As brendio was quite interested in raising his pirate account to higher tiers (https://bitcointalk.org/index.php?topic=82572.msg911809#msg911809) I thought of the following concept:

Pirate pass through shares traded on GLBSE, pirate account by brendio, management of GLBSE operations by me. I'll take a 3% cut on the dividends for trade fees (e.g. filling buy offers costs 0.5%) + time invested, so in a 7% account scenario it would pay out 7 * 0.97 = 6.79% per week.
Brendio however said, he would only pay the 7% for the first 1700 BTC invested and 6.75% for BTC deposited after that, so we'll have to see about that. Mathematically, it can be simply treated as a slight decrease in interest on pirate side, but even in the worst case (millions and milions of BTC at 6.75 so the 1700 with 7% don't really matter any more) it still pays out better than any other 1-week pirate pass through bond on GLBSE: 6.75 * 0.97 = 6.5475%. The average case should be something in between.

Intended share price:
1 share = 1 Bitcent (0.01 BTC) to allow people with a few mining bonds to reinvest their earnings. Also I like to have more liquidity.

Outline of terms (to be feedbacked) in "prose":

Every Sunday there will be the dividends for the last week (the ones pirateat40 pays on monday). To clarify, I pay the dividends from the 1st-7th on the 14th while brendio receives them on the 8th, so he has a few days buffer to transfer them to GLBSE.
Every share receives the interest as dividend via GLBSE (minus GLBSE fees, if any get introduced there). To receive the dividend, you need to hold the share at the time the dividend is paid, there's no way currently to track if somone held a share for say 6 out of 7 days.
After the dividend payment on Sunday, all outstanding bids of 0.01 BTC or higher receive new shares. The money from this sale then is transmitted to brendio and put by him into his savings account asap.
I'd love to sell shares more often or just put up a huge bidwall, but there might be problems with dilution and it would be too hard to sell shares again if you don't want them any more.
Since pirateat40 seems to calculate interest by the minute(!) there might be some slight inconsistencies (especially once interest on brendio's account increases or decreases) - so the final dividend will simply be:
( Brendio's total interest of the week * fraction of pass-through money in his account (e.g. 3/4) ) * 0.97 (the 3% cut)

If pirateat40 lowers or increases the interest on brendio's account, everything stays the same, just the interest gets increased or decreased on shares too (and my 3% of the interest is worth more as well). To hit the 7% weekly, this asset needs to sell 170000 shares worth 1 bitcent each (or 1700 BTC worth of shares), until then rates are as displayed in pirate's thread. After this amount is reached, there will either be a motion or a discussion here how to continue - or maybe brendio even decides to continue paying 7% to the fund as well, since he hopefully won't have a lot of hassle with all of this anyways.

As always with pirate investments, one of the first questions coming up would be: "How do I get out?!". On one hand, you can of course fill the ask spots on Sunday yourself, when I try to raise new capital, on the other hand you can also request a payout at a 5% fee. You'll have to transfer the shares back to me for this and won't receive dividends for that last week (obviously). I'll then ask brendio to withdraw the proper amount of BTC from pirate and transfer these asap to the GLBSE account where the share transfer originated from. You'll then receive 0.0095 per share sold this way, the 0.0005 BTC fee will most likely go to brendio and me (+ GLBSE for fees) - I haven't talked to him about that yet though so this is subject to change.

Another question that might be important:
Why should I trust you and will you verify with GLBSE?
You should trust nobody on the internet and no, I won't verify with GLBSE for the simple reason that I don't want my personal data floating somewhere on a server/HDD in the UK or US. If you really think I'll take the money and run, well then simply don't invest here. I don't know brendio in person either, neither pirateat40. All I'm offering is a little bit of convenience and I also tried to keep share prices low enough that you don't have to put up hundreds of BTC just to see if I would steal them from you or not. Most of the time the money anyways will lie at pirateat40's accounts, so you should rather ask yourself if you trust him and his operation.

