BTC transfers are free on GLBSE.

He could simply send you the BTC through GLBSE too, that way it's verifiable by Nefario. Problem solved?

I checked with pirate again this morning, apparently he had forgotten to do the withdrawal because it was clubbed together with the request for transfer of funds to brendio. Got the funds immediately, and I just sent them out with an extra 0.02 per bond to compensate for the delay. Enjoy!

Update:

Dividends went out yesterday, soon after pirate paid them out. Brendio: check your BS&T account, it should be 5989 BTC richer already.
Nefario will transfer control of the asset shortly. All that's remaining is some buyback requests - for which I've put in a withdrawal request with pirate but am still waiting to receive the funds. Again, keep an eye on the interest address if you're waiting for BTC from the buyback - it's out of my hands for the moment. Thanks!

I see the dividend payment marked as pending on my account, but it hasn't hit my wallet yet. You could look out for it on the interest payment address.

Here is the jointly signed statement as promised:

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

Effective 05:00 UTC, Jul 30th 2012, 'bitfoo' (gpg key id 0x7087E81EDF0E3996) will transfer complete ownership of the FOO.PPPPT asset on the GLBSE (https://glbse.com/asset/view/FOO.PPPPT) to 'brendio' (gpg key id 0xB943789241C3973E). After this date, brendio assumes all liabilities regarding payment of coupons, principal and full adherence to the listed asset contract terms, releasing bitfoo of the same. This transfer of ownership and liability is contingent on the occurrence of each of the following events:

1) pirateat40 (operator of the underlying investment, Bitcoin Savings and Trust / BS&T) transfers all funds held in bitfoo's BS&T account to brendio's account.
2) Nefario or another admin of GLBSE transfers control of the FOO.PPPPT asset to brendio.
-----BEGIN PGP SIGNATURE-----

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=juXk
-----END PGP SIGNATURE-----
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-----END PGP SIGNATURE-----

Note that the interest for this week is accrued in my account, so I'm still liable to pay it out.

Ok ok, it's back to 7% now. 7% interest on par value of 1 BTC, with a variable premium on entry into the fund.

BTW, bond sales are now active again, until the fund is transferred over to brendio.

It is my understanding that he will follow the contract, but I'll let him confirm this point (he might be away until Monday).


Yeah, sorry if that was unclear. I pay out 1 BTC principal + 0.07 BTC interest that I receive for that week, which is why you need to send me the bonds *before* interest payment, and I send back the 1.07 *after* interest payment. I wish I could afford to pay out an extra 0.07 BTC from my pocket, but I'm not pirate.

Sorry for the late update, but hopefully we've worked out something that should be good news for all.

Pirate's new account tiers strongly encourage consolidation. Smaller accounts simply cannot compete any more. Operating this fund under a subaccount of another trust account holder usually ends up being a conflict of interest. So here is the plan:

FOO.PPPPT is being taken over by brendio's Bitcoin Investment Bank. The next two interest payments (Jul 23rd and 30th) will be paid out by me, after which brendio will take over. The fund will keep the same ticker, and will continue to pay out 0.07 BTC per bond at least for the forseeable future. We will soon publish a signed statement documenting this transfer of ownership and liability. To be clear, after the Jul 30th takeover, brendio will be fully responsible for managing the fund and paying out coupons. I will have no relationship with FOO.PPPPT apart from holding some bonds myself.

Brendio and the BIB have been managing many funds on GLBSE much larger than mine, and should be at least as trusted, if not more, than I am. But this takeover still involves a change in counterparty risk for this fund. Due to this, I will provide a buy-back option for the next two weeks, without any fees. The procedure will be the same as documented in the OP: send me the bonds by Monday 02:00 AM GLBSE time, and I will credit 1.07 BTC per bond as soon as pirate sends back the funds. All funds remaining in my account after interest payment on Jul 30th will be transferred to brendio's BS&T account. I assume brendio will provide more details about how the fund will be operated after the transfer.

More details will come as we work them out. Feel free to shoot questions or concerns in the mean time.

This is correct: according to the contract, I'm only liable to pay out whatever I get. But it turns out that 5832 BTC is nowhere near close to the amount that's required to even get the 7% interest rate (unless someone wants to buy 20000 bonds wholesale right now). Dropping interest rates down to 3.9% (savings account) or 5% (trust account tier 1) at this stage is out of the question - if it comes down to that, I think invoking the buyback clause and closing the fund is probably a better deal for everyone because 7% or close to it is being offered by other bond issuers. However, I am currently in discussions with other trust account holders to get a 7% sub-account. I will update when I get full confirmation of the various options available to me.

Here's a note about running the electrum server on a 32-bit machine. The issue is that abe tries to mmap the blk000x.dat file, which may be too large to fit in 32-bit virtual memory. I use a patch for bitcoin that reduces the max size of each dat file to ~500MB:


The idea for this patch comes from this post by John Tobey. The "right" way to do this may be to fix abe to only mmap the file partially, but until then, this little hack works.

You can find the growth data from the dividend payment stats on the GLBSE asset page for this bond: https://glbse.com/asset/view/TYGRR.BOND-P

I can confirm 7% if (1) I get the trust account, and (2) the total amount invested (including any security deposit) attracts >= 7%. If needed, I will sell/buyback bonds only once a month to ensure a stable balance. If I end up getting more than 7% due to bonuses / whatever, all benefits will be passed through (it's in the contract!)

I'm unsure of the exact mechanics of how these things work, because I missed the IRC meeting about this while I was away. Pirate has promised to send me logs of this meeting, so I'm still waiting on that.

PS: If bond-holders have liked this service and feel like they trust me, feel free to give me a rating on -otc, as a good WoT rating is one of the criteria for trust accounts.

I don't intend to fuel the panic fire, but I can only do limited buy-backs now because the minimum balance for a trust account is 5000 BTC, and we are barely above this level.

Bonds have a face value of 1 BTC, but were being sold for 1.05 BTC, with a 0.07 BTC weekly coupon. I didn't want to be accused of false advertising. People who bought in at 1 BTC got (and are still getting) a 7% return.


I'm still waiting on pirate to give me information about my trust account status, so that I can continue at 7%. The two other options are - send the funds through another pass-through for 7% (ugh), or buy-back at the end of July. I suspended my own bond sales until I can figure this out, which seemingly triggered some panic.

Either way, bonds on sale at GLBSE are quite cheap now: buy buy buy!

Yesterday's coupon payment went off smoothly. Still travelling though. Bond sales temporarily suspended until I get back and figure out what my standing with BS&T will be in August.

The difference is because they had a 10-for-1 stock split, but couldn't update the contract.


Witnessed. Pre-announcing this move is a good way of reducing the value of those holdings even further.

(If you want to remove that from your post I'll unwitness it!)

As I said earlier, I was flying at the time, so my time-zones are all out-of-whack right now. Dividends went out around 12 hours ago. Next week may also be slightly delayed, but it'll get back to normal after that.


I did clear out all bids at 1.05 after dividend payment. But in general, the pricing will be fixed based on the schedule and not based on pirate's interest payment time. That's because his interest payments are calculated based on the average balance during the week from Monday 12 midnight CDT till the next.

If you intend to issue this asset and want to back it with FOO.PPPPPPPT, PM me with any details and we can work something out.

Wouldn't this then be a PPTPT (Pirate Pass-Through Pass-Through?)