This is a post by @hoosie, using an alt-account. This last week I have dreamed up a tribe token experiment, that will use 3 main techniques to see if its possible to grow an account fairly organically:
- Delegating tokens to tribe curation accounts,
- Via posting experiment updates in the relevant tribe accounts,
- And by using portfolio rebalancing (inspired by the XV token project from @spinvest which uses portfolio rebalancing to take profits).
I was getting intrigued by all 3 of these techniques from a mathematical perspective and I've tried to mash them together to see if there is a sort of compounding-on-compounding-on-compounding effect that might arise, if the 3 can all work together ! The more I thought about it, the more obsessed I got with trying it - so here goes !
So how will this work ?
To start:
- I have sent 8 HIVE to this account (@hoosieboy) from my main account (@hoosie),
- I have selected 8 tribe tokens that have an account that I can delegate to for curation, and that I can tag within each update post, which should fit this type of experiment. They are: LEO, ALIVE, PIMP, BEE, POB, CENT, CTP, NEOXAG,
- I have bought 1 HIVE worth of each token at todays prices (or as close to) - see picture above,
- I have staked and then delegated those tokens to the relevant curation accounts (@leo-curator, @heartbeatonhive, @pimp-curator, @bee-curator, @pob-curator, @cent-curator, @ctp-curator and @neoxag-curator).
Then the idea is that the account will grow via the following mechanisms:
- Via the curation payouts from the curation accounts for those 8 tribe tokens,
- Via post payouts about the experiment including progress update posts on how its going,
- Via the rebalancing technique, which at each rebalance, will entail selling some of the well performing tokens in the period, to buy some of the poor performing tokens in the period - in other words, to take some profits, and use them to buy some more tokens at a cheaper price.
The table above summaries the starting position.
The next step is:
- Push out this post and let it run its course, and get a payout from it,
- Sometime after the post payout, check in on the account and do a rebalance.
The rebalance will consist of:
- Selling all tokens and HBD from the post into SWAP.HIVE in Hive-engine,
- Assessing the new total value of the portfolio (8 tribe tokens + swap.hive),
- Use that valuation to assess what a rebalance would look like (so each token will have a weighting of 12.5% of the total portfolio),
- Buy and sell the tokens as needed to bring the basket of 8 tokens to those equal totals (which also means using up all of the swap.hive),
- Then stake all tokens again, and delegate all tokens again - which completes the rebalancing,
- I'll also delegate the HP gained from any post payouts to relevant curation accounts (ideally aligned with the tribes again, equally, if possible),
- Then push out an update post to show progress - which completes the cycle. From there its a case of just repeating and seeing how it goes !
Some rules I've set:
- This account will only be used for the rebalancing project - that is, I wont make any other posts with it or do any manual curation with it - although, curation will happen via the delegations to the curation accounts,
- Post payouts will be set to 50% HP/50% HBD. The HBD will be sold and put back into the tribe tokens via the rebalancing method described above,
- The HP from post payouts will be delegated to curation accounts, ideally aligned to the tribes again (I need to research this in time for the first rebalance and find appropriate HP curation accounts),
- I wont upvote or reblog any of these posts from my main account,
- I will not hold any other tokens - anything else in the account will get sold at each rebalancing and invested back into the tribe tokens,
- I've not yet set upon the frequency of rebalancing. It will need to be a minimum of 7 days apart, so that the previous post has paid out, and probably a maximum of 1 month apart. I'll pick and choose inbetween that period from 1 week to 1 month. At first I'll probably do it more often (due to excitement about the experiment) and then settle into something more like every couple of weeks.
Tribe Benefits
I am a little wary of spamming the tribe front ends, and hence I dont intend to post every week. Although the posts really wont be any different from anyone else posting about a strategy they are using to generate growth from crypto. Also, if any of the tribes complain about the approach, then I will stop posting in that tribe. But hopefully that wont be the case as its a genuine experiment to assess some financial growth techniques with any growth all being delegated into curation accounts that should benefit those tribes, via the tribe token delegations, and the community in general, via the HP delegation, which again I will try to align towards the 8 selected tribes.
Summary
I'm quite interested in this from a mathematical perspective - and have set up a spreadsheet to try and analyse the results. I think its fun, and its only costing 8 HIVE to setup, and then it also gives some use to this alt-account that I set up purely by accident (see not below). I think it will be interesting to see how it pans out and whether it grows or not. In any case, lets see what happens !
Details about my alt-account
This is a post by @hoosie, writing on an alt-account that I setup purely by accident when I didnt know what I was doing on my first few weeks on the Hive blockchain ! I thought I was getting an actifit account for my main hive account, and instead bought an entirely new actifit account, that I've rarely used ! I have used this account for the experiment because it basically had zero value in it (well about 1-2 HP worth), and importantly very little layer 2 tokens, and hence it acts as a clean slate to properly track progress for this experiment.
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