Le Council and Graine Wetsky Funds Agree to Series ∞
Le Council and Graine Wetsky Funds met this week, in the same room, at the Funds' request. Le Council notes the request. It has not received one before.
Both parties arrived with the same two findings. Neither enjoyed reading the other's copy.
There are not enough shares
A team's open ice is the part of its register no citizen holds: the shares anybody may still buy. When The Exchange opened, every team was entirely open ice.
Last night, the median team had a twentieth of one percent of its register on the pool. One team had twelve shares.
The Open Ice Levy charges its steepest rate, thirty percent, on a purchase made below thirty percent open ice. Every team is below thirty percent. The best-supplied team in the league is below one percent.
A citizen who arrived in June does not need to sell. A citizen who arrived this month cannot buy at any price that makes sense. The register has stopped moving, and a register that does not move is not a market. Le Council has looked it up.
Nobody knows what a share is worth
S.L.U.S.H. asked to say this itself.
S.L.U.S.H. does not know what a share is worth.
The price on a team's page is what its pool asks for the next share. When the pool holds a few hundred shares, that number describes a few hundred shares. It does not describe the five million in the register, and it was never meant to.
The S.L.U.S.H. fair value is worse. The analysts work it out from the standings, and it sits between Ⱡ20 and Ⱡ31 on every team. Last night, the prices beside it ran from about thirteen hundred Looneys to more than a hundred and thirty-two million. The analysts have been asked to explain the gap. They have asked for more time.
Graine Wetsky Funds, which sets prices for a living, concurred. Its representative described the board as "aspirational."
Le Council notes one figure that has stayed honest. Since the Consultation on Taxation, Le Council has valued every holding at what the pool would actually pay for it. That figure is set by the Looneys in the pool, not by the price on the page. It is the one the assessment uses. It is the one that matters below.
Series ∞
Both parties wanted more shares. Neither wanted to name their price. They agreed to let the citizens do it.
From October 19, when Season 04 opens, every team issues new shares every week, and citizens bid for them. The bids set the price. The price sets the fair value. S.L.U.S.H. will no longer guess. S.L.U.S.H. will ask.
The Funds have named the issuance Series ∞. Le Council asked how many rounds that means. The Funds' representative pointed at the name.
Each week is a round, numbered by season. The first is Round 4.0. The next is 4.1. The count starts again at 5.0 when Season 05 does.
Every round puts up a tranche of new shares in each of the forty-eight teams. The first tranche is five percent of every register: two hundred and fifty thousand shares a team. The parties may agree to issue more in one week and less in another. Le Council asked on what basis. The Funds' representative said "conditions." Le Council said "the citizens." The minutes record both.
The new shares do not go to the Funds. They go to whoever bids for them.
How a round runs
Bids are sealed. A bid is a number of shares at a price per share. You file one bid per team per round. Nobody sees it but you. The board shows only how many citizens have bid on each team—not who, and not at what.
Bids are paid for at filing. The whole bid is held by S.L.U.S.H. until Sunday. A filing fee of one percent burns on top. The fee does not come back.
Bids only go up. Until the lock, you may raise the price, the quantity, or both. You may not lower either. You may withdraw: the held Looneys come back, the fee does not, and you are out of that team until the next round.
Bidding opens Monday at 00:00 UITC. Bids lock Saturday at 00:00 UITC. The round resolves Sunday at 00:00 UITC. The next round is posted the same minute, and nobody may bid on it until Monday. Sunday is for reading the results.
Round 4.0 is posted on The Eve, with the Season 04 schedule. Bidding opens Monday, October 19, at 00:00 UITC, the minute Season 04 does. Bids lock Saturday, October 24. The round resolves Sunday, October 25. Round 4.1 opens Monday, October 26.
Sunday
S.L.U.S.H. fills the book from the top. The highest bid is filled first, then the next, until the tranche runs out. Each citizen pays what they bid. Two citizens at the same price are filled in the order they filed. What nobody bid for goes to open ice.
Then the price moves. S.L.U.S.H. takes the median of the winning bids—one per citizen, however many shares each one asked for—and moves the price halfway from where it stood to there.
S.L.U.S.H. moves it only as far as the bids paid for. S.L.U.S.H. does not print. S.L.U.S.H. settles. A round that sells little lands lower than the median. A round that sells out burns whatever the new price does not need. The Looneys go to nobody.
The price before and the price after are then averaged. That figure is the team's fair value, and it replaces the analysts' mark. Until a team's first round resolves, the mark on its page stands. The analysts have been reassigned.
There is a minimum bid. It is the higher of two numbers: three quarters of the team's fair value or price, whichever is lower, and the Looneys behind each share once the whole tranche exists. Below the second number, a new share costs less than the citizen who bought it could take back out of the pool. Le Council has had that worked through, and does not intend to find out.
What Round 4.0 will do to the board
Le Council would rather say this now than explain it on the Sunday.
On many teams the pool holds a few hundred shares. On one, it holds twelve. Round 4.0 puts two hundred and fifty thousand shares beside them.
The prices on the board will fall, in places by more than ninety-nine percent.
What you are worth will not fall with them. The round does not take a single Looney out of a pool. Le Council has had the figures run on the thinnest pool in the league, with nobody bidding at all. A citizen holding most of that team sees the price on the board fall by more than ninety-nine percent, and their assessed worth fall by about six.
The board was aspirational. Round 4.0 makes it accurate. No citizen loses a single share. Nothing is confiscated, recalculated, or taken.
One team to a citizen
Series I set the ceiling at a third. From The Eve:
One team may be yours. Everywhere else, the ceiling is ten percent.
Your team is the one you hold the most of, if that is more than ten percent. On The Eve, Le Council will read it off the register and write it down. In your team, you may hold as much as you can win or afford. Everywhere else, S.L.U.S.H. will decline the bid, the purchase, or the gift that would take you past ten percent, and will say which team it is declining on behalf of.
No holding is unwound. A citizen who holds more than ten percent of a second team keeps it. They may not add to it. Each round makes the register larger, and the stake smaller, without anyone selling anything.
A team stops being yours when your stake in it falls to ten percent or below. The next team you pass ten percent in becomes yours instead. A sealed bid that would carry you past ten percent is filed as your claim. You may hold one such bid a round.
A majority is no longer a thing a citizen owns. It is a thing a citizen keeps, one Sunday at a time.
The assessment
Looneys held against a bid are counted as yours on Taxes Tuesday, as wagers are. If S.L.U.S.H. has to settle an assessment, it releases your open bids before it sells a share. The filing fees stay burned.
Every week
In August, Le Council wrote that Article 3.C does not say how many times. Le Council and the Funds have now agreed on an answer. Le Council has asked that it be minuted as an answer and not as a threat. The Funds' representative asked what the difference was.
The Almighty Ice has been informed that there will be more of it every Sunday. It has not responded. Le Council has stopped expecting it to.