LeoGlossary: Leo Power
LEO is the primary token associated with the Leo platform. This is a value capture token designed to reflect the value of the entire ecosystem. It also carries some utility as an access token, providing holders with certain benefits.
*Leo Power is the staking of $LEO. This is no different than the base layer of Hive. When the staking occurs, it is locked up for a 4 week period reducing period. This means that each week, when powering down, 25% of the LEO is released. After 4 weeks, it is in liquid form.
This compared to a 13-week power down on Hive.
Users receive a number of advantages when staking their Leo.
The first benefit to staking LEO and turning it into Leo Power is the ability to generate curation rewards. On Hive, when content is voted upon, each vote carries a certain voting weight based upon the stake tied to it. This is not only a base layer feature but also applies to the layer 2 tokens.
One of the concepts that is going to be integrated into the Leo platform, especially LeoThreads is where Leo Power serves to provide access to certain features. This is similar to Twitter Blue where Elon Musk charges people a monthly fee which provides them with more features than those not making payments.
With Leo, the difference is we are not dealing with an expense but an investment. By accumulating LEO, either through purchase or activity, it will provide access, enhancing experience on the platform.
Some of the idea tossed around are in relation to polls, placing of links, governance models, and other functionality that will entice users to hold onto the token.
The tokenomics of Leo are being enhanced by a revenue model that stems from the application of basic business building principles. Here we see where the ability to produce a consistent growth rate can impact the activity on the websites.
Under that, which is termed Web 2.0, we see sites like Facebook and YouTube generating billions of dollars every quarter. This obviously feeds the corporations, ultimately benefitting the shareholders of the stock.
The users are the ones who provide the data and the clicks relating to the ads. They are not the beneficiary of the financial rewards.
With Leo, the first project to incorporate this new model is LeoAds. It is the ad revenue design which takes the money from ads, feeds them into a smart contract, and ends up purchasing $LEO on from the market. This is then going to be distributed to the holders of Leo Power.
Essentially, this is serving as access to the money generated by the platform.
This will be applied to all other revenue projects developed.
Leo Power Up Day (LPUD)
LPUD is a monthly initiative that helps the community to focus upon the importance of powering up LEO.
On the 15th, users from around the world stake their LEO, allowing them to participate in an effort where prizes are awarded. These come in the form of delegation of Leo Power and Hive Power. The winners are able to use the extra voting weight for the ensuing month, helping to enhance their returns.
The minimum required to be eligible for the prizes is 150 LEO. Those who enter are also awarded a badge, symbol of their participation and dedication to the platform.