LEO Tokenomics - An Enormous Advantage For The Community
A Unique Opportunity
The launch of Threads, together with the new Leofinance UI, has probably been the most beneficial move in terms of adoption, token value, and the community. However, the potential first needs to be understood and then followed by appropriate action. These changes mean very little outside of community participation. That being said, the appropriate response from the community can bring about an outcome that benefits everyone within the LeoVerse.
The ad revenue model is a brilliant idea in terms of LEO buybacks, as well as the redistribution model. Essentially, this makes every community member with staked LEO a partner. The profits are redistributed to token holders according to their stake. This provides additional motivation to the already existing incentive of VP. The more LEO you hold, the greater your voting power. However, it doesn’t end there. It gets a lot better!
Token value is often a problem when it comes to incentivized platforms and their respective tokens. These tokens often face significant selling pressure. Fortunately, for Hive, two very important use cases promote the purchasing and holding of Hive and HE tokens. These are VP and RC. Every user requires resource credits in order to transact on the blockchain, and without voting power, you haven’t much influence. This leads me to the third catalyst, which is currently only applicable to LEO.
The Community Holds The Power
LEO has a rather unique “secret weapon” in terms of token appreciation. Outside of the traditional dynamics that dictate price, LEO has the upper hand. However, this is only true if the community participates. It’s a simple formula, and yet not everyone has realized how powerful it truly is. LEO is a micro-cap that still experiences extremely low trading volumes. Essentially, this creates an enormous catalyst for price appreciation when ad revenue is deployed to purchase LEO directly on the open market.
Furthermore, this dynamic suggests that the community can legitimately increase the price of LEO by increasing activity and interaction on Threads. It’s a win/win scenario. By being more engaged, you get to accumulate more LEO. Furthermore, being more active creates more ad revenue, which ultimately has the power to drive the price of LEO higher. Those who get this have understood that heavy engagement means the following:
More tokens… at a higher value = multiplied earnings
However, as I mentioned earlier, this dynamic only truly kicks in once the community gets behind this idea and begins pushing in the right direction. This will also provide great opportunities in terms of “stress tests”. The system needs to be pushed, in order to increase and improve scalability. At the end of the day, everyone benefits.
Final Thoughts
The current Leofinance model, and more specifically, Threads, puts the power into the hands of the community. Most communities are literally crying to be in a position like this. Well, the power is within our hands, Lions! This is an unparalleled opportunity, and in many ways, is way more powerful at this stage of the game. It’s great to see that there is already a Threads Army beginning to develop. What we need now is to grow stronger.
It’s always been said that strong communities are at the heart of successful projects, and to a large extent, that’s very much true. It’s time to muscle up and begin putting that strength to good use. See you on Threads… and have a great weekend!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
