On October 20th Buildteam Announced the end of the [Profit Distribution Auction](https://steemit.com/buildteam/@buildteam/announcing-a-big-change-to-buildteam-tokens) with one final Auction to be held November 3rd.  That auction has now concluded, and distributions made.

If you are unfamiliar with BuildTeam, before you dig in to this post it might help you to go back and check out the [Introduction to Buildteam](https://steemit.com/buildteam/@mikepm74/an-introduction-to-buildteam-brought-to-you-by-newsteem) article I posted a couple weeks ago.  This post will make a lot more sense if you have a basic understanding of the operation.

<center><img src="https://steemitimages.com/DQmcf1grL7683B9qDWAdDB3KTBcW4beJS3a5WkqH6J5suhN/image.png" /></center>


  The system of profit sharing moving forward will be a proof of stake rather than the auction.  What this means is, if you buy or own BuildTeam tokens you can choose to Stake your tokens for a portion of the monthly Distribution.  This will be great for long term passive growth of investment, but I have a feeling many people will fail to recognize that there will be a lot more Staked Buildteam shares than there ever were in the auction, meaning monthly return will be lower. But you don't lose your token, so this isn't a bad thing!  
<center><h3>
    A Look Back at the Auctions
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For the four months that Buildteam has held the distribution auction process it has been a great investment, returning [1.73 STEEM per Buildteam](http://usesteem.com/buildteam/@buildteam/buildteam-auction-results-august), [2.08 STEEM per Buildteam](http://usesteem.com/cryptocurrency/@buildteam/buildteam-auction-results-september), [1.42  STEEM per Buildteam](http://usesteem.com/buildteam/@buildteam/buildteam-auction-results-for-october), and finally 2.57 STEEM per Buildteam for November.  

That final distribution drew in bidding of just over 3100 BuildTeam tokens splitting 8000 STEEM!  

While the price of a Buildteam token has increased over the course of the 4 months, the return has still been profitable.  I began buying tokens in the second month, and I was at one point able to get tokens at 10 BTS per Buildteam.  During the final auction the price of one token has gone up to 36.5 BTS per token.  Depending on how and when you purchased your tokens, the auction was one of the best Return on Investments around.

<center><h3>
    Looking forward to Proof of Stake
    </h3></center>
    
Everyone who owns BuildTeam tokens can chose to hold them with the ability to sell at their leisure, or stake the tokens for a share in the monthly distribution.  If you stake your tokens, and then decide you want to sell them, the tokens will go through a power down cycle similar to Steem Power, so you cannot just take them out of Staking and sell immediately.

At Present, there are 23,000 Buildteam tokens in circulation.  You can check out the state of the token over at [Cryptofresh](https://cryptofresh.com/a/BUILDTEAM), but here's a screen shot for your reference:

<center><img src="https://cdn.discordapp.com/attachments/363581225962831903/377476086646439937/unknown.png" /></center>
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I had a brief chat with @reggaemuffin this morning, and he referred me further down the page to the Holders and Traders screen, which shows everyone who owns any portion of the circulating tokens.  He pointed out that five of the accounts holding BuildTeam cannot Stake their shares.  

These accounts: buildteam, reggaemuffin-1337, the-crypto-drive, kostronor, and cryptomancer1, account for 13,315 of the 23,000 supply.  That leaves 9,685 tokens currently in circulation.  

It is important to note that these five accounts can sell their tokens, and the new holder can then stake the token.  Also of note, there can be up to 5,000 new tokens created per month.  

But for the sake of simplicity, let's play with the 9,685 token number for now.  Each token in that allotment can be staked or not staked by the person holding the token.  For the moment, let's assume a 100% Staking of the tokens.  BuildTeam's distribution pool has gone up in every month of the four months the auction operated.  From 2100 to 3700, to 4000, and finally 8000.  Additional growth should not be a problem for this group, but let's assume a level November, with no additional increase in the pool, thus another 8000 STEEM pool for the December distribution.

<center><h3>
    Doing the Math
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8000 STEEM divided by 9,685 Staked tokens = 0.826 STEEM per token.  

Let's flood the market with all the shares owned by the five accounts who cannot stake, while still keeping the pool at 8000 STEEM.

8000 STEEM divided by 23,000 Staked Tokens = 0.348 STEEM per token.

You can play with the numbers however you want.  Chances are that not 100% of the circulating tokens will be staked at any given time, and chances are the reward pool will not be level at 8000 STEEM.  It could go up, it could also go down.  

What I want people to be prepared for, is the fact that your monthly distribution payout may not (likely will not) be as high as it was with the auction.  And that is not a bad thing!  Staking tokens means long term passive income.  Isn't that what investors are looking for?  Not only will you get to keep your tokens, but smart investors will be taking some of that monthly distribution and converting it right into additional tokens to increase their stake, and compound their gains.
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<center><img src="https://i.kinja-img.com/gawker-media/image/upload/s--UxpCERqi--/1455251733703633704.png" /></center>
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Unfortunately, there are a lot of people out there who don't think things through.  They see that they received 2.57 STEEM per token in the auction this month, and they anticipate that they will continue to see big returns in spite of the move to Proof of Stake.  

What this will likely present, is a flood of tokens coming into the market on sell offers around this time next month when people decide to cash out and move on.  I don't know about anyone else, but if this happens, I will be there to buy buy buy.  We're playing the long game now, and betting on BuildTeam is a bet I am willing to make!

Full disclosure, I participated in the final auction with my entire stake of BuildTeam tokens.  My current holdings consist of 0 tokens in the system.  But I intend to buy back in at the earliest profitable moment.  Since the distribution is paid in STEEM, which is currently trading at under 14 BTS per share, now is not the time to convert STEEM to BTS and BTS to BUILD.  But I will be back in soon!

One Final note.  BuildTeam will be moving from the Bitshares platform and create a Smart Media Token once SMT can be created on the platform.  This is another exciting prospect people should look forward to.  Essencially, buying BuildTeam tokens through Bitshares is like early entry into an SMT.

Disclaimer: I am not a financial advisor.  The opinions stated here are my own, and are not meant as guidance.  Do your own research before making investment decisions.  And NEVER invest more than you can afford to lose.

Thanks for reading!!!