Leofinance Building A Sustainable Economy
Over the next couple years, things are going to change a great deal around Hive. In my mind, this carries great implications for Leofinance.
There is little doubt this is one of the leading communities within the ecosystem. The development team is focused upon continually bringing out products that are going to fulfill the needs of users when they finally arrive here.
However, one thing that is going to be crucial is to build a sustainable economy. This is something that has been discussed, albeit piecemeal. For this reason, it is best to kick-off the topic in totality with an article.
How do we build a sustainable economy? This will be the most crucial question over the next 24 months or so.
Cryptocurrency Evolution
The reality is we are still to the point where there are feeble attempts at constructing something sustainable. As we covered (extensively), too many projects simply monkey around with the tokenomics believing that is the solution. Sadly, this is not going to work in the long term.
What it takes is building. In this manner, basic business building attributes much be implemented. This is something that Leofinance appears to be doing.
The idea of making LEO the value capture token was spot on. While it was not phrased like that, it is essentially what Khal means when he talks about things being under the Leo umbrella. It all is designed to flow into the main token.
He also mentioned subscriptions. While the specific feature can be disputed, the idea of adding more layers to the platform cannot. Ultimately, this is going to be crucial for sustainability. We need revenue generating activities, ones that move us into the world of commerce.
On the last AMA a point was brought up about modeling the NFTs Addidas puts out. The concept is to have the "return" on the NFT come in the form of Leo clothing or merchadise. By having the NFT, one is able to partake in this.
Here is another idea: how about a Leo game. This could be done in a manner whereby people purchase the NFT and that gives them entry into the game.
Of course, as more stuff is developed, it can be tied to the NFTs. Think of this as an access token.
The point is we will have to work on generating sustainable commercial components that will become part of the Leo economy.
Layer 2 Is For Commerce
In my mind, the second layer is where we will see cryptocurrency commerce taking place. Trying to blend it all into the base layer is not sensible.
Leofinance can really get ahead of the curve by applying some game theory and discussions about the direction to take things. This can involve the main team or can come from groups within the community. That is the great thing about Web 3.0, no permission is required.
For the last few years, I harped on the idea of thinking of oneself as a business. This is a mindset I think everyone needs to carry on Hive. The reason for it is simply because we are dealing with monetized platforms. This turns them into economies.
If we are to break free from the slavery system, we have to construct commercial applications that take society in a different direction. This is not going to come from the top down.
What is the solution? I honestly do not believe there is one single answer. While everyone is looking for the Killer DApp, Leofinance can simply be a play of builders. This can take on many forms, collectively forming the foundation for what can become a powerful economy.
Taking the idea of a town, just think of the economic potential of 100K people. If that is what Leofinance can attract, it still will be very small (a nothing) in the online world. However, as an economy, that can be fairly robust, especially as a starting point.
Therefore, in closing, it is up to each of us to help build a sustainable economy. This is not going to rest on the backs of one or two people. It also is not going to happen is people are simply extracting from the system. Why reproduce that? If we want system extraction, we can keep doing business with the banks.
It is time to, once again, shift our thinking. Leofinance is ready to move to the next phase and it is time for people to step up.
What are you doing to make the economy of Leofinance sustainable?
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