Liquidity Pool-Change in Buyback Calculation?

This post is not financial advice. If you decide to follow what I am doing you do so at your own risk.

Someone asked a while ago if there will be a change to the buybacks once I mint some new tokens for the LP. In a nutshell, no.

Let me first explain how the buybacks are changing starting in October. The buybacks will be quarterly. The scheduled buybacks (the buybacks at a profit to the seller)have been a minimum of 5% of the circulating supply so the quarterly buybacks will be at least 15% of the circulating supply. No real change there except the frequency.

I have always based that on actual tokens in circulation. If they aren't burned they count. This means I include the tokens in the tip bot and official account when I determine the circulating supply because well those tokens are a part of the circulating supply.

It would be disingenuous not to count them.

That won't change when the liquidity pools launch. I will count all tokens that have been minted and not burned even though a huge percentage of those tokens will be locked in the LP and not actually circulating. Actually all of those tokens I mint for the pool will be locked in the LP on my personal account.

This basically means, like always, the effective buyback rate is higher than the 5% because it's all tokens in existence not a cherry picked amount for my convenience.

It's just easier this way. That's full transparency . It would drive me mad if I did it any other way, even though I could justify it. It keeps things honest and keeps things stable.

So yeah January buybacks will be quite large. I still won't know exactly how many tokens I will mint for the pool until after October's buyback. I will mint as few as possible and go very slowly.

We have over 2x the HP to token ratio now , so there's lots of play room. That is not including hive-engine assets, other LP holdings or HBD savings so the tokens are actually backed by more than the HP. I never include HP delegated to the account in any of these calculations. I only include assets we actually have.

That's the beauty of backing before mint (and burning which I will resume once the pool is established) and keeping those tokens backed.