Hello SPIers, today we look into "What if SPI created a new SPI token" to increase its supply and fund value. This is an idea that is always in the back of my mind and I rarely talk about it but today, let's share the idea and get some feedback.
SPI's current hardcap and how we get there
It was my plan from the start to have 1 million SPI in circulation but I soon learned that 1 million is a really big number and I'd bitten off more than I could chew. Selling 1 million was an impossible task when I think back knowing what I know today. SPI was one of the first investment tokens on HIVE and there was no trust within the community for HE tokens, I was fairly unknown outside the stacking community and for the first 1 year most thought SPI was a scam and going to rug pull.
It took 8-9 months to sell 70,000 SPI and then we hardcapped at 100,000 when we moved from STEEM to HIVE. We did a token split and revalued the token back to 1 HIVE. (1 STEEM SPI = 1.25 HIVE SPI) to get to 100,000 circulating. Currently, the circulating supply for SPI tokens is 94,000. This comes from 100,000 being created and 6000 being burned from buybacks.
Creating a new SPI token to increase the hardcap
The Goal
- To at least double the size of the SPI fund within the next 2 years. We would create a new token and sell it with no limit. SPI does not need to be hardcapped for any reason because it is 100% backed with actual assets. The secondary buying/selling demand has no impact on SPI's book value.
2 ways to do it
- 1/ Create a new token to replace SPI
- 2/ Create an additional SPI token that is pegged to the current SPI
If any new SPI token were created, we'd revalued SPI back to 1 HIVE and current investors would receive an airdrop of new tokens. The revaluing back to 1 HIVE is not required but from experience, people will invest more into tokens priced at 1 HIVE compared to 5+ HIVE as the price stands today.
Option 1 seems best at first glance but it would require a rebranding because the flagship token would no longer be SPI, it might be HPI are something simular. This is messy because what do we do with current SPI tokens? This would require us to create a new token, revalue the new token to 1 HIVE and transfer new tokens to current SPI token holders. SPI tokens today are worth around 5.50 HIVE each so if you hold 100 SPI's today, you'd receive 550 new tokens.
Option 2 is much cleaner because we could keep our current SPI token, no rebranding would be required and we have more options when it comes to distribution. We would have the option to either
- Revalue current SPIs and new tokens to the same value. Valuing both at 1 HIVE would result in current SPI token holders receiving 4.5 new token for each SPI they hold. (1 SPI + 4.5 new token). SPI tokens would be valued the same as new tokens but holders would receive a some bonus like a founder's yearly bonus to give an example. This would be a reward to those that were in from the ground.
- Keep current SPI valued as they are and peg new tokens to 1/5 (20%) of SPI's value which would be 1.1 HIVE each.
Personally, I like the idea of keeping the current SPI as they are and creating a new token that is 20% pegged to SPI tokens. This would let us sell new tokens at 1 HIVE each and raise more funds for SPI. This way would also let us run as we are without interruption to current operations.
Why would we want to do this? and why now?
- To increase the overall fund value
- To let new investors get involved
- To liquidate current SPI whale allocations
We do this because we can. 5 years ago, SPI had no reputation, no proof of concept and most thought it was a scam. These days, it might be easier to raise funds based on our amazing 5-year track record of pumping investors' bags and being transparent through weekly earnings and holdings posts. I think I have shown im capable of managing others' funds through strategic investing, being consistent, transparent, being able to execute a plan and having excellent results to date. 1 HIVE invested into SPI at launch would be worth 7 HIVE today which is a 13x gain in terms of $ based on the average SPI selling at 17 cents. I dont do magic but I dont do stupid dumb crap either which is where most fall. Every cent is a pensioner.
Why now? It's the best time. I know you'd think during the bear market is the best time to raise funds and on paper, you'd be right because its the cheapest time but in real life, people are broke during the bear market and dont buy crap. Most people invest the heaviest during bull run years when they are making money hand over fist from every direction. Another reason is, SPI is very HIVE heavy right now meaning the token price is more stable than it normally is making it easier to issue token at a set price.
What would we do with the raised funds?
Invest them as we have before. Any funds raised would be absorbed into SPI. Most would be powered up and remain as HIVE because HIVE is currently very cheap and worth holding as we head further into this bullrun.
Would increasing SPI tokens supply liquidate current SPI holders in any way?
No, not at all. If you hold 500 HIVE worth of SPI before any new token, you would hold 500 HIVE worth after. The only liquidation that would happen would be whale allocations over the fund. I personally own 19% of SPI tokens worth X amount of HIVE, if we could double the fund buy selling new tokens, my allocation would shrink to under 10% of all SPI but still be worth the same X amount of HIVE.
What is your feedback?
There's a small chance we will do this but it would be cool to hear some feedback from token holders who are people who are reading this post but dont hold SPIs.
