What has happened?
We used to keep track of members’ holdings (voluntary shares) in a bespoke database. The upkeep of that database was cumbersome and its structure limited our operations. So in the Annual General Meeting in 2015 the coop decided to move to a new kind of database and new organizational possibilities on the decentralised Ethereum blockchain .
In the new system, member’s assets are represented on the blockchain. The asset items are now, in essence, crypto-tokens called Robyns, which represent what in the old system was called shares. Robyns also make possible a secondary market for members, as well as other new features in the future. Thy can be accessed both through the Robin Hood members page , and via 3rd party Ethereum applications.
The RobYns (voluntary shares) of the members have been now transferred from the old system to the new one. In the transfer, the value of the holdings has not changed, but the accounting has. Basically, when before the nominal value of a share was 30 euros, now the value of a RobYn is around 6 cents. So you will have many more RobYns compared to the amount of shares you had before, but your holdings and other mechanisms of the coop remain the same.
What stays the same?
In order to become a member, one still has to pay the membership fee (30 euros) and get a stake/seat in the coop (a.k.a., the mandatory share, also 30 euros worth in RobYns in the class 50/50).
Members can allocate more RobYns to the coop, by buying optional RobYns, in any of the profit-split classes at any time, how many times members want.
The profit-split options are now described as asset item classes, and are the same 8 different classes as before.
The structure of the coop, naturally remains untouched. One member, one vote. The purpose: to fund commons-building projects.
What has changed?
The member page is now here .
The process of purchasing coop assets or RobYns now has two steps. First, the members fiat currency (USD) or cryptocurrrcy (BTC) is converted to a cryptotoken called SUSD (stable-USD), a token whose value is pegged one-to-one to USD. Second, these SUSDs are used to purchase the RobYns. So, in allocating new assets to the coop, you first i) buy SUSD to your wallet and then ii) buy RobYns with SUSD.
The series are gone, but that did not change the value of the member’s holdings.
RobYns are listed with a daily price (instead of a fixed price like the voluntary shares had before) on the basis of the Net Asset Value of the portfolio. You can purchase RobYns with any sum you like and the number of RobYns will depend on the daily price (how much you pay / daily asset item price = number of RobYns). Obviously, the EUR/USD exchange rate also has an effect, if you pay by euros.
The way of reporting the performance of the fund. As you might remember, on the old website the performance of the fund was reported in terms of the relationship between the cumulative amount of assets under management (AUM) and the daily net asset value (NAV). The AUM was simply the sum total of all the assets ever allocated to the coop for management. The costs of running the fund have not been deducted from the total sum, making estimations unrealistic.
Now, with the new fiscal year 2016-2017 we also moved to the more commonplace system of reporting the AUM after costs. That means that we deduce from the cumulative AUM all the costs of running the fund, the assets bought back from members that have left, the funds the AGM has allocated to projects, for development and so on. For the current year, the costs will be of course an estimate, and that estimate will be corrected at the end of the fiscal year.
Example: on 21.7., the cumulative AUM was 688258 € and the NAV 396969.03 €. According to the old way of reporting the performance was 42 % in the red (minus). When we deduct the operating costs (1.1. 2012 – 25.7. 2016) from the cumulative AUM, the corrected AUM after costs is 512420 €, and, correspondingly the performance of the fund was 22 % in the minus.