed.
What happens with the delegations after the 30.9.2020?
If you have delegated Hive to the account @ctpsb, you can either cancel the delegation by the end of the month or you can let it run. If you let it run, you won't have a direct advantage but an indirect one. The account will be more powerful thanks to it and give bigger upvotes. Thanks to your delegation, the account will generate higher curation rewards and you will contribute to increase the value of the token.
P.S: 100% of the Author rewards of this post will go to the @ctpsb account.