To be honest it would only really be worthwhile if we thought we could sell at least 100k HIVE worth. I think back over the past 2-3 years and the number of people that say, I missed the boat on SPI and dont invest because the token price has already increased. By putting the token value back to 1 HIVE, people think they are getting in on ground level again. It's crazy how people think and for most "How many can I buy?" is more important than "What is the value?".
I've always said from the very start, invest into SPI with a long-term view. I believe SPI tokens will perform much better over the next 5 years compared to the first 5 years because we have 5 years of knowledge built up and solid foundations already in place.
Getting Rich Slowly from June 2019
| Token Name | Main Account | Link to hive-engine |
|---|---|---|
| SPI token | @spinvest | SPI |
| LBI token | @lbi-token | LBI |
| Top XV token | @spinvest | XV |
| Eddie Earners | @eddie-earner | EDS |
| EDS miners | @eddie-earner | EDSM |
| EDS mini miners | @eddie-earner | EDSMM |
| DAB | @dailydab | DAB |
| DBOND | @dailydab | DBOND |
Stay up to date with investments, and fund stats and find out more about SPinvest in our discord server
I think it is a great idea! Option 2 would be my choice. I like the idea of keeping the original SPI token around and a little bonus for us founders. 😀 👍
It is difficult to modify the token at this stage because the actions are in progress and will only come to fruition in 1 year or maybe 2.
If we want more liquidity and a lower price we can make an SPI worth 10 of the new name HPI.
Otherwise a new HPI which starts from scratch and which pays royalties to SPI like the other tokens. No ?
Not that hard really. Would be like EDSM and EDSMM, 2 different tokens with different prices doing the exact same thing, same yield per HIVE invested. Starting from scratch with a brand new token that feeds into SPI would not increase the SPI fund value. Funds under management, yes.
Remember when we had the "royalty token?" Basically it was a token that was worth 100 SPI tokens. The point of the token had something to do with selling it back, and it taking longer to do the 95% buyback which would give the team time to find the best asset to sell to pay the token holder its money.
My issue with this proposal is the buy back. SPI offers to buy back the token at any given time and will pay 95% of the token value. If we open it up again and we get a bunch of new investors it means that there are more people available who want to sell the token back.
Most of us who HODL these tokens see the value in them and are not apt to sell the token back anytime soon - so we CAN HODL Bitcoin for long stretches of time. Will the new investors have DIAMOND hands as well?
Perhaps SPI2 aka HPI, a new fund that basically works the same, is sold at ONE HIVE. That way we know we have the OG investors who HODL long term, and we can use the original fund to buy Bitcoin and long term assets. Then we wether the new investors' and see if they HODL like the OG's do, or sell willy nilly.
The royalty token yielded 1 SPI per month to holders, nothing to do with buybacks from what I can remember. Buying back tokens has never been an issue for SPI.
Releasing a new fund would not increase the fund value of SPI and I'd end up running 2 funds exactly the same. My suggestion would be to keep SPI as it is and release more like a SPIL (SPI lite) token that is pegged to 1/5th of SPI tokens. It would be like EDSM (10 hive) and EDSMM(1 hive), both are the same token just at different prices.
It would be fairly easy to do, the main problem I have when I think about it is, it's a 1 way decision.
OK - I remember HODLing the royalty token and remembering that sell backs were locked in for a certain amount of time - but we're both going off memory here so who knows what really was.
I'm still concerned about the buybacks - I remember being in discord for a few conversations where I would read comments like: "I hope no one tries to sell back anytime soon." We knew the money was there if anyone wanted to buy back - but we didn't want to undue some of the buys we had just made.
At the end of the day though, more money to play with is more money for us to grow rich with... slowly, as a group. It also gives the administrators the same amount of percentage in payment, but since its more money it pays them more, which keeps them likely to keep doing the work for relatively cheap.
Concerned about buybacks or not, I'm ready to buy more SPI, OG or light.
But also, I'd like the idea of investing more with this team. I'd probably buy a couple hundreds dollars worth, if not more, depending on how long the sale went on for.
i think its a good idea to increase the amount of tokens in circulation, get new funds, and increase liquidity
ill be up of buying more SPI, cause now its impossible
Definitely sounds intriguing and would certainly be interested to grow holdings and the fund even further... probably would either wait until we liquidate XV earnings in June 2025 or could send USD via PayPal like I think we did maybe once back in the day when buying SPI in the early beginnings
I like Option 2 best. I missed the boat to get into SPI cheap, so I wouldn't hesitate getting into a new token pegged to SPI.
along with most feedback im seeing from folks chiming in, option 2 appears most intriguing to me as well. There are some folks trying to buy SPI in the open market at current but it is indeed very difficult because hardly anyone wants to sell. SPI being so hard to get right now does mean it would be a perfect time to do something like this. It also appears there would be some newer investors to potentially take advantage since they missed the boat in the early phases of spinvest. Since the fund has proved its reputation and also does what it says it will, it would be my hope that people would trust and get involved in something so steady and consistent with a track record to prove every step along the way