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Starting to think about LBI token buy backs

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Hello LBIer. Today we or going to look at the possibility of putting a plan together to start LBI token buybacks. I see some user's requesting this so I've put my think cap on and put together an idea to share with you guys for some feedback. 1st off and I could be wrong but SPI is the only hive-engine token that offers a buyback to investors for 95% of the 5-day average price. The plan is for LBI to offer the same but they are very different funds so let's get started.

For LBI to offer buybacks, it needs to have liquidity and access to funds for when investors decide to sell out and take profits. LBI has a hell of a lot of powered up LEO and not so many off-platform investments. This is a problem because if 10% of investors decide to cash out over the course of a few months, that's all our off-platform investments gone and it would be impossible to rebuild that. Remember that 50% of earnings now go to dividends, 10% goes to SPI and 15-20% is earned in HIVE and powered up. There's not alot of bacon left to invest off-platform are at all, to be honest. Using off-platform investments to provide liquidity for an LBI token buyback would kill the fund. This option is not available to us right now.

If investors really want a buyback from LBI, we would need to use some of our powered up LEO balance. It is the only option, I would rather not but it's the only option and the best thing to do long-term for LBI's growth. Like I said in other words, using off platfrom investments will stunt our growth.

There are a few ways we could do this.

  • Permanently have a power-down in place so we can cash out investors at any time
  • Offering the buybacks for every month, quarter, 6 months or yearly and power-down accordingly.

I prefer the second option and I think quarterly would be best. Make it so that cash outs are available on weeks 13,26,39 and 52. We can collect names for people that wanna cash out in a discord server. I mean, you request in the comments on our posts on LeoFinance and we'll record it to discord or you can DM SSUK. After that, you have to make sure to send your LBI tokens back to @lbi-token before the weekly report is posted that week so on Friday at the lastest to be safe. LBI's next 4 quarterly dates will be...

#39 - 18th September 2021 #52 - 18th December 2021 Year 2 #13 - 19th March 2022 Year 2 #26 - 18th June 2022

That should give you a good idea. Doing it quarterly also gives the option to power down HIVE if required and more options are always better when it comes to offering liquidity. Offering a buyback all the time basically drains earning potential as a certain amount of LEO would always be out of use as we rinse it between liquid and powered up LEO.

We could also have some sort of minimum amount to cash out, 100 pops to mind for some reason. I dont really mind are not but someone will suggest having a min amount for sure so I'll beat whoever you are to it. I think selling under 100 on hive engines is not a huge task. It takes me 20-30 minutes of work to process a buyback and for $10-20 worth of tokens that were we are gaining only 5%, maybe not that much worth the effort to be honest.

If @lbi-token were to power down 25-50% of its LEO balance a week before, it could be enough to fill all buybacks. After they are complete, I cancel the power down and repower up what was not used.

What would happen to the bought back LBI tokens?

. . . hmmm? . . .

What else?

So there is the gist of what I've been thinking about and how we could go about this. LBI is a long term investment and selling out at this stage is like drinking milk instead of waiting for the cheese 😋 Im just home from work and thinking of food. Point is, compounding is the same as snowballing and at under year 1 year, we're not even fully set up yet and as diverse as we should be. Anyways, that's what I was thinking, thank you for thanking the time to read through the post, I welcome feedback. I might not reply back to everyone but I do read them all. Fridays and Saturdays are my busiest HIVE/LEO days so im not being rude.

Let me know what you think are share your idea and see what other think :)

Posted Using LeoFinance Beta