My understanding was that the question in the OP was asking when these 5% (representing an additional 50% of market cap) would be released to the extent they can be traded.
One more point which just occurred to me was the issuance of farmed safecoin and how that might impact supply and cost of the coin. Most new farmers will actually be users, who by definition will be interested in the fundamentals of the project. If these individuals en masse presume an upward trajectory for the price of safecoin a certain percentage will surely choose to buy more on the open market as an investment.
The balance between how many new participants become net sellers of their farmed coin vs. net buyers/holders will surely play an important role in the price of Safecoin over time.
I think folks do not really “get” that 5% part. Perhaps it has not been clear (PS not yourself)
5% of all safecoins have been reserved for existing maidsafe investors. They are held by the foundation and investors can swap their shares at any time for these. Currently they are below the price some paid for investment so would not be a good idea.
As original investors swap over to safecoin their equity belongs to the foundation. Therefor maidsafe gets owned by the foundation.
There is no force or anything here, original investors may swap some/none etc. and initially I think very little will happen.
It’s as though our original investors now have a constant “buyer” for their equity stake and this “buyer” tells them the price every day (value of safecoin). So it’s very good for them, good for us and great for the community. We want a team of Engineers working hard on the core and also a team we can put our finger on at any stage and speak to etc.
Of course this does not mean there wont be others, many more and many anonymous so it’s all very good I think. It’s not like these get cashed in and given out, they are swapped, so we have a ton of additional investors in an appreciating asset, I think that will do the opposite of flood the market, but instead make it a larger more solid market, these people have shown immense ability to hold steady in their investments so far over a 10 year period, they are likely very stable today. We will see though.
So the original investors own shares in maidsafe the company which are transferrable 1:1 (?) for safecoin at any time of their choosing. If they choose to sell their shares in maidsafe then the foundation now owns their shares (and this a part of maidsafe the company), and there are now an additional number of Safecoins which can now be deemed available to trade on the open market.
Does this option for the original investors to sell their shares (for safecoin) begin when safecoin is ‘live’ or can they do so now in exchange for maidsafecoin? Also, when this ability to swap is theoretically there should the market cap of the coin reflect this, or should these coins only be recognised the instant they are exchanged?
Your right, it is quite confusing and may be partly due to the current nature of the asset and how it is held.
These safecoins exist now as maidsafecoin and are being stored via the omni protocol on a blockchain address?
They don’t yet exist. They will be safecoin when live.
Ah yes that’s the part that was not crystal clear.
So we can say to current Maidsafecoin holders that only 10% of issuance is in existence today.
Further, we can say that the 5% of early investor Safecoin that will be created when the network goes live, will be in very strong hands.
So, it seems we’ll have a market cap 50% higher on day one due to the early investor portion of Safecoin being added to the pool.
The SAFEnetwork market cap (total market value) is obviously 100% of which 15% will be in existence at day 1.
We have 10% proxy coins currently in existence with a 5% increase towards market cap with the investor portion (held in trust)
And some of that 15% will be spent in PUTs in the near to medium term after launch. Those spent become available for rewarding farmers.
So while 15% on day 1, it is not 15% forever. Unlike other coins like Bitcoin etc, the 15% will be eventually spent (yes some maybe lost/hoarded forever)
In effect the 100% of safecoin can easily see 1000% given out in rewards and spent back into the network over the years/decades.
Just realised I never answered you there.
The original investors/staff/foundation all own 100% of maidsafe. 5% of safecoin is reserved for them. So 5% of safecoin == 100% of maidsafe equity if that makes sense. So an individual may hold X% of the company and get an equivalent (approx) of the same X% of 215 million safecoins (215 being approx 5% of all safecoin)
Nice thing is that as this happens all these safecoins end up back in the network trading away and buying resources.
This 5% is a one time trade, or an eternal 5%?
In other words once the 5% is spent, then there won’t be another 5% round that’s right?
@dirvine How is the conversion from share to Safecoin calculated for a shareholder?
As MaidSafe shares are issued/redeemed, the percentage holding represented by one share changes, so it’s not a simple relationship unless there are a fixed number of shares, just being bought and sold.
Is this fixed, or if not, can you explain how the Safecoin exchange rate per share is calculated?
At the point safecoin goes live 5% of these == 100% of maidsafe equity. It is fixed at that point in time.
Yes that is right.
so, maidsafe traders, right now, are bidding for a 5% stake in the future safecoin, which might go live sometime in the next couple months. meaning safecoin, itself, is valued at 20x 51 mil, or 1 billion market cap. or are we talking 2x… which is $100 mil mcap, which seems about right to me.
They are bidding for a stake in 10% of future safecoin. the 5% is an amount set aside to offer to buy equity from maidsafe shareholders (from the whitepaper). So these are two different amounts. Maidsafe shareholders are the folks who funded the project for 8.5 of the last 10 years so it certainly feels right that this was offered to them. These folks may seel their equity on private markets and not for safecoin. It is really up to them, but at least as a company MAidSafe can say they have offered a (hopefully) very good return through safecoin, even if it is not used.
I’m not worried by the 5%'ers.
Think about it from their perspective. They invested in David and the technology he described to them way back in 2006. They did this because they obviously believed in him and the project he envisioned. They have now waited 10 years to see the potential for that investment realised. Some might say that after all that time they’d be keen to sell, but I’d say the opposite. The potential they invested in is still a fair way off even with the big bubble alpha launch will inevitably create. I suspect some will want to take a bit of profit, but I very much doubt it will be much given how much that 5% will soon be worth.
As David says, it’s up the them so who knows really, but what I can say for sure is that I wouldn’t be liquidating the best investment I ever made just as it started to show a very healthy return. They obviously understand what the safenetwork could potentially be and David would obviously council them with common sense… hold for now unless you need the money badly.
Given how big safenetwork is probably going to be I don’t think we’ll need to worry about the 5%er’s. I reckon they’ll get lost in the wash as they slowly realise profits over years… why would you sell out when it’s just about to explode and you have intimate connections/ties to the project?!
ok, so maidsafe traders are bidding for 10% of the issued safecoin. the other 90% goes to who? miners? farmers? and how close is the project to safecoin going live?