[GLBSE] PureMining: Infinite-term, deterministic mining bond

[Meni Rosenfeld]

All 10,000 bonds have been sold. That will be all for the near future. Thank you to all investors.

In other news, some (but not yet all) of the BFL single units have arrived. To anyone who wants this to feel a bit more "real", here is a photo (not all of the units are mine):

[Meni Rosenfeld]

Coupon payment summary for April 2012 (total 0.0183439763 BTC per bond):

Code:

Block number	Timestamp        	Timestamp (Unix)	Elapsed time	Difficulty	Block reward	Coupon    	Status
177743    	Apr 29 2012 11:50:02  	1335700202          	188328    	1508589.67206 	50        	0.0014532954	Paid
177407    	Apr 27 2012 07:31:14  	1335511874          	208629    	1577913.48568 	50        	0.0015392233	Paid
177071    	Apr 24 2012 21:34:05  	1335303245          	210537    	1577913.48568 	50        	0.0015533002	Paid
176735    	Apr 22 2012 11:05:08  	1335092708          	196334    	1577913.48568 	50        	0.0014485132	Paid
176399    	Apr 20 2012 04:32:54  	1334896374          	202079    	1577913.48568 	50        	0.0014908987	Paid
176063    	Apr 17 2012 20:24:55  	1334694295          	214922    	1577913.48568 	50        	0.0015856518	Paid
175727    	Apr 15 2012 08:42:53  	1334479373          	232779    	1577913.48568 	50        	0.0017173972	Paid
175391    	Apr 12 2012 16:03:14  	1334246594          	203256    	1626553.48133 	50        	0.0014547393	Paid
175055    	Apr 10 2012 07:35:38  	1334043338          	196855    	1626553.48133 	50        	0.0014089262	Paid
174719    	Apr 08 2012 00:54:43  	1333846483          	226725    	1626553.48133 	50        	0.0016227111	Paid
174383    	Apr 05 2012 09:55:58  	1333619758          	223984    	1626553.48133 	50        	0.0016030933	Paid
174047    	Apr 02 2012 19:42:54  	1333395774          	204861    	1626553.48133 	50        	0.0014662266	Paid

[Meni Rosenfeld]

I will have very limited availability between May 20, 2012 and June 17, 2012. I have arranged for coupons to continue to be paid on schedule (there could be some delays on weekends, especially the one on May 27); but I may not be able to offer support or handle any unexpected situations. Those will be sorted out when I get back.

[organofcorti]

Enjoy your holidays - or work. Whichever

[Meni Rosenfeld]

Enjoy your holidays - or work. Whichever

Oh, it's much worse than either. But probably not as bad as what may be your next guess.

[Philj]

Enjoy your holidays - or work. Whichever

Oh, it's much worse than either. But probably not as bad as what may be your next guess.

Honeymoon? 

[BIGMERVE]

Enjoy your holidays - or work. Whichever

Oh, it's much worse than either. But probably not as bad as what may be your next guess.

Honeymoon? 

Nickleback Concert?

[Meni Rosenfeld]

Enjoy your holidays - or work. Whichever

Oh, it's much worse than either. But probably not as bad as what may be your next guess.

Honeymoon? 

Nickleback Concert?

Military reserve duty, also known here as "miluim".

[BIGMERVE]

Oh, it's much worse than either. But probably not as bad as what may be your next guess.

Honeymoon? 

Nickleback Concert?

Military reserve duty, also known here as "miluim".

Damn... Good luck and stay safe.

[zefir]

Damn... Good luck and stay safe.

OT: damn, I'm dead certain that I heard that exact quote in your sig somewhere, but can't remember 

[BIGMERVE]

Damn... Good luck and stay safe.

OT: damn, I'm dead certain that I heard that exact quote in your sig somewhere, but can't remember 

It's probably because I slipped you a roofie before I said it to you.

[Meni Rosenfeld]

Military reserve duty, also known here as "miluim".

Ok, it's going to be easier than I thought. I'll be at home for the next ~10 days, and even in camp I'll have some free time and internet access.

