FAQ: Could you provide me with a simple scenario ?
April 14, 2015
hey johan, can you provide me with a sample scenario, with a couple of people, their transactions and the actual numbers (dividends and dividendRates)
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
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