It has been a long wait, but we are finally ready to launch Round 3 of the TULIP Mania Game.
TULIP Mania Game Round 3 starts at 14:00 UTC on Sunday, 2 February, 2020, and will last 28 days.
This should be more frequent, especially given the financial successes of the previous two rounds, but have been very busy and was also thinking of any further innovations to make the game easier to play.
There is, indeed, one rule change compared to Round 2, so please read all the instructions below.
What is the TULIP Mania Game?
The TULIP token is a game token; it allows players to participate in the TULIP Mania Game. The game was designed as a strategic trading game but has been largely used as a short-term buy-and-hold investment in the token price.
The TULIP game is completely asset-backed by the initial token sales and the profits are paid out to the token-holders at the end of each round by buying back the tokens at a higher price.
The TULIP game works on a cash basis, meaning that profits are calculated based on the cash value of all holdings and income, and those profits are paid out through the price of the TULIP token.
This Round 3 will last 28 days. At the end of that period, a final token price will be published and all token-holders may sell back their tokens to the game master account. Players may obviously buy and sell their tokens at market prices throughout the game period. The cash basis accounting means that it is possible for a player to have made a cash profit but still be holding tokens. This is part of the game and it is up to each player to have their own strategy about when to buy and sell tokens. All tokens remain the property of the token-holder and may be used in the next round.
Rules for the TULIP Game Round 3
The TULIP Game officially starts at 14:00 UTC on Sunday, 2 February, 2020, and will last 28 days.
The TULIP Game thus ends at the same time on Sunday, 1 March, 2020.
A final closing TULIP price will be posted the following day and all remaining funds will be paid out through TULIP token buy-backs during the week after the game ends.
The TULIP Game starts with the creation of 10,000 TULIP tokens priced at 1 STEEM cent (0.01 STEEM) - this takes place at the official start time.
However, the TULIP token distribution has already been set up down to 2 cents and anybody who wishes to participate can already buy such tokens at the market price.
The TULIP Game fund starts earning from the official start time.
Posts will be published daily to update players on the value of the fund and an estimate of the asset backed value (ABV).
A reminder that because this game now runs on a cash-basis instead of the old token-basis, such ABV is indicative only and can fluctuate due to trading activity.
The game master account, @Busbecq, has administrative tasks such as posting and managing the fund, but is not allowed to actively intervene in the trading of TULIP tokens.
The management fee for the game will be 10,000 TULIP tokens paid for at the starting price of 1 cent. They are paid for so as not to distort the mathematics of the game.
This TULIP Game runs for 4 weeks; the first 3 weeks will be dedicated to making profits for the fund, and the final week will see the start of some buybacks placed onto the market. This eases the stress at the very end and allows some players to take early profits. All these numbers will be reflected in the daily updates.
There will be 7 days dedicated to the cashing-out period after the game ends. After that time, the game is no longer obligated to buy back more tokens as all profits will be paid out by then.
Those still holding TULIP tokens can then keep them for the next game.
Any questions, please ask below in the comments section.
Previous TULIP Games
We can in no way guarantee profits and it is, in theory, possible to lose money. However, the previous two rounds have been highly profitable.
Round 1 made an average of 24.3% profit in 28 days, based on the average token price from Day 1 to Day 28.
Round 2 made almost 11% cash profit in 15 days, with a token price profit of potentially between 50-80%.
Although the two games were tracked using slightly different metrics, we can see an average of about 21-24% over a month.
There are multiple sources of profits, including post rewards and curation rewards, token trading and income from tokens paying interest. This requires the TULIP fund to be actively managed so as to maximise profits while limiting potential losses.
The @Busbecq account now has some operational assets from previous games; these will be declared at the start and do not form part of the fund for this game round.
Those of you who have played before know that we have been experimenting with a Dutch Auction to start off each game. This has worked well, in the sense that it does work, but for it to have the dynamism of a real auction requires more participants. If we see more players joining, we may well go back to the system as in Round 2. However, for this Round 3, we have a very short auction with only the 1-cent tokens up for grabs. All other TULIP tokens are available from the time of this post. Being priced at 2 cents, this is still a very good entry point and means people do not all have to be online at the same time. As always, we shall monitor and adjust for the next round.
Please read all the previous posts as they will give you a good idea of how the game progresses. The most important thing is that profits are made only during each game round. The TULIP token is not designed to be held for years as each new game resets the price to 1 cent. The large number of tokens still "out there" is the reason we changed to a cash basis, just so that we can ignore all those tokens until they are sold back.
Also note, TULIP tokens that are bought and sold between players do not go through the @Busbecq account and hence do not count as fund capital or income. It is the responsibility of players to check the daily statistics to determine the level of profits available for later distribution.
Any further questions, just ask.
Good luck and look forward to an interesting game!
Disclaimer. We are not responsible for your actions. We are not responsible for the functioning of third party software. If the game needs to terminate early for any technical reason then liquid funds will be distributed at the earliest possible opportunity on a pro rata basis or the game paused and restarted. Do not play with funds you cannot afford to lose.