RE: RE: What gives Hive-Engine tokens value?
This particular post that you commented on here, is an old one.
My thinking at the time was that communities would generate demand for their token, because it affords stakeholders influence over how their content is displayed.
For example, if a crypto project wanted to put their offer at the top of leofinance.io, then they just need to take a stake in LEO and upvote it there.
But the reality is, that right now at least, there just is no demand for having content displayed at the top of your community.
And as such, there is still an extreme imbalance between those selling the tokens that are being printed as rewards and those willing to buy that excess supply.
The end result being the LEO price grinding lower on its way to zero.
With that precursor in mind, I've this week written an updated blog that talks about maximising the value of content on Hive's layer-2 to support the price of LEO.
It can be done and the easiest way to do it is with ad revenue.
When you talk about ad space, where would that be? On our profile banner or some such? I may have misunderstood, but it seems there is also potential to monetize external clicks?
When I'm talking about ads, this is completely separate and unrelated to any Hive blockchain rewards.
Completely ignore the blockchain for a second.
So right now we have leofinance.io displaying ads on all of its pages, thus generating USD revenue to the domain owner (Khal).
But as content on leofinance.io is all user generated, he has a responsibility to the community to give that revenue back.
To do this, I'd encourage him to use the ad revenue to buy back and burn LEO tokens.
With enough consistent traffic, this will put a price floor under the LEO token and ensure that the LEO supply always being printed for rewards doesn't outweigh the demand.
Because there's always the ad money consistently buying as much as it generates.
Under this model, there would be a real incentive to take a LEO stake and to focus on overall quality - Not just your own blockchain rewards.
Suddenly the biggest monetary incentive would no longer be to spam throwaway content in exchange for HIVE rewards in the 7 day window.
Now the monetary incentive would be there to actually work together for the good of the site and create/curate high quality pieces of content that actually drive traffic.
Right now, the key to all this sits in the domain owner's hands...
Ask Khal:
"When ad revenue buy/burns?"
Posted Using LeoFinance Beta
