Read on Twitter
A thread for those struggling to understand the #footballindex “Issuance Curve”:
1) For every price that people are offering to sell at, a few of the shares at each price point will be shares that are being issued from FI (minting shares).
1) For every price that people are offering to sell at, a few of the shares at each price point will be shares that are being issued from FI (minting shares).
2) Which is what they already do now, when we buy now so they had to continue as it is one of the main ways which FI make money.
3) I like the fact they called it a curve because it’s kind of similar to a yield curve. Essential at each point along the curve (at each price point that people are selling at) the majority of the shares being sold at that price point will be those being sold by FI traders...
... but FI themselves will also add a couple of shares in there at each price point too. So that they can make money from essentially selling you a Sancho for £15 that has cost them £0 to issue.
4) IMPORTANTLY: #footballindex can only add a “controlled volume” at each price point because otherwise they’d increase supply too much and we therefore wouldn’t see any price increases.
5) To put it simply: “If there are no sell offers, FI will sell - but when there are sell offers, FI will still chip in and sell bets” #footballindex @FiGuide
