#bstockscis @BinanceCIS
I THOUGHT THAT “1:1” IS THE MOST SIMPLE PART OF bSTOCKS. UNTIL I SAW IN THE DOCUMENTATION 10 → 10.08
Seriously.
Of all bStocks, only 1:1 seemed to me like a part where there’s basically nothing to figure out.
There is underlying.
There is bStock.
There is collateral.
That’s it.
And then, in the Binance FAQ, I came across their conditional example with TSLAB.
Before the dividend:
10 TSLAB
After reinvesting the dividend in Binance’s example, it already shows:
10.08 TSLAB
And a raw balance in the external wallet can still remain:
10
Just the Multiplier becomes 1.008.
I read it again.
Because intuitively a question arises:
if everything is 1:1, where did the extra 0.08 come from?
And then, finally, the picture clicked.
1:1 backing does not mean that the raw token number on your address must forever stay the same number that Binance displays.
Corporate actions can go through the Multiplier. For dividends, Binance describes the mechanics like this: net dividend value is reinvested, raw token balance does not change, and the displayed balance is adjusted. For a split, the very same mechanism can change displayed quantity even more strongly.
And for me, this turned out to be more interesting than the number itself.
We really love simple labels:
1:1. Backed. On the blockchain.
They help you quickly understand the product.
But reality almost always starts after the colon...
I THOUGHT THAT “1:1” IS THE MOST SIMPLE PART OF bSTOCKS. UNTIL I SAW IN THE DOCUMENTATION 10 → 10.08
Seriously.
Of all bStocks, only 1:1 seemed to me like a part where there’s basically nothing to figure out.
There is underlying.
There is bStock.
There is collateral.
That’s it.
And then, in the Binance FAQ, I came across their conditional example with TSLAB.
Before the dividend:
10 TSLAB
After reinvesting the dividend in Binance’s example, it already shows:
10.08 TSLAB
And a raw balance in the external wallet can still remain:
10
Just the Multiplier becomes 1.008.
I read it again.
Because intuitively a question arises:
if everything is 1:1, where did the extra 0.08 come from?
And then, finally, the picture clicked.
1:1 backing does not mean that the raw token number on your address must forever stay the same number that Binance displays.
Corporate actions can go through the Multiplier. For dividends, Binance describes the mechanics like this: net dividend value is reinvested, raw token balance does not change, and the displayed balance is adjusted. For a split, the very same mechanism can change displayed quantity even more strongly.
And for me, this turned out to be more interesting than the number itself.
We really love simple labels:
1:1. Backed. On the blockchain.
They help you quickly understand the product.
But reality almost always starts after the colon...
