I am going to be converting BFLS shares into BFLS.RIG at 1:1, so everyone will in one payout bucket.
A single payout bucket is welcome but I have a concern about the proposed 1:1 conversion: as commented on earlier in this thread (
https://bitcointalk.org/index.php?topic=89902.msg1255003#msg1255003), a 1:1 conversion does not appear to represent fair value for BFLS shareholders. Unlike 'regular' mining bonds such as Gigamining, BFLS and BFLS.RIG represent a share of
hardware, not
hashrate, so:
BFLS (1 Single/200 shares): $600/200 = $3 per BFLS share
BFLS.RIG (1 MiniRig/6058 shares): $15295/6058) = $2.52 per BFLS.RIG share
This indicates that a BFLS share is worth more ($3/$2.52, or 1.19x) than a BFLS.RIG share. Put another way, 5098 BFLS shares ($15295) are worth the same as 6058 BFLS.RIG shares ($15295) which is the value of 1 MiniRig.
So to fairly convert the hardware value of BFLS into BFLS.RIG,
1 BFLS share should be converted to 1.19 BFLS.RIG shares. A 1:1 conversion would mean that BFLS shareholders take a 19% loss. If my analysis is flawed, I'd like to know where it fails.
The mistake here is assuming that a mini-rig is worth $15295.
At the time when the devices were bought, $15295 didn't get you a mini-rig. It got you a mini-rig to be delivered
several months in the future. An actual mini-rig in your possession is hence worth much more than $15295.
At the same time $600 would get you a single within a few weeks. So a single is worth more than $600, but not by much.
Before there are ASIC upgrades, the 1:1 hashrate conversion makes sure that holders receive the same payments before and after the merger (as output is proportional to hashrate).
While the upgrade plan does not take this into account, the fact is that buyers of BFLS.RIG had to wait more before getting payments; this should be compensated by an increase in the credited value. The most natural objective measure by which to compare the two is the hashrate.
The only question remaining is how much of the new ASIC devices will a BFLS.RIG share get you.