Like the other Assets I've issued, this one is a straightforward alias Asset. NFDMMNxt will be backed 100% by a
dedicated Nxt account holding enough MMNXT for the NFDMMNxt holder to redeem it for MMNXT on demand.
But there's a twist to this one! MMNXT is a Nxt Asset that runs a series of tradebots on the Nxt Asset Exchange and arbitrage bots on Bter, Poloniex and Cryptsy. Ever since its bots started trading, it's paid a dividend once per week without fail. You can read up on it in its
official thread on the Nxt Forum. As an alias Asset, NFDMMNxt will pass through all MMNxt dividends from its holdings to NFDMMNxt holders. Dividends from this stream will be paid on the day MMNXT sends the dividend to the holding account. They will be paid in NFD at a rate determined by the ratio of Nxt's price to NFD's low ask at the time I send out the pass-through.
However...that's only one of the revenue sources for NFDMMNxt dividends. In addition to the once-a-week pass-throughs, I'm going to be paying a second dividend per week from another revenue source: spread-trading MMNXT itself on the Nxt AE.
To facilitate this, I sent 5000 of my own Nxt to the
NFDMMNxt_Dedicated_Account that I'm using for the spread trading. This Nxt is my own: in essence, I'm "leasing" it to the NFDMMNxt Asset. Any profits I make on the spread trading, net of all fees, will be summed up each Sunday night and sent out to all NFDMMNxt holders as a second weekly dividend. Like the pass-through dividend, these will be paid out in NFD at the prevailing ratio between Nxt's price and NFD's low ask.
So if the spread trading works out, NFDMMNxt holders will get two dividends a week!
To keep track of the profits and any losses, I've set up a spread-trading ledger that
you can view on the Web. Each transaction is numbered and linked to NxtBlock's block explorer. You can audit my ledger at any time by going through the Transactions of the
NFDMMNxt_Dedicated_Account and the trades of MMNXT as shown on
MMNXT's Asset Explorer page at NxtBlocks. Just look for the trades that Nxt Account
NXT-QQKJ-SWLJ-CPX4-3QXXW has been involved in, and you can audit every entry in
my public ledger. The rightmost column is the Running Total of accumulated Profits or Losses, which I'll zero out on Sunday night when I send out the spread-trading dividend.
If I get unlucky and the week's take is a net Loss, I'll pass that week's second dividend and use further Profits to while down the accumulated Loss until it zeroes out.
The pass-through dividend from MMNXT will be paid every week in full regardless of how my spread-trading works out.So: as a holder of NFDMMNxt, you're guaranteed to get the NFD value of MMNXT's own dividends no matter what. The Sunday spread-trading dividend is an add-on. If I prove to be a hapless spread-trader, I'll just burn through my 5000 Nxt.
I will never buy or sell the 25'000 MMNxt that backs this Asset. I'll only Transfer them out to fulfill a redemption request.
Each time I send out a dividend, I'll post a report on this thread. The spread-trading dividend, if any, will be accompanied by a brief commentary about the MMNXT market in the Nxt Asset Exchange over the week.
Unlike my other Assets, I'm offering the entire issue of this one at a static price:
3300 NFD per unit of NFDMMNxt. This price, I came up with by using a ratio of 3000 NFD per Nxt and 1.1 Nxt per unit of MMNXT. Both ratios are in line with current market prices with a bit of give for fluctuations. However, I reserve the right to change this price if these ratios change significantly.
Here's the summary sheet for NFDMMNxt:
NFDMMNxt ASSET DETAILS:NAME: NFDMMNxt
ASSET ID NUMBER: 7008598312490387994
ISSUING ACCOUNT: NFD-T4MX-HYMV-2J6M-AR9KM. Balance inspectable at the NFD Block Explorer.
NUMBER OF UNITS: 25'000
BACKING: Dedicated Nxt account NXT-QQKJ-SWLJ-CPX4-3QXXW. Holdings of MMNNXT identified at bottom of block explorer page.
BENEFIT: Each unit of NFDMMNxt is redeemable on demand for one unit of MMNXT from the backing account, sent to the redeemer's choice of Nxt account. In addition, each holder of NFDMMNxt will receive dividends paid in NFD from two sources: MMNXT's own weekly dividends, passed through, and any profits made by spread-trading MMNXT on the Nxt Asset Exchange. The pass-through dividend will be paid within a day of its receipt into the backing account. The spread-trading dividend, if any, will be paid out each Sunday night Eastern time.
PRICE: 3300 NFD 2030 NFD per unit. See here for why I reduced the price.
If you want me to prove I have control of the Asset Issuer account NFD-T4MX-HYMV-2J6M-AR9KM: just send me your own NFD Account ID and I'll send you an Arbitrary Message that'll prove it's my account. If you don't have an NFD Account, just download a new wallet here.
Feel free to ask any questions you have, and thanks for reading.
FYI: Because MMNXT and NFDMMNxt both pay dividends based upon spread trading, they're technically securities. That's not a worry right now, as both are too small for the SEC to be bothered with, but please keep in mind that there's a "regulatory risk" associated with this Asset.