I plan however to publicly release the following information that can be verified with the blockchain (the blockchain never lies!!!11):
* An address to the GLBSE account of this asset to be used by brendio for dividend payments
* An address to the GLBSE account of this asset to be used by brendio for withdrawn money (e.g. someone want to withdraw 100 BTC and sends 10000 shares - then brendio would send the 100 BTC to that address after getting the coins from pirateat40 for everyone to see. This also means that you can withdraw quite in silence and anonymously)
* TX hashes of:
  # The sunday payments to brendio to be deposited to pirateat40 (or, if I get a direct deposit address to pirate, then the TX hashes to this account)
  # The TX hashes of dividend payments from brendio to the dividend GLBSE address (a bit redundant, I know)
  # The TX hashes of withdrawal payments from brendio to the withdrawal GLBSE address (this can as well already be seen on blockexplorer by knowing the address)

What if pirate defaults and brendio won't get paid or only gets a fraction of the deposit back? - Well, in this case the shares will simply be bought back for either 0 BTC or the fraction that brendio got per piece and the asset is dead.

All in all I want to offer a service that I would like to see: Low fees, long time forum members, always a chance to cash out, high return rates, clear terms and low share price for liquidity.

The "real" terms will be worded a bit more strictly than what's written above, but contain in essence the same things.

Do you have any feedback?
Would you buy such shares?
Is there something that I overlooked (unfair advantage, too much work for me or brendio in case of X or too high a risk for doing Y...)?
Please comment (in a civil way) below and let me hear your ideas.

Perfect!

Just a recommendation: Plot this (with assumed constant difficulty) for 1 year and show people the nice exponential curve!

But as soon as they don't get executed right away, I'm a maker and won't have to pay fees - so why freeze them?

I'd love to see one of the 6.75% offers on GLBSE, as it makes it easier to see if dividends are paid out in time... if nobody does it, I'll do it but I'd need one or more partners that have accounts at pirateat40 (I don't, and I most likely never will invest more than play money there) and guarantee me to deposit any amount of BTC I give to them there as well as paying out any amount of deposited BTC asap on my request (asap = within 1-2 business days or so, I have a life too...).

Great, however I encountered a weird bug(?):

Available balance displayed: 0.0401499, Bid (unmatched!) for 4 shares of HEDGE at 0.01 BTC is NOT possible!
After a bid for 3 shares at 0.01 BTC: "Available: 0.0099999" - my bid did freeze 301500 Satoshis. As the bid is NOT immediately matched though, I should be able to place the remaining bid too, if I have the funds and my first bid did not get executed right away. I wonder if the system only freezes the 0.5% fee or if it even silently charges it too... /tinfoilhat

tl;dr: Even nonexecuted bids in the orderbook get the additional 0.5% fee frozen for no apparent reason to me.

Well, congratulations to the mathematically challenged people that are buying PPT.DIV shares for above 1 BTC now - seems like quite a run away from PPT.E at the moment... 

Not at all, as this means you pay out more on rounds where difficulty is on the rise (average time between blocks is less than 600 seconds) and less if it is going down (slower than 1 block every 10 minutes).

Just pay the expected 100% PPS rate:

Sum of ( (Hash rate * Time in seconds of difficulty 1 * block reward 1) / (difficulty 1 * 2^32) + (Hash rate * Time in seconds of difficulty 2 * block reward 2) / (difficulty 2 * 2^32) + ... )

The time in seconds either starts at the beginning of the week or at the last block of the old difficulty and ends at the last second of the week or at the last block of the current difficulty.

Example:

Hashrate of the network explodes, difficulties are 1, 4 and 16, 2 difficulty changes after 3 days, 0:00 (timestamp of last block with difficulty 1) and 2 days later 0:00 (timestamp of last block with difficulty 4)and another time on the last second of the week, hashrate of the bond = 1 MH/s:

( ( 1*10^6 H/s * 259200 s * 50 BTC) / (1 * 2^32) ) + ( ( 1*10^6 H/s * 172800 s * 50 BTC) / (4 * 2^32) ) + ( ( 1*10^6 H/s * 172800 s * 50 BTC) / (16 * 2^32) ) = 3 646.12788 BTC (1 MH/s was a lot in the beginning of a bitcoin block chain!)

With your old calculation (R*(86400*7*B*10^6)/(D*2^32)):
( 1 * 86400 * 7 * 50 * 10^6 ) / ( 1 * 2^32 ) = 7 040.79866 BTC

or the updated one (R*(N*600*B*10^6)/(D*2^32)):
( 1 * 6048 (= 3 times 2016 blocks) * 600 * 50 * 10^6 ) / ( 1 * 2^32 ) = 42 244.792 BTC

Yes, the examples are highly exaggerated, but you still see that you clearly will pay out too much (in extreme cases far too much!) if difficulty rises. As you increase your hash rate per your calculations as well, you'll increase that effect too. On the other hand, if difficulty goes down, you underpay or get closer to the real PPS values.

