Dear RLT token holders,
Today we all received an email about voting for proposal to change dividend distribution system.
I call on everyone to vote against this change.Here is the proposal:
it is planned to change the dividend payment system with the distribution of dividends in RLT tokens, which will be purchased at the average weekly exchange rate and distributed after the purchase
I have a few questions about it:
How is it possible to purshase tokens at the average weekly exchange rate?Everyone who tried to trade at stock exchanges knows it's impossible just go and buy something there at some specific price. You can place buy order on this price, but it may never be fulfilled. If you need to buy some currency as soon as possible, you can place taker orders and buy at the price other people asks.
In any case, such large purchases, especially when their time and volume are known in advance, cause a temporary price increase. Thus,
we will get fewer tokens than we could buy buying them ourselves. Also those who need dividends in ether will go to the exchange to sell received tokens, price will drop and
they'll get even less ether.
The mechanism of the distribution amount distribution itself won't be changed. If the required number of ethers is accumulated on the gaming contract balance (at the moment it is not less than 50 ETH), this amount will be sent to the exchange by creating the orders for the purchase of RLT tokens. The initial price is expected to grow by several times and in the future will be calculated from the weekly average exchange rate. Immediately after entering Bittrex, the cost of RLT will increase, which will not only increase the value of dividends for token holders, but also create favorable conditions for its sale. The distribution of dividends in the form of tokens will be produced after the completion of the order. In the event that a change in the price occurs during the purchase of tokens, the rest RLT will be purchased at a new cost. Owners of tokens after adding it to the exchange will also be able to make a sale for a favourable price.
How this weekly exchange rate is going to be determined?
To calculate this rate we need a log of all trades. I have some doubts that Bittrex is going to provide such log. If not, why should we believe their version of this average price? And what if other exchanges decide to list RLT, how can we consider their trades?
Calculation of the average value based on the minimum and maximum prices can be made by each user according to the exchange scale.
Also, why it is weekly exchange rate? Not monthly or daily, not the rate based on all trades from last dividend distribution...
We chose weekly period based on the fact that at the moment the distribution of dividends occurs on average basis once a week. In the future, as the activity on the site and the frequency of the distribution amount accumulation increase, this parameter can be changed.
Nice elaboration.
I wish every investor and supporters will appreciate the necessary cheange nedded to be implemente!
giving us all those details.