Looking into some LBI token issuing tokenomics
Authored by @silverstackeruk
Hello, LBI'er's and welcome to Friday post. Today we are going to look into how LBI token issuing is going, the LBI token price increase in Feb and a few options we have for trying to hit the 250,000 issued mark. First off, having already issued more than 200k LBI's is an amazing feat in itself, way more than we ever thought.
I mean maybe 250k was our top-end guess on launch but that would have been after 1 year, not 6 weeks. Most people that are going to buy in big have done so already and many others will have hit target amounts they set for themselves. We currently have 50-400 LEO coming into the account every day for new LBI tokens, this is not a large amount and most days int he past week, trading volume on the exchanges has been higher. This is normal and put of the process, people's bags are filled. We have 2 tricks up our sleeves to help give a final push at issuing a few more LBI tokens in bulk.
1 - Hit the exchanges for a week
Last week of January
This is a tricky one as we need our sell price on the exchanges to be sorta pegged to LEO but we can't do that, it can be done but im not on that level. This is why we issue LBI directly to ensure each LBI token is backed with at least 1 LEO. Now we have a small cushion of around 4000 earned LEO POWER meaning if we issue a few LBI's for HIVE and get a bad deal cause LEO jumps 10% against HIVE, it's ok and we can absorb that.
1 week is not a long time but I dont think LBI directly issuing LBI's on the exchanges will have that much of an impact as it's already very active. At the time of writing, the past 24 hours of transactions were $112. If we sell a few thousand, I would be very happy.
2 - Accept wLEO for LBI tokens
Starting February
We have been very good so far this month and stuck to our plan of powering up 100% of earnings. A lot of people are asking when gaming? when wLEO LP? when miners? when this? when that?. Everybody has to chill the fook out and relax. Rome was not built in a day and things take time. Slow, boring, consistent but always increasing in value.
With that said, we are halfway through the month and should maybe pick something to wet our whistle come February. The wLEO LP is, of course, the 1st natural selection for us to get involved with and exchanging LBI's tokens directly for wLEO is a no brainer.
Going off the topic of issuing tokens, I'll quickly add in here that when we start accepting wLEO, we will be holding back some of our weekly LEO earnings to build a pot for investing into the wLEO. Little and often does not work with ETH fees so saving up for a few weeks to go in harder and less frequently is the smarter play.
These 2 things might help us issue a few LBI's in bulk
I understand that people are holding on to LEO hard at the minute because of the 2 airdrops so the dip in issuing tokens has maybe something to do with that but I think it's mostly because investors have what they want.
LBI token price increase in February
Ok, most of you that read daily are few posts a week will be aware that we locked the LBI token price to 1 LEO for January to offer smaller token holders a longer time to stack up more LBI's before the price increases. Not everyone hundreds/thousands of LEO laying around and many token holders have bought LBI's as they earned LEO.
Sadly the issuing price will need to increase as the token is worth more. Right now we are issuing LBI at a discount. Here are some ballpark figures.
- LBI has 200k tokens issued and a LeoPower balance of 204k (200k from token sales and 4k earned)
Each LBI token is worth 1.02 LEO
Mrbigballs slaps his lad on the table and buys 200k LBI's for 200k LEO
- LBI has 400k tokens issued and a LeoPower balance of 404k (400k from token sales and 4k earned)
Each LBI token is worth 1.01 LEO
Mrbigballs just made a 2k LEO profit in a few seconds by cutting every issued tokens profit by 50%. Yep, that's right. LBI tokens are discount by roughly 2% when issuing them for 1 LEO each. Get them at a discount while you can because when the price increase's, there will be a small premium to pay as the LBI price is always increasing and will always catch up to the increased issuing price. LBI grows about around 0.5% every week based on its curation and content earnings against it's LeoPower balance. In 2 weeks when the token price increases, the LBI token should be worth close to 1.035-1.04 LEO. If this is the case, the LBI token price will increase to 1.10 LEO each. We could go with 1.05 LEO, after 2-3 weeks, we would be needing to increase the price again. I would estament that LBI tokens will have an actual worth of 1.10 LEO each within 3 months from now so going straight to up 1.10 makes more sense. Also, changing the price too often confuses people.