Feel free to pay out on your flawed simplified model, but if a little bit of math is already too difficult to do, it makes me wonder if you're up to the task of handling a mining operation that has to double it's size consistently every 1.5 years...

Great, now all I need is a little spare time to whip together a nice chart...

*sigh*

Where's my spare time?!

Already put in some offers at 1 Bitcent - 500 BTC seems to me about right as valuation for a company like this - 2k BTC per month profits sounds too good to be true to me... As far as I know quite a few established pages are close to being unprofitable and I doubt people will pay substantial amounts at penny auctions, I'm always ready to be surprised though!

By the way, as cool as bitcoins themselves are - most bills are still paid in fiat (USD, EUR...) and conversion of BTC to fiat is expensive, takes quite long and has fees at every.single.step.

Also I'm not really sure what this thread is even about - GLBSE as alternative to Kickstarter?

Goat could offer an askwall or trade shares by hand, though I guess an askwall would be easier to manage (but harder to predict how many really want to sell).

Old data will come sooner or later too, at least we now have the current one!

"Mr. judge, I was unaware the lady in question was only 15 years old..." - "Well then you won't face any charge of course!"
You would make a nice policeman!

Seriously, the whole thread here is a joke/perfect example how to spread FUD.

You can pay any amount of fiat in bitcoins instead of fiat - but it wouldn't make much sense right now to rent a flat in a monthly rent that is only composed of BTC (e.g. a flat that would typically cost 1000 USD/month for 200 BTC/month). As soon as you say that you change the price depending on the BTC <--> fiat exchange rate, you're no longer renting for bitcoins, you're renting for USD but can get paid in BTC.

Just imagine if I start a pizza business, that sells pizza for 1.5 BTC a piece. Since I can pay for my stuff like cheese, flour etc. in BTC (via Amazon vouchers or so) I never touch USD any more. Still I'll go bankrupt if BTC price tanks, as my pizzas are now dead cheap but to buy the ingredients I suddenly have to hand out 100 instead of 10 BTC. Same goes for rent etc. - even if it's PAID in BTC, it doesn't mean it's PRICED in BTC. Bitcoin is still highly volatile, has a huge inflation compared to fiat currencies and even though they are easier and easier to be used, most products one can buy are priced in fiat in the end and won't keep their current prices should the exchange rate jump in one or the other direction.

Put it up on GLBSE with shares at ~0.1 BTC a piece, finding a handful of people that give you 300 BTC straight away might be hard.

Insurance is completely useless, if you want to have this 33% "insured", just put 33 Bitcents per BTC invested to a seperate savings account that you own to have the same effect.

Every week any number of bids at or above 1 BTC should be granted shares - then the money gets transferred to Mr. Ponziirate, lies there indefinitely and the 6.5% are then paid as dividend to shareholders. Should someone decide to get out of there, one could either trust liquidity + demand and sell the share for 1 BTC or try to convince goat to get e.g. a payout of 100 BTC from pirate and issue a buyback offer at 1 BTC per share.

To get compounded interest, buy at least 16 shares or multiples of that ( 1 / 0.065 ), then you should get at least 1 BTC per week and can buy a new share each time. Still not 100% perfect each week, but close enough... I'd recommend to diversify though personally.

Did you send the 1.96 BTC to that address or did you receive the 5.995 BTC (partially) from that address? Your 2 statements above seem contradicting to me.

Could you put this on github? Might be easier to edit/improve there...

Thanks by the way!

"How long until it will have solved more virtual hashes per BTC invested than a cheaper static 1 MH/s contract" is calculable. Not perfectly, as you have a weird payout scheme/calculation, but it should be close.
"How long until your investment is gained as dividends" not, as it depends on difficulty
"How long until you will have gained 10x the dividends of a static bond" is not calculable as well, as this also depends on difficulty.

An ideal case for buying this bond here would be a strong difficulty increase in the beginning and then, after you passed the hashes per BTC invested of 1 MH/s bonds, a decline or at least slow increase in difficulty again. Also you should take into account when buying this on which weekdays difficulty increases can be expected, unless the payout calculation gets closer to the real expected values.

FUD in it's truest form...

If I get Bitcoinica coins because somebody took a donation address of mine and spammed it in this IRC channel - how should I know and why should I care?!

I'd recommend this Bitcoinica hacker guy to just create a few transactions with huge transaction fees - good luck in tracking these!