Tribe Token Experiment - Using rebalancing, curation delegation and tribe tagging - 9th 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. This experiment is designed to use a number of techniques to see if its possible to grow an account fairly organically, including:

• Delegating tokens to tribe curation accounts,
• Delegating HP to curation accounts that provide drips in the target tribe tokens,
• 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.

Rebalance Update

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

Starting Position

The table above shows the starting position for this rebalance, 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 rebalance post (0.4 ALIVE !),
• Tribe tokens gained from tagging the relevant tribes in the previous rebalance post (using the tags; #leofinance, #aliveandthriving, #pimp, #pob, #cent, #neoxian, #inleo, #hive-engine, #tribes, #hive) - but nothing major to speak off for this period,
• And, tokens gained from delegation of the tribe tokens held - I could see that this worked fairly well in this period (14 days) - which is the longest number of days I've waited between rebalances. It was all small beer, but it worked (well atleast it did for 7 out of 8 of the curation accounts - one didnt payout in the period).

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.

As can be seen in the table above, the basket value has fallen since the last rebalance (by 0.332 HIVE - not too much) due to the price of 7 of the tokens falling in value (out of 8). However, it was still good to see that there were gains in the number of tokens across all 8, before entering into the rebalance calculation.

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

Only 7 of the noted token delegation accounts used paid out since the last rebalance - I'm sure that the one that didnt pay pout will catch-up at some point.

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. The price of HIVE was low which gave a good conversion price from HBD which was niced, although it wasnt a large post payout generally - but it was enough to give an overall positive change in the value of the basket, which was nice,
• I did manage to sell off 3 other layer-2 tokens that were in the wallet, but for a very low amount in total (0.001 HIVE - there really wasnt much of them to sell !).

That gave a new basket balance of:

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 column at the right titled 'difference from above' 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 period, and the rebalance acts to effectively take profit from the gain in that token's value in the period, so that it can be used to buy more of one of the other tokens that has had poor price performance in the period (ie, to buy more tokens at a bargain price).

The table above also shows the price change in the period. As can be seen 7 of the 8 tokens in the basket had dropped in value, creating an overall drop in the basket value. However, I was able to sell a small amount of PIMP which had increased in value, and then some LEO and BEE as they are currently over allocated in the basket. With the income from the post and those sells, it allowed me to buy all of the ALIVE needed and most of the CTP needed, so it worked out not too bad actually.

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 (and that certainly was the case again in this period). Although over time it will average out, so that it should not be too far out. And as the curation income grows, so too will the liquid amounts available each period, at which point the rebalancing will work better. 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.

As expected the main token increases were for ALIVE and CTP, from the rebalance, however, all of the other tokens also had some gains from curation payouts and the post payout, except LEO (because I sold all of the liquid LEO I had as part of the rebalance). So its great to see the majority of the tokens gaining in number again.

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:

So it was a decent rebalance to be fair. I was happy with the post payout, it was clear that the curation accounts had an impact (well atleast the 7 that paid out did) and that the rebalance worked as planned. Now that some of the token numbers are starting to creep up, the curation accounts for those are starting to have more of a noticeable effect. That effect is not huge yet, but its good to see it beginning to help. And it really helps during the rebalance as it gives more liquid tokens to sell when needed, so that should continue to help over the coming rebalances. So overall, it was all good.

The table above attempts to summarise how the various methods have worked in the period, and rank them in order from best to worst (top to bottom). Its hard to capture the exact values from each method making a contribution, but it gives a rough idea of how its all working.

The post payout in HIVE dominated again this week and it was just enough to keep the overall gain in the basket value positive which was nice. The low price of HIVE (~$0.31) at the time of the rebalance was also useful as that meant the HBD from the post payout bought a little more HIVE to be used for buying more tokens. It was also nice to see curation and the rebalance having a noticeable impact - small at the moment, but it will continue to grow with each rebalance (hopefully).

So it was good to see the basket grow in value again, even if it was only by 0.086 HIVE. Considering that 7 out of the 8 tokens had a price drop in the period, that aint too bad to still be gaining in value (thanks to the nice pump in PIMP and the post payout). Its also good to see that the token numbers keep increasing, as that is what will have the main effect over time.

That wraps up this rebalance. Heres looking forward to the next rebalance already !

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.

Requests to be tagged in the report

If you want to be tagged in the report so that you know when a new one comes out, let me know:

@fantagira, @tydynrain, @shanibeer, @new.things