To Postpone Or Not To Postpone - LBI Situation As I See It

About two days ago the LBI governance team authored a post, a poll actually asking shareholders to vote about weather Should LBI postpone weekly dividends for another 3 months.

If yes wins, we can review our position in 3 months. The longer the dividend payment is been held off, the stronger the foundation is for the project, as everything is reinvested.

If no wins, we will pay out LBIs first weekly dividend on the 28th of March. That would be 50% of earnings to be split up between token holders, 40% going to reinvestment and 10% going to the @spinvest-leo for @silverstackeruk's services. source

The vote will end when the post expires, votes will be counted and decision made based on the result of the voting. So far the votes are mixed.

• 23 voted for NO - LBI shouldn't postpone weekly dividends for another 3 months
• 26 voted for YES - LBI should postpone weekly dividends for another 3 months

This result itself is not accurate as votes have to be multiplied with the number of votes each shareholder have based on how much LBI holds, plus it's only been two days, so this may change. I'm not going to do the numbers right now as it takes time and my time will be wasted as it's not the final result.

However, it's already clear that the community is split in half (roughly), some want dividends paid, others want dividends to be reinvested.

source

If 1 LBI will get you 0.00245 at this point, this means 1000 LBI tokens can get you 2.45 LEO. In my case 1127 LBI tokens entitles me to 2.76115 LEO at this point.

I voted YES, meaning LBI should postpone weekly dividends for another 3 months because even though I'm extremely happy and grateful for what LBI can offer, my stake is not high enough to earn a substantial amount in three months, so I'd rather see it reinvested to make more.

@cryptoandcoffee had a port yesterday about the matter and quite a lot of people expressed their opinion. Some are for, others against as the voting shows.

I can understand both sides as we all have different resources and also different plans. This is normal.

The official selling price of LBI is 1.10 LEO if memory serves me well, while the price on the secondary market often is way below 1 LEO.

source

At the moment of writing 1 LEO is at 3.118 HIVE...

source

... while 1 LBI is at 2.99 HIVE.

No wonder less and less tokens are issued if the secondary market offers a better deal. Now you may ask why is cheaper to buy LBI at the secondary market?

This is not something scientific, I'm just stating the obvious.

This is how things stand right now. LEO is at $1.07 that may be the ATH of LEO at the moment. Some LBI holders see a profit already, that's why they are selling.

In my opinion the situation is not necessarily bad. LBI is changing wallets, those who want a quick profit now are selling while those who are thinking long term are buying. LBI is not issued but sold and bought on the secondary market. Obviously the total number of issued tokens is not growing, but this is a process that can take awhile, it won't go on forever because those who are in for a quick profit will run out of LBI and will be less and less LBI on the market. Correct me if I'm wrong.

Back to the main topic of the post, postpone dividend paying or not, based on the result of voting, good thing we can vote and the majority can decide. Even though I voted for dividends to be withheld and reinvested, I'll be ok with whatever the community decides.

I can foresee some dumping as those who voted for no postponement will not be happy. With the dividends we get, we can always buy more LBI and strengthen our portfolio.

There are a lot of opportunities now, we can sell, trade, invest and reinvest. Which one is more profitable? That is a good question and the answer differs from user to user as we all see things in a different way, also have different understanding of things. I also see this as a natural selection, without restrictions.

source

As you can see, even if dividends are paid out, some of those dividends can end up reinvested in a way or another, which is good.

source

Last but not least, I'd like to see more LBI holder voting. We have a system that gives holders a chance to express their opinion and we should take advantage of it. Letting others decide for you could have serious consequences, so this is the moment, right now, right here! Go vote!

Posted Using LeoFinance ^Beta