Topic: [CLOSED] S.DICE - SatoshiDICE 100% Dividend-Paying Asset on MPEx - page 35. (Read 316442 times)

It can be both ways. Let the users choose how they roll.

As soon as I can.

Doesn't SDICE already have a test server?

The expenses deserve explanation, my apologies.

Hosting/Tech
Self-explanatory. It runs about $500-$1500 monthly. There were recently some additional costs here as we changed hosts twice (once because the host was unhappy with the gambling aspect, the other because the host couldn't handle DDoS). Hosting is now done by more than one company.

Head IT April
This is the former head of IT. He is being replaced (for mutually agreeable reasons), though April/May will likely have overlapping costs as he continues consulting and monitoring the system. I'd rather pay two people simultaneously than be without proper skillsets in an emergency.

Systems operator
This is the new head of IT. Unlike the former one, he is full time SD. He's currently rebuilding much of the code, making it readable, documenting it, etc. He's also building a test server, and will then be building new features.

Legal
Self-explanatory. There will likely be ongoing legal costs for SD. I'm working with a lawyer near Seattle, one in Panama, and one in Toronto.

IP Rights to SatoshiRoller
Mentioned in my previous post. This was a one-time expense to own the rights to the desktop and android client IP outright.

As a heads up for next month, there will be a small cost for a PR/customer service person being brought on board as well as a one-time expense for sponsorship at the San Jose conference.

Someone already did

When will you be adding some kind of user accounts on the website, and instant betting? If you don't, someone else will...

The IP cost mentioned in April's expenses was a one-time fee paid to the developer for all future rights to the IP of the apps. It is not a recurring cost.

I had previously paid for the apps to be built and used by SD, but not the rights (this enabled me to get an attractive price). I have plans for the apps, thus I wanted to close this loose end.

Litecoin offers no significant benefit over Bitcoin. I don't care to integrate it simply because lots of people are bidding it up. I believe that to be temporary.  I'm happy that there are cryptocurrency competitors, but LiteCoin doesn't excite me.

It's not clear whether it's per month or whether SDICE has now bought the IP of that desktop client outright.

You will never see a dollar sign in Erik's reports.
To avoid the risk of prosecution, he put a barrier between the BTC and the dollar.

+1 for non-voting share : take it or leave it.

Obviously a minimum of information is necessary, but it was provided last week by Erik +  a crystal clear monthly rapport
Be sure that wages are capped in dollard, in 2 directions.
But safety first no dollar sign in any rapport.

Some expenses are based on USD value. Others could be a fixed rate, or a percentage of profit (couldn't find any details on them, but then again I didn't look too hard). That's up to Erik to decide and fill us in on (not disagreeing with you on that).

And I know it hasn't been rewarding (at least long term), and as the price in BTC increased I figured that may be the case in the end. I sold near the peak and bought again when it was quite low...and then sold again recently. Profit-wise, I'm fine...and I'm thankful I didn't buy and hold (even though, in a financial sense, I'd very much like to).

No, for THIS month, we don't know if the expenses are contracted in USD terms or BTC. If for example BTC rise to $1000, then monthly profit will probably fall to 500 BTC or less range, how would you like half of shareholder profits are eaten up in "expense"? Being a S.Dice shareholder was not particularly rewarding recently, wouldn't you agree? your S.Dice share price is 50% of 2 month ago.

Disclosure: Those expenses account for less than 5% of gross profit for the month...though transparency would be nice, EV has no obligation to provide such information. I owned more than 20k shares in S.Dice...if you don't like the way the company is run, sell your shares.

Let me break it down for you all:

For April:
Earnings   3813.93462751   btc  (yay loot)
Hosting/Tech Expenses   12.2   btc  (the only real expense)
Head IT April Pro-Rated   52.945   btc  (money paid to erik for running sdice)
Systems operator   91.7   btc  (money paid to erik's buddy for "advice", with possibly kick back to erik)
Legal   25.51   btc  (money paid to erik for running sdice)
IP Rights to SatoshiRoller   40.46   btc   (money paid to erik's shell company PER MONTH for creating a piece of shit desktop client that nearly nobody uses)
Loss Carryover   0   btc
---------------------------------
Net Profit   3591.11962751


Disclosure: Just a joke, but we need more transparency and detail about these "expenses" and they seem to be pretty high. I own more than 30k shares in S.Dice

Thanks, I wasn't aware of that. I thought it was part of the Satoshi dice website.

Still IP rights can make or break a company. Think Microsoft who kept the IP rights of the operating system made for IBM. IBM used all his fame and wealth to promote and spread it but Microsoft ended up getting the fruits.  

I'm curious to know how this IP deal is setup.

It should also be considered by shareholders that this client has shown how it makes the business much more resilient. For example, when the domain expired and was taken offline bets continued to be processed. Most likely some of those bets were processed through the custom client interacting directly with the blockchain without needing the domain.

Well this is quite a different thing, and probably legitimate. The OP was going off the appalling deep end etc.

@miscreanity what you say is true, the operator is not obliged to answer; still, in general transparency is a good idea as much as practicable.


Because as miscreanity explains MPEx shares are non-voting, the operator is also required to maintain 50% of shares in his possession at all times. This means that only the dividends paid to half the shares are actually reported by MPEx, as for instance:


This system allows the investors to verify each month that no excess shares are floating on the exchange.

The 3591 satoshi per share figure is consistent with the total profit (3591.1196275 BTC) divided by the total number of shares (100,000,000). The total dividend paid out (1,795.55981375 BTC) is consistent with the sum due to 50,000,000 shares.

Dooglus lists total income (3760.48177700), from which some expenses have been subtracted, discussed above.

Hi!

Could somebody tell me what the relation between SD profits and its dividends on MPEx is?

Looking at what dooglus posted
and what shows up on MPEx
I don't see the connection too clearly, as the ratio has changed : 445 / 1166 is not 1795 / 3760  

Thanks in advance!

Yes, transparency is a key factor of investment, but SD shares are non-voting.


Source: MPEx SatoshiDice prospectus

The policies of the business therefore remain the matter of the operators, not the shareholders. Whatever disclosures are made will be done so at the discretion of said operators; it effectively remains a privately-operated company.

If there is disagreement with how SD is being run, the available options are to either not buy shares, or sell currently-held shares. Discussion regarding SD is an entirely separate matter; i.e. existing shareholders weigh the benefits of holding vs. selling without having say in how the business is run, while potential investors analyze the past, present, and future value (including deciding whether surrounding discussion is legitimate or superfluous) to arrive at a decision.

As for the custom client, does it afford a direct method of acquiring BTC through BitInstant? Such an app might even have an easier time passing Apple approval, since it wouldn't involve an exchange, but simply an in-app purchase. Also, while a Bitcoin exchange rate increase might be detrimental to the Bitcoin-denominated SD share value, I see a custom client having the potential to grow faster than the deflationary effect - at least for a little while after the client hits a full-featured production release.

The problem is when new expenses pop up without an explanation. Why was the IP rights charge only applied this month? SatoshiRoller was introduced months ago. How are you calculating the services / fees paid?

This is about transparency, not about wanting satoshidice to run off no expenses.