Leofinance: Business Building
LBI hitched its wagon to Leofinance early on. This might turn out to be a sensational decision. The bear market has been rough on everyone. Coin and token prices are down, which affects sentiment. This is what bears do.
However, things are looking up, at least for Leofinance. We recently saw a change in the tokenomics which should favor the platform. Over time, we are going to find this helps to send the token price up.
The inflation was cut due to a change in how the delegators were paid. Previously, the payouts for delegating HP to the curation account came in the form of new LEO. Now, it is being purchased off the open market to pay the delegators.
This obviously puts some buy demand out there each day for LEO. Yet this is only the first phase of the process.
We will cover the next couple phases.
The model that Leofinance is utilizing is simple: generate revenue that is used to buy the token. Under these new scenarios, those holding Leo Power, i.e. LBI, will be rewarded.
LEO is bought off the open market and distributed to the LP holders. This is a way to enhance the return on what is being held.
The first mechanism worthy of mention is the ad revenue mechanism. Leofinance has ads already on them, mostly showing up on Leothreads. This is serving to generate revenue in the form of Bitcoin. Ultimately, the proceeds will be used to buy LEO and distribute it.
It is something that was discussed for over a year. We are likely to see it come into being in the next few months.
Another was recently announced yet is worthy of mention. This is the subscription model similar to Substack. The idea to allow people to create articles behind a paywall which then is accessed via subscription. People can opt to pay a monthly fee, which the platform will take a nominal percentage.
Here we see another revenue generator going into place. The idea is the same, to get more money coming in. It is likely this follows the same concept, buy LEO off the market and distribute it.
That means that, by the end of the year (most likely) we will have 3 automated buy mechanisms in place. The amounts is going to depend upon the success of each project. However, with greater activity comes an increase in revenues.
LBI is primed to ride the coattails of what Leofinance is creating. We are now looking at a year (going forward) where expansion should occur. The last 12 months saw a lot of the foundation going into place.
Things are about to get very interesting.
Article by @taskmaster4450le
Posted Using LeoFinance Alpha