are we getting close to the end of this round/reset if difficulty goes above 12,000,000,000? if i read and understood the way this fund works...if we go much above 12,000,000,000 difficulty the dividend payout will be at or under 0.0002 which would make dividend payments (if i understood correctly) not worth paying out.
No, we're actually quite a bit away. It's not the daily dividend that needs to be below .2mBTC, but the Reserve that needs to be less than .2mBTC (Reserve = 200 Days of Dividends).
The last published Reserve is 0.04809800 BTC. Since the dividends are made off-blockchain, there's no fee to pay them, but they are getting smaller.
In hindsight, I probably would have chosen a higher Final Reserve / Minimum Reserve, as this Round is currently scheduled to last well into next year. Functionally, everything would operate exactly as-is even if the last published Reserve was ten times less than it is now, but, so far it seems that exchange volume tends to wane with a decreasing NAV/U / Reserve / Daily Div.
DMS, the model upon which BDD is based, had no minimum - holders of SELL had to vote if/when to close the fund. I do think that it was a good idea to build-in a Minimum Reserve, but a .2mBTC Reserve means a daily dividend of 100 satoshi, which the market may tire of.
Ah...ok i didn't get that...thanks for the clarification. I need to re-read the first few pages again.
Couldn't you put it to shareholder vote then and possibly change the reserve to a higher minimum that would cause the fund to reset sooner if your right and traders do in fact tire of the fund if the payout would be so low? I for one wouldn't be against it so long as I had at least a month or two to exit the position I have now.