Anyway, I've been away for a week and they change everything. It'll take a while to catch up with everything that's been going on...

[Meni Rosenfeld]

Coupon payment summary for May 2012 (total 0.0186125703 BTC per bond):

Code:

Block number	Timestamp        	Timestamp (Unix)	Elapsed time	Difficulty	Block reward	Coupon    	Bonds	Total      	Status
182111    	May 29 2012 15:19:52  	1338304792          	209105    	1591074.96185 	50        	0.0015299735	10000	15.2997350	Paid
181775    	May 27 2012 05:14:47  	1338095687          	212718    	1591074.96185 	50        	0.0015564090	10000	15.5640900	Paid
181439    	May 24 2012 18:09:29  	1337882969          	236113    	1733207.51385 	50        	0.0015859134	10000	15.8591340	Paid
181103    	May 22 2012 00:34:16  	1337646856          	213765    	1733207.51385 	50        	0.0014358074	10000	14.3580740	Paid
180767    	May 19 2012 13:11:31  	1337433091          	214080    	1733207.51385 	50        	0.0014379232	10000	14.3792320	Paid
180431    	May 17 2012 01:43:31  	1337219011          	226703    	1733207.51385 	50        	0.0015227088	10000	15.2270880	Paid
180095    	May 14 2012 10:45:08  	1336992308          	215860    	1733207.51385 	50        	0.0014498790	10000	14.4987900	Paid
179759    	May 11 2012 22:47:28  	1336776448          	211237    	1733207.51385 	50        	0.0014188274	10000	14.1882740	Paid
179423    	May 09 2012 12:06:51  	1336565211          	162909    	1508589.67206 	50        	0.0012571413	10000	12.5714130	Paid
179087    	May 07 2012 14:51:42  	1336402302          	169607    	1508589.67206 	50        	0.0013088286	10000	13.0882860	Paid
178751    	May 05 2012 15:44:55  	1336232695          	183646    	1508589.67206 	50        	0.0014171652	10000	14.1716520	Paid
178415    	May 03 2012 12:44:09  	1336049049          	180252    	1508589.67206 	50        	0.0013909743	10000	13.9097430	Paid
178079    	May 01 2012 10:39:57  	1335868797          	168595    	1508589.67206 	50        	0.0013010192	10000	13.0101920	Paid

[Meni Rosenfeld]

I will issue 5000 new bonds tomorrow, at a price which is to be determined.

In other news, more or less all of the units from the first BFL shipment have arrived; I will post more pictures once Inaba finishes tidying them up.

Update: Bonds have been issued, and offered for 0.37 BTC.

[Bitcoin Oz]

How will puremining deal with the ASIC situation Meni?

I see NastyMining is going to change the value of their bonds to 20mh/s or something.

What are your thoughts on a MOORE type offering ?

[Meni Rosenfeld]

How will puremining deal with the ASIC situation Meni?

I see NastyMining is going to change the value of their bonds to 20mh/s or something.

PureMining is a deterministic bond, and it will continue to be 1 MH/s per bond. I don't increase it when something good happens any more than I decrease it when something bad happens, the contract is binding both ways.

Some issuers have offered to pass on gains from the BFL trade-in program. This makes sense given this disruptive event, I wish them the best of luck and investors who are confident in BFL's ability to deliver would do well to consider these offers. But that's not the market segment I'm in, I just want PureMining to continue faithfully filling its role of a deterministic bond long after the uncertainty of the current time is behind us.

BFL's announced specs are very impressive, but on the other hand they don't have a great track record of delivering what they promised on time. I will certainly take their announcement into consideration when deciding on the pricing of any future issued bonds, and investors should take it into account when deciding how much they are willing to pay.

What are your thoughts on a MOORE type offering ?

I think it's very interesting but ultimately I don't see the point. The issuer of a bond with a hardcoded appreciation in hashrate is speculating on what the future cost of hashrate will be, and he will have to compensate for this risk in his pricing. In a fixed-hashrate bond the issuer can much better estimate his cost of covering the bond, and can thus offer it at a more affordable price. Also, since the chosen appreciation rate is arbitrary, it stands in the way of standardization and commoditization.

