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June Newsletter #1


1. Website
2. Moving the assets to the new system
3. Q&A sessions
 

Hello Robins!


A quick update – there will be more than one this month as the new system launch is approaching!

1. Website

As explained on the website, the old website crashed due to a server malfunction in late April. No user info was affected by the crash. All the data was backed up. As we had decided to move to the blockchain database in any case, which also meant building a new website, the board together with the development team decided not to put our limited resources into bringing the old website back up, but instead to push ahead into building a new website to go with the new database. The new interim website has been up since early May, with basic info on the coop, and also an interim way to register as a new member. We apologize that there is no way to access the old member pages at the moment. When the new database goes online, the member pages will be again fully accessible.

So, when is this? The new database structure as such is ready. The next step in the development is to move the data from the old system to the new one - and then test that everything works. This means that the new system will be up and in use by the end of July. Which brings us to the next topic.


2. Moving the assets to the new system

In short, the new system means more streamlined system of keeping track and accounting.

As you know, the old system allocated voluntary shares in chunks of 30 Euros. Furthermore, the shares were assigned into series. A new series was created in the beginning of each month out of the new shares booked during the previous month. These two aspects were designed to make the operations possible in the face of some arbitrary limitations. (1) The 30 Euro chunks were necessitated by the Finnish coop law that forced us to name the nominal price of a share. (2) The series, in turn, were necessary in order to take into account the fact that money had to be moved first from the member to a Finnish bank account, then manually from there to our broker account in New York, and from there to the portfolio. It would have been unfeasible to take each share payment manually through the whole route individually. Now, both of these hurdles are obsolete! The voluntary shares do not have to be in chunks of 30 euros any more, because of the changes in the Finnish law. Also, the new payment system and database is automated so that we can quote a daily price for the shares.

The 30-Euro-shares-in-monthly-series model was basically a way to organize the different entrance points of member shares to the Robin Hood portfolio, even if the nominal price remained always 30 Euros. This was made possible by an accounting mechanism (not visible to the members) where the shares in each series were assigned a value in so called “u-units”, corresponding to the actual per-series share price.

The calculation for the u-unit price in each series has been the following: (net asset value - monthly series deposit)/(the sum of all previous u-units). Then the amount of u-units in each series is calculated by dividing the monthly deposit by the u-unit price. And voilà! We know what kind of a piece of the portfolio one gets with 30 Euros at the specific point in time. In other words: the amount of u-units (and not the number of shares) defines really the value of member's assets in the portfolio.

Now, when moving to the new system, as there is no reason for the artificial complication of the monthly series, the series will be retired. This will not affect the value of the shares of old members. The artificial extra accounting transformations are just removed, because they are no longer necessary.

What will be moved over from the old database is the amount of u-units each member holds in each series (determined by how many shares she/he has in each series) and not the number of voluntary shares - as the number of shares neither has an effect on decision making in the coop (one member, one vote is the rule) nor affects the value of the member’s assets, which is really defined by the amount of u-units.

This way the performance of each member’s assets will continue as before (the month when the shares were booked will still have an effect on the development of the value), but we get rid of the cumbersome and labour-intensive series system. In the new system the shares will be booked in a manner similar to ”ordinary” funds: with a daily price depending on the performance of the portfolio and the day of purchase.

Consequently, what you will see in the new member pages is different, because the series will be gone. However, the value of your assets will not change in any way in the transition. Neither will your rights as a member. We simply move to a more streamlined system of keeping track and accounting.

In sum, in the new system:

  • Members will see the value of their investment as before, and it will behave as before, but the series and number of voluntary shares are gone.
  • The one-time membership is still 30 euros and the obligatory membership share 30 euros. These two give the member full membership rights.
  • Voluntary shares are given a daily price and you can purchase them with any sum you like (and depending on the sum, you will get a corresponding amount of shares).
  • The shares are now, in essence, crypto-tokens, as explained in the April Newsletter.
  • As the first new feature, members can also access a “members' market, where shares can be sold and bought among the members.





3. Q&A sessions

This is a big step for the coop and there is a lot to digest, so we thought that we could organise a couple of live Q&A-sessions, where members of the board & development team can discuss with members and answer any questions. How does that sound? We will soon announce the times for these sessions.

More here.

***

We are now 926 at the time of writing this! And with the new exciting tools we will surely hit the 1000 mark soon.

Keep your networks informed, come discuss at the forum and volunteer if you can!



GET INVOLVED   

How to Became a Member?
Join now on our website or click the button on the right side of this letter. Register and book your first shares. After confirming your email address, you will get instructions for payment.

If you have any questions, ideas or proposals feel free to contact us. 

contact@robinhoodcoop.org
projects@robinhoodcoop.org
help@robinhoodcoop.org

www.robinhoodcoop.org
http://robinhoodcoop.org/faq#text
http://discourse.robinhoodcoop.org
SPREAD THE WORD! Please, help us continue by spreading the word. Here is a sample tweet:

NEWS: Robin Hood Coop moves on to the #ethereum #blockchain #coop2dot0 http://discourse.robinhoodcoop.org/t/moving-on-to-blockchain/259
 

Number of Members:

926

Assets Under Management:

688258€

Net Asset Value: 

405563 €
10th June 2016

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