One of the main drawbacks for a lot of AGS supporters is the inability to get out of this investment. And while many people think and (hope) AGS will be made liquid one day (soon, sometime…) the reality is that in most likelihood it will never happen. I myself will be more than happy to be proven wrong on that, but trust me the chances are slim to none.
I have been working on an idea to give such investors (myself included) the liquidity we desire.
Let be clear from the beginning – the AGS will remain transferable. This will be another product:
- that is on top of the AGS
- will try to as closely as possible match the benefits of investing in AGS
- will be tradable – it will have market determined price and every moment one can enter or exit from its investment as she chooses.
I have worked on some implementation details but they are not the important part right now (I think). So I will put out the general idea here for everyone to contribute. EVERYTHING is open to debate and change:
- The LAGS will be a fund, or joint investment group if you like, that will have 25,000 shares. Each share will be targeting to represent 1+ AGS share. (50 days in the open-end period x 500 new shares per day).
- The LAGS fund will issue its shares on NXT AE. Every effort will be made the fund’s shares to be move to Bithsares ME when the platform is available (if such move is feasible and economically beneficial) – NXT AE is the best place that I know as of now – (I am open for suggestion to move it to whatever place is best, if better alternatives exist)
-Daily ‘new’ shares sales: The target is every day (of the open-end period i.e. 50 days) at predetermined time (say 2 pm eastern time) all existing buy orders for price >= 0.8 of the highest bid (highest buy offer), and not exceeding the daily max new shares (initially 500, adjusting depending on the demand every day) are fulfilled by ‘new’ shares of the fund.
-Daily shares buybacks: The target is every day, except the first and the last (of the open-end period i.e. 50 days, excluding day 1 and day 50) at predetermined time (say 4 pm eastern time) all existing sell orders are bought back. The fund will start with adding 30% of the day’s new shares sales to the buy-back fund. The amount will be adjusted based on the volume of sell-backs.
-Initially 75% of the money received from that day’s new shares sells will be invested in AGS. Simple rule will be used for the amounts invested in a form of PTS and BTC respectively. (The current model calculates the average BTC and PTS invested in the last N days, and uses this ratio together with the PTS/BTC price to determine the more favorable offset from 50% BTC / 50 % PTS)
- The fund will certain percentage of the new shares sales revenue for expenses and fixed management fee (currubtly 2.5% for expenses and 2.5 management fee are considered)
-After ( and during) the open-end period all shares will be tradable at prices determined by the market.
-Whenever shares from new DACs are distributed to AGS holders, the LAGS fund automatically distributes the shares received to LAGS shareholders.
Liquidity one AGS investments!
Risks and Drawbacks:
-The biggest risk of course is ‘whether the fund is going to fulfill its obligation/promises, or you gonna end up losing all invested in it’. That is off course the biggest issue of every one offering something on platform like NXT AE, Bitshares Me or any similar venue.
- It is obviously more efficient to invest in AGS directly (no fund expenses) but then again the projected price seem very reasonable for the benefit to have your investment in AGS liquid.
Fire up: What you like, dislike, any suggestion etc. are welcomed.(also what amount you would – as it will help me greatly in determining the size of such LAGS fund)
Feel free to give me a tip to the address below, to use in staring the LAGS fund. (Just drop me a PM to know if you did as well as if you want/do not want public acknowledgement)