I prefer the scenario where the issuer just offers more bonds if he wishes to expand utilizing new hardware opportunities, and investors can buy them if they wish to maintain or increase the value of their investment.

[friedcat]

I agree with most of your ideas. But as the issuer of MOORE, I have to make some comments.

Also, since the chosen appreciation rate is arbitrary, it stands in the way of standardization and commoditization.

Exactly. As I admitted in my main thread from the start, our bond is not fungible with deterministic bonds, so I have to do price discovery myself without the help of other people's prices. And I also admit that my pricing includes the compensation to many of my potential risks.

However, the strategy of MOORE is to make its price less prone to technology advances. For technology changes, there are gradual ones and disruptive ones. The policy of my current hard-code appreciation of hashrates aims to neutralize the first, and I will also cover the second with my new adjustments to the contract of my bonds.

I prefer the scenario where the issuer just offers more bonds if he wishes to expand utilizing new hardware opportunities, and investors can buy them if they wish to maintain or increase the value of their investment.

The essence of MOORE is I do the re-investment for them. Even if in the end the investors just get the same as the scenario they do re-investments themselves, the psychological effect of "our bond is not losing value as much as others are" is an advantage both for me and for the investors.

[Meni Rosenfeld]

I agree with most of your ideas. But as the issuer of MOORE, I have to make some comments.

Also, since the chosen appreciation rate is arbitrary, it stands in the way of standardization and commoditization.

Exactly. As I admitted in my main thread from the start, our bond is not fungible with deterministic bonds, so I have to do price discovery myself without the help of other people's prices. And I also admit that my pricing includes the compensation to many of my potential risks.

However, the strategy of MOORE is to make its price less prone to technology advances. For technology changes, there are gradual ones and disruptive ones. The policy of my current hard-code appreciation of hashrates aims to neutralize the first, and I will also cover the second with my new adjustments to the contract of my bonds.

I prefer the scenario where the issuer just offers more bonds if he wishes to expand utilizing new hardware opportunities, and investors can buy them if they wish to maintain or increase the value of their investment.

The essence of MOORE is I do the re-investment for them. Even if in the end the investors just get the same as the scenario they do re-investments themselves, the psychological effect of "our bond is not losing value as much as others are" is an advantage both for me and for the investors.

I agree but personally I don't feel the upside is worth the cost of less direct entanglement with the underlying hardware purchase. But I certainly don't deny that MOORE has a place catering to people for whom it is. In particular, it expands the space spanned by the available investment opportunities, giving sophisticated investors more flexibility in matching their portfolio to their future projections.

Regarding the psychological effect, it's mostly a product of what metric one is looking it. Currently GLBSE shows a graph of an asset price over time, and seeing a graph which is always in decline indeed looks bad. IMO the relevant metric is current price + coupons paid per unit so far. This gives a more accurate, intuitive picture of the viability of an asset, should look the same for functionally equivalent assets, and will show an upward trend for any successful investment.

[Meni Rosenfeld]

I will issue 5000 more bonds early next week.

The price will be somewhat lower than the last issue, to account for hardware advances and the increase in the BTC exchange rate, both of which mean that more hashrate can be bought per bitcoin.

[Meni Rosenfeld]

I've been asked about bulk/presale discounts. I'm not a fan of these things but I guess it couldn't hurt if done modestly and openly. So here are the terms:

1. Out of the 5000 bonds currently issued, up to 3000 are elligible for preordering.
2. Preorder must be at least 500 bonds.
3. Discount will be 2%. The actual price will be determined and disclosed when the bonds are offered publicly.
4. Preordered bonds will start to be delivered after bonds are publicly put on sale.
5. The preorder agreement isn't binding for either party. The buyer can cancel the order if he's unhappy with the price or for any other reason. I can also back out of the deal, but will only do that with a good reason.
6. If more bonds are preordered than available, buyers will be put on a waiting list. Bonds will be offered to buyers who are still interested in the order they requested the preorder.
7. Preordering is done under the understanding that the bonds will not be immediately resold.
8. Preorder request can be done by either posting in this thread or sending a PM.