Posts

The LEO reward pool balancing has begun

avatar of @felander
25
@felander
·
·
0 views
·
2 min read

I was just reading this post from @onealfa where he talks about the rewards for joining in the Liquidity Pool

And at one point he is saying he might not want to keep in 33% as originally intended but put more into curation.

Probably I have to reconsider my initially planned ratio of my STAKED tokens vs Pool's LP tokens. 🤔

And he is correct in this situation.

We have to realise is that we have a LEO Scale

The full rewards pool is split into 3 parts:

  • 70% POB - Proof of Brain: Curating
  • 15% POW - Proof of Work: Mining
  • This one is new, let's call it:
  • 15% POS - proof of splash (from jumping in the pool, get it?)

The returns from the Mining cannot be changed much as all of the miners have been sold and are staked so they are churning out their returns daily. But the fluctuation between POB and POS can really affect the returns provided for those participating.

So let us use a whale like @onealfa as an example for the moment. Imagine he has about 800k LEO staked (I believe it is more now)

Let us entertain a few scenarios here:

  • He unwraps 300k and stakes it all. That means the Liquidity pool drops from 950k to 650k LEO and we all make 30% more. It also means that there is about 8% more staked LEO and we all get less curation and author rewards.
  • He powers down and puts it all in the pool the inverse will happen.

And this is what @khaleelkazi was talking about in one of the last posts.

The ecosystem will take a look at the rewards and it will follow the ROI till everything is in balance. This whole thing is going to be fluid but balancing at the same time. This is really exciting to see happen and interesting as an economical experiment. As @taskmaster4450 keeps saying in a way in a lot of his posts, times are changing and we all better keep up.

I have my stake since day one I have my miners I am now powering up my LEO to keep my part in balance. So by having all 3 I am taking part in all earning possibilities out there and hedging my ROI

What are you doing to get the best returns?

Posted Using LeoFinance Beta