What You Can Do To Help The LBI Project (Part 2)

22 days ago
5 Min Read
903 Words

Last week, we posted some ideas about how each of us can help the LBI project going forward. The post dealt mainly with the idea that we can upvote the content, reblog it, and comment in ways that help others to see what LBI is all about.

The response was terrific and we are starting to see the LEO roll in from our efforts. That is a wonderful thing since this helps the LBI token holders as well as Leofinance in general.

Again, the goal is to have LEO being a one-way street with LBI: it goes in but it does not come out. This will help to reduce the effective circulating supply while providing a return to all token holders.

Today, we need to approach another aspect of the operation: Hive.

Delegate HP To LBI-Token

It is time for all of us to delegate Hive Power to the LBI-token account.

At present, there is 365 HIVE that the account owns. This has come mostly from the posting that was done. Now, we want to increase this faucet for the LBI community.

All HP is delegated to Leo.voter. This nets us some LEO on a daily basis, helping to grow the holdings there. At present, we are earning about .07 LEO per day. This is not going to get us very far.

Increasing the amount that is delegated to @lbi-token will grow the amount of HIVE that is received from the reward pool on a daily basis. This is powered up and will end up finding its way over to leo-voter. Here again, we see the circular nature of things which ends up helping Leofinance in addition to LBI.

By layering, we find that we can increase the overall growth of the total entity.

At the same time, there is a benefit to the content creators. LBI is manually curating on a daily basis. This means that upvotes are paid out to those who are receiving the votes. For the moment, there is almost no value in HIVE given to the post or comment creators. Delegating HP to the LBI account would change that.

Hence, we will look to better distribute not only LEO, but HIVE. This will hopefully enhance the returns for the active members of LEO, providing them with more resources to further deeper with both LEO and LBI.

One important variable in this is to get the delegation high enough that it tops the dust level on Hive. Since so many of the votes are given to comments, we need to exceed that threshold. Having a vote that is work .001 is not going to payout due to the reward curve.

It is vital to note that everything that comes into LBI is used to back the value of each LBI token. Thus, the greater the growth rate of all the assets, the more value your tokens will have.

HIVE is near an all time low in price. Naturally, adding to the amount that is held will see exponential growth if the price of HIVE takes off like many of us expect in 2021. This will also help to increase the value of each LBI token.

Leo Airdop

This brings us to the question about the airdrop that Leofinance teased people with yesterday.

Since we do not have the details of what is taking place, we cannot comment specifically. What we can clarify is how this works and what people actually are holding.

When people send their LEO over to the LBI account, they are swapping the LEO for LBI. This is obvious yet it appears to eclipse some people. Thus, one is no longer holding LEO but, rather, LBI.

The reason this is brought up is because a few seem to think that LBI is akin to an exchange where their LEO is being held. This is not the case. LEO simply was the token that was accepted as payment for LBI. The project could have just as easily used HIVE as the payment method yet the decision was made to structure the project around LEO.

So what about the airdrop?

Basically, the airdrop is like any other token flow into LBI. It becomes part of the overall asset base that each token holder has a piece of. If this token is a Proof-of-Brain token, then LBI will stake the token and use it for curation to grow the holdings. Essentially, this is potentially offering LBI another revenue stream to grow the overall project.

Of course, all of this is open to the community. We might find that what is being dropped is not a Proof-of-Brain token which could require other decisions by the community members.

For now, we will just have to wait until we get clarification from the Leofinance team.

However, the benefit of this move to LBI is the fact that it should increase the value of the LBI token immediately. Whatever the number that is dropped and the value it carries, that is all figured into the overall holdings of LBI. Then we will try to leverage that for better returns.

In other words, the annual growth rate of LBI should see a jump due to this drop. It is another way that we will see outsized returns from this project.

Let us know your thoughts and ideas in the comment section.

This post was done by @taskmaster4450le

Posted Using LeoFinance Beta