#bstockscis
The first time I saw the word “Multiplier” in the bStocks description, I thought: yet another complex term that an ordinary user really doesn’t need.
But once I looked into it, it turned out that it’s precisely thanks to Multiplier that you can understand one of the important features of bStocks.
If simply put, Multiplier is a coefficient that helps determine what economic share of the underlying stock one bStock represents.
Because over time, various corporate events can affect the real stock. For example, a company might do a stock split or pay dividends.
That’s where Multiplier comes in.
bStock → Multiplier → the economic share of the underlying stock.
So it’s not enough to look only at the number of tokens—it's also important to understand the ratio behind them.
For example, when a stock split happens, Multiplier allows the system to adjust the bStock parameters accordingly so that the corporate event is reflected in the tokenized asset as well.
Previously, I perceived bStock roughly as “a stock moved onto the blockchain.”
Now I understand that there’s an additional mechanism inside that helps link events from the traditional stock market to the token.
And the most interesting part is that Multiplier also matters for dividends.
#bStocksCIS @BinanceCIS
The first time I saw the word “Multiplier” in the bStocks description, I thought: yet another complex term that an ordinary user really doesn’t need.
But once I looked into it, it turned out that it’s precisely thanks to Multiplier that you can understand one of the important features of bStocks.
If simply put, Multiplier is a coefficient that helps determine what economic share of the underlying stock one bStock represents.
Because over time, various corporate events can affect the real stock. For example, a company might do a stock split or pay dividends.
That’s where Multiplier comes in.
bStock → Multiplier → the economic share of the underlying stock.
So it’s not enough to look only at the number of tokens—it's also important to understand the ratio behind them.
For example, when a stock split happens, Multiplier allows the system to adjust the bStock parameters accordingly so that the corporate event is reflected in the tokenized asset as well.
Previously, I perceived bStock roughly as “a stock moved onto the blockchain.”
Now I understand that there’s an additional mechanism inside that helps link events from the traditional stock market to the token.
And the most interesting part is that Multiplier also matters for dividends.
#bStocksCIS @BinanceCIS