Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 1st rebalance

This is a post by @hoosie, using an alt-account. This is an update on a tribe token experiment I started on the 10th of Nov 23. That experiment is designed to 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).

You can check out the initial post that explains it all here.

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Rebalance Update

This is a standard update following a rebalance of the account.

Starting Position

The table above shows the starting position for the week, the new number of tokens (before the rebalance is undertaken and spare HIVE is sold to buy more tokens). The table also shows the new token price, value and percentage weight of the tokens in the basket.

The additional tokens gained came from a combination of:

• Tips made in the comments of the previous weeks update (ALIVE),
• Tribe tokens gained from tagging the relevant tribes in the previous weeks post (using the tags; #leofinance, #aliveandthriving, #pimp, #pob, #cent, #neoxian, #inleo, #hive-engine, #tribes, #hive),
• And, tokens gained from delegation of the tribe tokens held (to; @leo-curator, @heartbeatonhive, @pimp-curator, @bee-curator, @pob-curator, @cent-curator, @ctp-curator and @neoxag-curator).

In the future, when there is enough HP on the account, I will also start to delegate HP to accounts that also bring in the targeted tribe tokens (delegating to @leo-voter, @youarealive, @tokenpimp, @thisisawesome, @hiro.gita, @ctpsb and @neoxiancityvb).

The table below summarises the planned delegations and accounts to be used:

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New swap.hive to invest

As this experiment is only about the 8 noted tokens, all other income and tokens were sold for swap.hive to be re-invested in the tribe tokens. This came from:

• 50% of the previous week's post payout in HBD was sold for hive,
• All other tokens in hive-engine that are not part of the experiment were sold.

That gave new a new basket balance of:

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Rebalance Calculation

The 'total value to rebalance' figure from above was then used to calculate the new number of tokens that should be held in the basket, if spread evenly across all 8 tokens - see table below. The second column states how many existing tokens need to be sold (if the number is negative) and how many new tokens need to be bought (if the number is positive).

If tokens need to be sold, then it means that token price has done well in the week, and the rebalance acts to effectively take profit from the gain in that tokens value in the week, so that it can be used to buy more of one of the other tokens that has had poor price performance in the week (ie, to buying more tokens at a bargain price).

Actual Rebalance

As guided by the table above, the following action was then taken:

• Sold tokens that needed to be sold,
• Bought tokens that needed to be bought.

N.B. Due to the time it takes to un-stake tokens (if needing to be sold), and the difference in buy and sell prices, it may not always be possible to rebalance the basket exactly as planned. Although in general, from week-to-week it should not drift too far out. As such, the following table presents the totals after undertaking the actual rebalance, with the aim of trying to get as close as possible to the planned rebalance numbers.

From there - all tokens were staked, and delegated to the noted accounts.

That completes the rebalance process for this period.

Summary

The following table presents the summary for this rebalance:

The following table presents the summary from the start of the project:

As this is just the first rebalance, and only one week has passed since the start of the experiment, I didnt really know how things would go. Also, with no HP to delegate and a starting value of only 1 HIVE each in the tribe tokens to delegate, meant that any gains from delegation were always going to be small. The last post got some upvotes, but not many, hence the payout from that wasnt great. However, token gains have been made. The APR has worked out as really high, but thats due to the low value of initial investment and a large comparative gain coming from the post payout (even tough in real terms that was quite small). I expect the APR to drop in the coming months and settle out to its natural value (whatever that is).

In reality the experiment needs to be able to run a good number of months to see if it will work in principle, but I cant really see why it shouldnt. Some nice post up-votes would give it a good kick start, but I wanted this experiment to be as clean as it could be, and to run as organically as it could, and as such, it will get what it gets.

In any case, I was quite excited to do this first rebalance and had been waiting all week for it to happen. I'm happy with the results - the tokens increased in number, as did the Hive value - so I cant complain. Now we just have to see how it goes next week !

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 during 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 hive 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.