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FAQ: Could you provide me with a simple scenario ?

April 14, 2015


Michiel: 
hey johan, can you provide me with a sample scenario, with a couple of people, their transactions and the actual numbers (dividends and dividendRates)

Johan:
if person A consumes from person B for $100, and creates a dividend pathway of $100, then that pathway conveys $100 in dividends. After $20 dividends has passed through it, the pathway's shrunk to $80.

Video from September last year, 

The dividends are based on the dividendRates of: the dividend pathways, and the dividend issuer. If person B has a dividendRate of 0.03, then $3 is payed out as dividends.

See calculate_dividend_fractions() on https://github.com/p2p-safety-net-co-op-dividend-scheme/server/blob/master/connect_transaction.js

And filter_dividend_pathways_by_dividendRate() on https://github.com/p2p-safety-net-co-op-dividend-scheme/server/blob/master/swarm_redistribution.js

If 4 other people, besides person A, has dividend pathways to person B, person C, D, E and F, and two people have dividend pathways to person A, person G and H,

then the $3 is divided based on the dividendRate of person As, Cs,Ds, Es and Fs dividend pathways, and person G and H's dividends are a ratio of their pathway and person As pathway.

If C,D,E,and F all have dividend pathways of 0.03, and person A of 0.02, and person H 0.01, and person G 0.02, then the dividendRate_quota of each person is:

C:1,D:1,E:1,F:1, A:2/3, G:2/3, H:2/6

See pie chart, wolfram alpha: https://www.wolframalpha.com/input/?i=1%2C1%2C1%2C1%2C+2%2F3%2C+2%2F3%2C+2%2F6

Results:

person H gets 5.9% of $3,  $0.177, 
person G and A get 5.9%x2, 11.8%, 0.177*2, $0.354
C, D, E, F get 17.6%, $0.531

0.177+0.354*2+0.528*4 = $3


To view a network of dividend pathways, look at http://graph_dev.basicincome.co

Michiel: 
thank you!

Johan:

:)

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