Ohh, sorry I forgot the say. The token price increase will happen on Thursday the 4th of February. So any LEO sent to the @lbi-token account after the 3rd will receive LBI based on the new price.
LBI token hard cap
As said before we will continue to issue LBI tokens as long as we can issue decent amounts. Using the exchanges daily volume as an indicator. There will come a time within the next few months when hard capping will be needing to be decided. As with everything, we have many options. Some people will push to the hard cap, some will push to continue issuing tokens but we might have a 3rd option, sorta like having our cake and eating it too.
The 3rd option would be a limited hard cap, im sure there is a proper term for it, but im gonna call it a limited hard cap.
Let's say we have 250k LBI issued and we decided to cap it
We stop issuing tokens, send 100k LBI's to a holding wallet and burn the rest.
Every year for the next 5 years, we release 20k LBI tokens for sale letting new people that are yet to sign up to HIVE and LeoFinanace get involved. Could be 50k for 2 years, 10k for 10 years, whatever. That's the 3rd option.
Round up
- LBI tokens to be sold directly on LEO DEX and Hive-engine for last week of Jan
- Starting Feb, LBI will accept wLEO as a form of payment for LBI tokens
- Starting Feb, LBI will be holding back 30-50% of LEO earning for 3-4 weeks to make a wLEO investment. Ballpark target = $500 would be ideal for 1st time
- LBI token price increase on the 4th of Feb
- Hardscaping the LBI token will need to looked into within the next 3 months.
That's all I have for you guys today. As always well done for reading through all that, I hope you understand a little bit more about the LBI project and where we are headed. Screw it, here's 2 unclaimable, non-transferable, no cash value thumbs up tokens. Enjoy those and as always, questions and comments are welcome below.
Have a great weekend everyone, earning report coming tomorrow.
Posted Using LeoFinance Beta
NIce, so I hope I have some free LEO to buy LBI.
A question: Am I right if I think that there are rewards for LBI token holders in LBI price increasing? Or holders get any to their wallets?
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It's both, the price should go up and you will receive dividends accordingly to your share
At some point there will be dividends paid. The community decided to forgo it to keep building the holdings to have a stronger foundation.
As for the price increase, no the difference will not be spread to each holders. The increase in price simply means there is more LEO in the LBI account to use to grow the fund.
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Thanks @taskmaster4450le for your answer.
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Thanks for the update and the guidance on how LBI will be issued in the future. I think I might increase my LP for a few more days then increase my LBI before the price increases.
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Good we have a couple of weeks more to add on our LBI.
Thanks for the update and for the 2 mega thumbs up :)
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That's what I said as well. So we have to decide between investing in LBI or keeping Leo for the airdrop. Not an easy decision and I guess we have to do both.
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Yes tough decision. At the moment I think I will buy LBI, it’s our last chance to get it so cheap. I’ll stake more LEO after February 4th :)
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You will have a lot more time to add then just a few weeks.
There is just a price increase, not a cancellation of the selling of LBI.
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Yes that’s right. Was just thinking about the opportunity to get LBI at a premium ;)
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Awesome. Will try yo keep on staking some more LBI until the price goes to 1.1 Leo.
Sorry for the noob questiotion but I am pretty new to this. Are LBI holders going to get dividends in the form of Leo weekly?
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Scroll back as there has been detailed posts about this.
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Will do that. Thanks.
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It was voted down at this time in favor of stacking as much LEO as possible to get a solid LEO foundation going.
This will be revisited in 3 months I believe.
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Oh, I understand. Thanks for the clarification. Staking as much LEO seems like a good decision.
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Looks like we have 2 weeks roughly to buy LBI at this price. It's a tough decision because of the LEO airdrop coming.
However, numbers are looking good. Let's the we van get a good governance team as well as that's important too.
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Go for both, buy LBI and stake LEO for airdrop.
