Topic: Lab Rat Data Processing, LLC (LabRatMining) Official Announcement - page 232. (Read 452224 times)

As a little share owner (~40 shares  ) it's ok for me to have the dividends "stabilized" for 2 weeks if it bring more hashpower at the end.
And btw I would like to thanks LabRat because he is doing the things well, little bit more "homebrew" compared to "big IPO". But he gives updates, answer to questions and mostly he is hashing and paying dividends Ok it's not that much yet ( in comparaison for 1 share you got the hashpower of a decent computer for now but not with a great gpu) but it doesn't cost electricity and it will grow.

+many!

LabRat has indicated that the 2 weeks of dividends will buy much more hardware than the difficulty erosion. In my opinion, when he runs across available hardware that will (for the price of 2 week's worth of BTC dividends) overcome the difficulty increase, electrical cost, and management fee, he should pull the trigger! His bulk buying power affords LRM the opportunity to buy hardware at a very aggressive price. That hardware availability is almost never linear. It happens in fits and spurts. He may need to plunk down $100K or more at one time. The dividends taken each week drains the fuel tank. Sometimes, LRM will need to ask for a deference of dividends in order to have cash on hand. As long as LRM is transparent about this process and as long as LRM shows both need and expected benefit, I am all for it. LRM essentially has to keep ahead of the difficulty increase longer than the competition. LRM will do that with aggressive hardware purchases, low operating costs, and plenty of good faith. My only request is that LRM demonstrate good faith by being as transparent as possible. Transparency will provide more investors, liquidity, bond value, and long term stability. Transparency regarding online hash rate would be a great start. This alone will show most skeptics that LRM is not a Ponzi.

Dave,

https://bitfunder.com/assetlist

This URL shows every bitfunder asset with the associated BTC address of the owner. LabRat will
always know exactly who owns what in his fund.

Thanks,

Rustyh17

Hi all,

I have a question concerning BitFunder. I seem to remember a post somewhere which talked about what happens if bitfunder closed down (something about LabRat having an audit trail of email + number of shares).

Can some one point me to this information?  This is the one thing that is stopping me from investing further.

Cheers

Democratic Republic Of Dave.

I understand your point , I think depending on the need justified , whole LRM community will have to make collective decision as & when need for such action arrives. 

I don't mean to imply that Labrat intended to do this with all newly acquired hardware. I was commenting my view that it should be done, at least some, to help the company self-sustain. Let's assume realistically that he takes out ~10% for electrical costs + his fee from the 25% slice of all mining. Would a 15% re-investment be enough to overpower difficulty long term? It doesn't' seem like it would work well short term if there are far out shipping times. Sure, difficulty will slow down eventually - perhaps to a linear incline or maybe even average out flat - but it will also pop up it's head again eventually (if you use history). It sucks for dividends, but this is why the two week dividend re-allocation for new hardware should be done, imo. Perhaps, not always, but at least in certain times. But Labrat at least has his reasons for doing it now. I could be wrong, but it doesn't seem like it can work out without more re-investment. A good mathematical model showing this would be nice to see, but it would probably be difficult to factor in some of the several uncertain variables.

So, you're claim is that everything I wrote requires a prior conversation with Labrat in order to not be speculation? Well, it simply doesn't follow. Most of what I wrote was either an opinion or observation. There might be a speculative facet to one or two things I commented upon, but certainly not all.  So, try being more specific.

Yeah I think there is some misunderstanding with regards to whether dividends from every batch of new mining gear are used for future funds or is it only for october Bitfury gear only  , as i understand this arrangement is for October delivery of Bitfury gear only.

Have you contacted LabRat about the plan and details about it ?
If not...all speculation here.

Transparency would be nice, but dividends as a measure of transparency is no better than the periodic "interest" received from a ponzi scheme. Personally, I think Labrat should point all of the hashing power at BTC Guild, and enable the namecoin mining option in their pool.  It would allow investors to track the rate, and add an extra 2%-3% return OVER what would otherwise be generated. LRM needs all it can get at this point. It would be nicer to have a pool that has merged mining and zero pool fee's.

Regarding LRM's growth plan:
Some seem to think future bonds sales are a way to achieve sustainability. Personally, I loathe the idea that growth would depend on future bond sales. That would be more like a ponzi scheme than any self-sustaining business model. So, it appears the two week dividend cuts for new hardware will need to happen for all future hardware received. Otherwise LRM would shrivel up like a raisin, or depend on future bond sales.

Some clarity for investors, and I hate to have to say this, but the two weeks of mining with no dividends will not necessarily place LRM in a more advantageous position than was already estimated for this year on the LRM website. The best chance, as far as I see, to beat the prior estimations is to actually receive Monarchs before the end of the year, OR to sell out of that Monarch order and purchase Bitfury hardware (asap).

For those that agree the Monarchs are not a good thing to wait for... Send messages directly to Labrat to ask that selling the Monarch order be one of the top priorities.

Just posted this on the BFL forum in response to a question and thought it was worth reposting here for clarification of future questions:

Dividends will not stop at all, and shouldn't even go down. What will happen is that when the large shipment of BitFury gear arrives, instead of instantly seeing what will be a huge boost in dividends, this boost will be seen two weeks later, with the coins mined in the meantime going towards reinvestment.

So there will be no stopping of dividends at all, just a two week delay in when the big jump comes. And the big jump from the resuming of normal operation will not come on Oct 12th, or any date exactly, it will be two full mining weeks after whenever the BitFury shipment arrives at LRM.

I hope that makes everything clear!

Fair enough, I didn't realise there was that little pointed at the other pool. And of course it isn't proper transparency, I just thought it would have to suffice as the split was going to make it impossible, but if the split is in that ratio then what you are suggesting is indeed possible, and would be nice to see!

+1 twmz

Dividends are not transparency.  Transparency is being able to independently confirm the hashrate throughout the week to validate that the dividends match approx what they should have been.

And with only 0.7 TH/s pointed at James' pool at the moment, there should be 3+ TH/s on btcguild (unless there is a third pool in play) which should be enough for it to appear on the leader board.  That will be even more likely to happen if additional hash power gets added soon.

Unless most of the current hardware is pointed at BTCGuild it won't show up on the leaders board I'm afraid.

Although not ideal, transparency does at least come once a week in the form of dividends...

Whats the current hash rate. Last update on labratmining.com was from 9/8/13.

I will wait for him to give an official announcement as I don't want to put my foot in anything, but my understanding was that the turn around on these particular coins being turned back into hardware would be surprisingly quick...

Until the situation changes, can you please share what the Lab_Rat user ID is on btcguild (as shown on this page: http://www.btcguild.com/index.php?page=rankings) so that we have some transparency on hashrate?

Just for the record, I finally decide that it was for the better good and vote yes (like it matters what I think, lol). One question, when will the funds be able to purchase the equipment? are we looking at purchasing it in october but have to wait til jan or later to receive the equipment? Im hoping that it will be a quick turnaround not in bfl time, either, lol....

Zach, It would be great if you gave everyone as much info as you can, like how many coins are anticipated? and timeframe for receiving the miners from those dividends....