Quote from: pyramining on June 06, 2012, 06:11:17 PM

Quote from: btcftw on June 06, 2012, 05:24:56 PM

Also, I have a question about the 3rd point. Let's say I deposit 0.01 BTC and my referral deposits 10 BTC. Given your formula, the result is ((10/0.01)/10) = 100; The question is, am I right to take this number (100 in our case) and multiply it by the amount I deposited to get the final reward? So if there are no more deposits, my reward would be 1btc

Yes, at the end you would be rewarded with 1.011 BTC. The number calculated with that formula is the additional bonus, if you multiply * 100 you get the % that you can add to your initial 5% or 10%.

Your deposit * ((((total_referrals_deposits) / your_deposit) / 10) + 1.05 + (0.05 if joining through a sponsor))

Let's assume you deposited 0.01, a referral deposited 10, you joined through a sponsor:

0.01 * ((((10 / 0.01) / 10) + 1.10) = 0.01 * 101.1 = 1.011

...

It took me a bit to fully understand what the payout is and what the percentage winds up being. To me, it seems easier to look at two quantities, by splitting up the above formula.

First, there is the base deposit. The larger this is, the faster you earn BTC. By depositing BTC into your pyramining account you add to your final payout amount by that deposit * 1.05 or 1.1, depending on whether or not you used a referral link.

Second, there is the referral amount. By distributing the your_deposit term across the outer most parenthesis, the first term becomes total_referrals_deposits/10. This means that whenever someone deposits BTC using one of your referral links, 10% of their deposit is added to your final payout amount. Also, this increases the rate at which you get paid out (although not nearly as fast as by depositing directly into your account).

While you have received less than your final payout amount, you receive rewards as they are available, at a rate proportional to the amount that you have deposited. When you have received the entire final payout amount, the account becomes dormant.

The whole notion of percentage payout is just a nice way of representing the return, since that's how most investments list their return, but it doesn't quite grasp fact that part of the return is not based on your own investment, thus leading to people with 1000+% return.

Is this an accurate description of the payout system? Also, a couple of questions:

The FAQ states: "If any upper grade sponsor's account are complete, the % that would have been credited to him it's credited to the first active upper grade sponsor. If all upper grade sponsors' accounts have been completed, this amount will be credited to you." Does "all upper grade sponsors" mean all three of the ones immediately above you, or does it mean all of them, up to the very top of a chain?
For the total_referral_deposits in the above equation, is that only for the first-level depositors, or do you get rewarded for accounts several layers down (other than the increase in revenue rate)?
In the spirit of exploring various investment strategies, is there any drawback to the following:
From what I can tell, this strategy will give you the following benefits:
- Your entire deposit (minus the token amount) will get the 10% base return from being sponsored
- YOU get the entire benefit that would go to a sponsor (an extra 10%)
- Any people who use your referral link will increase the final payout of the account that has the largest amount deposited, which means it will pay out the most quickly
Is there anyone who can find a better investment strategy? (i.e. faster and/or larger return)

Sorry if this was too wordy. I'm looking forward to investing with this service. Thanks, all, for any reply.