Quote from: xe99 on May 18, 2014, 07:41:06 PM

I was wondering if someone could clarify a couple things i'm still confused about? i have not been following PETA or CryptX and have only been lurking past couple days after Havelock announcement. I'm new to difficulty and mining as well so forgive questions if they are overly elementary.

After reading the recent update on havelock about the upcoming ipo offerings and reading back the last half dozen or so pages of this thread...i am confused still when dividends at 15/GH will start being paid back to investors?

forgive me if this was obvious somewhere and i simply missed it but so far i havent come across a concrete answer.

from the information iv'e come across on the chart posted a page or so back, it seems this happens after all ipo shares have been sold. at this point dividends to invest are zero and i assume start to be funnelled back to investors. what happens if they do not all sell and when is the final offering ending? whats the backup plan if not even a fraction of the final shares offered are sold?

and how do you guarantee any of this? you claim 25,000 bitcoin will be mined in a year but even a modest increase in difficulty to 15,000,000,000 which seems very likely in next couple months, you will be lucky to pull 18,000 BTC. what am i missing?

are investors guaranteed 15/GH dividends no matter what happens by a certain date? I'd like to invest a little bitcoin but so far some things not adding up for me.

thanks for any help answering these questions.

My post further up covered this a bit. The chart you are looking at has a category named Dividends to be paid after IPO or something along those lines. What that number is is the total amount of dividends CryptX will not payout to shareholders and instead use them to pay back the company he bought the hashing power from. It also doesn't show what happens if 0 shares are sold and that is 1957 BTC worth of dividends to be withheld. So when will the dividends start being paid back to investors? After CryptX pays off all his debts is the answer. We can do a quick estimation that is extremely optimistic at the time frame of when you will start to see a single Satoshi paid out to investors right now.

200 BTC was mined last week so tripple hash rate means triple the coins to 600 BTC expected to be mined. 25% is still gone to hosting fees so that leaves 450 BTC left to be paid out as dividends and reinvestment. But what CryptX did was force all shareholders to give up dividends to pay back the company so it's now 100% reinvestment.

Best case scenario and what you should all hope happens: All 33k shares are sold in this IPO and dividends start to be paid out next month.

Worst case scenario no IPO shares are sold and shareholders are stuck with the bill and must pay 1957 BTC. 1957 / 450 = 4.34 and that number is the amount of weeks until the hardware is paid off from shareholders. It will take just over 4 weeks, but remember this is an optimistic calculation as it doesn't take into account the difficulty increase that will happen. That is 4-5 weeks AFTER IPO ends for a total of 6-7 weeks.

If 1 batch of 10,000 is sold only 1007 BTC need to be repaid and that will end up taking 1007/450 = 2.23 weeks of no dividend payments to pay back the company. But again overly optimistic because it doesn't take into account difficulty rise so in this case it will take 4-5 weeks total to start seeing dividend payments again.

You can see that if all the shares are not sold how bad this will be for shareholders and how outraged you should be about CryptX forcing the bill onto holders via holding dividend payments. But he still gets his 25% hosting fee for his pocket. Start asking questions as to why shareholders have to foot the bill and not just use the 35% reinvestment like how the prospectus says. Ask why there was no shareholder vote on the change in direction of the mine when the prospectus says shareholders have voting rights and a few paragraphs away says that shareholders should vote if they want the dividend/reinvestment %'s changed. I am no longer a shareholder because if I still held any shares in this mine I wouldn't see a penny in dividends until at least a month - month and a half out from now. Shareholders have voting rights, it explicitly says it in the prospectus so use your voting rights to keep the mine how it was and only allow CryptX to use 35% reinvestment to pay back the company, not your dividends.