Im interested to see how to set up a LEO nodes with the coming LEO gov tokens.
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That's what I'm doing as there's no other option, I have to grow both.
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@lbi-token
I will be following the development of your token.
I wish success for your plans.
Thank you for checking out the token and showing interest.
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Really want to get my hand on more Leo! :D
FIAT > ETH > LEO :)
and then LBI, haha
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Hmmm. I've been holding my Leo tokens waiting to hear about the airdrop but now it's sounding like it might be quite close. In which case, I might be better off staking my LEO now and buying LBI at a slightly increased rate later. Decisions. Decisions.
Thanks for the update by the way . . . 😁
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Do both!!! lol
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I've already powered up. Will definitely be looking to buy some LBI the other side of the airdrop though. 😊
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I really like that idea about the hard cap. It makes a lot of sense and adds more value to the token while still allowing other people to try and get in on the action if they are late to the game. We don't know what kind of money is going to pour into the platform over the next year. It could be a lot. It could be a little, but those new users might want an opportunity to participate. Even though I am greedy and want it all to myself :)
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The number of tokens issues doesnt affect the value of what you hold, in the long term anyway. If there are 200K LBI issued or 1 million, it doesnt matter. With the later, there is more LEO to curate with, to use for other purposed, and more people involved to start sub-projects.
Thus we actually want more people involved since there is the activity part of this project.
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Gotcha
I have to put LBI on my list for future investments.
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cool stuff :)
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Personally I would like to get 300-500 more LBI before the price increase. I have been holding back due to the coming air drops. Not sure I see the air drops happening in the next couple weeks though and I'm not anxious to power down some LEO before the drops.
Maybe this can help solve my dilemma somewhat. :)
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A few people are holding back cause of the airdrop. By the time the airdrop happens and people unstake, they will get less LBI's as the airdrop will be priced into the token by then and im guessing another 4-8 weeks of earnings.
I understand people holding off, bad and good timing. Bad timing cause people are holding big from buying LBI's, good timing cause we are a new project and these airdrops are gonna give us a fantastic boast.
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It's a good problem to have and I'm not overly worried. Where ever the airdrop goes it will work to my benefit. Either way I am still going to end up with some shiny new tokens. :)
A couple questions. I imagine the LEO has to be staked to receive the drop? If I am powering down during the drop will those tokens in power down be ignored during the drop?
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I would think only the ones that actually went from staked to liquid at the time of the snapshot are considered liquid. Thus if your power down in on a Wed but the pic of everyone's holdings is on a Tuesday, the ones that drop the next day are still staked.
But I would verify that with Khal.
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gooddd and just for those who haven't read that
just a small reminder once again
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Thanks :)
Im sure people will still ask , lol
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I bet this concern has already been addressed but here it go anyways…
I want to buy more LBI bu exchanging my LEO, but doesn’t that mean I’ll lose out on the microblogging airdrop?
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Yes, you would lose out because you are converting LEO to LBI. Distributing assets to token holders is not a smart plan for growth, it's sorta the opposite of what we are trying to do.
Thanks for asking and checking out today's post :)
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Keep in mind that the LEO that goes into the LBI account is going to receive the token drop, of which you own a part of. Since this is PoB, we will likely see it benefitting the token value of LBI, thus increasing whatever tokens you have.
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any expectations about the price increase from Lbi in leo tokens in 12 months + dividends at this timeframe? :)
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No clue.
Higher than today is all we know.
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Getting into the wLEO pool is another good angle for the investment fund and it helps LEO and LBI itself. We see constant growth and this is what the fund is all about, if we would teleport in a year from now we should see great results. But until then we can just sit back, relax and see LBI gain value in the number of tokens and value.
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I screwed myself a bit by delegating Leo from my main account to my Leo account. Now I need to wait to undelgate and then wait to unstake to buy more LBI. I just hope that in these moments of waiting, if an airdrop does happen I'll still get it. Does anyone know how airdrops treat tokens that are in the middle of being unstaked?
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