Learning from recent Events

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I've been dealing with crypto for close to 8 years and @ph1102 is also pretty experienced in the crypto field. We both had to admit however that we hadn't anticipated what happened with Luna. It has been quite a chock and not only for us I believe.

I've seen plenty of things going on in the crypto world and I always try to learn from it, to get better and to avoid mistakes in the future. That doesn't mean that I won't fall into any trap, far from it, but I believe I would make more mistakes if I didn't do that. Over time, I've set some basic standards for myself:

Understand what you invest in

For my personal assets but also for Liotes, I always try to make sure that I understand how a project works before I buy a token or asset. Also, I try to figure out how value is created, how it's financed and how sustainable it is. If I don't understand how things work, I try to avoid it.

Never leverage an investment by borrowing money

The way things were going with Luna, people borrowed money to leverage their investment. That's a recipe for crashes. This is what fueled many crises in the normal economy in the past. Why should this be different for crypto?

Are the tokenomics sound ?

With Luna, there were some flaws in the tokenomics. Nowadays, it's so easy to create a token and a project and not every creator foresees the risks attached to it. A project should work in growth times and also when courses crash.

I see in a lot of projects where the supply of a token can explode or is not under control. This should rise question marks because the supply growth is the one parameter that the creators of a project can control. Unfortunately, plenty of hive-engine projects don't really have a strategy regarding supply growth control. If the supply grows endlessly, is the demand growing in the same fashion?

Making choices for Liotes

For the secondary income sources of the Liotes project, we have decided to go through our assets with a critical eye. While doing that, we have discovered some things that arise questions and we will take some decisions accordingly. It's often difficult to find assets that give a nice return and also look healthy from a tokenomics point of view. I believe that the zero risk investment doesn't exist in the crypto world. We try however to come up with what we consider the best solutions even if we know that there are some risks involved.

The numbers of this week

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Liotes

A project run by @ph1102 and @achim03

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31 comments
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I see you have 508 WORKERBEES in the mix. What are those used for and are you doing anything with them to earn more? I've got a few personally, but I just hold them as I don't really know what to do with them.

Talk about "not understanding your investment". lol I'm right smack in the middle of that with this one.

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Staked WORKERBEE tokens are mining BEE tokens, which you can spend on Tribaldex to create a token, use a trading bot, etc... Also, you can vote for Hive-Engine witness with your staked WORKERBEE tokens... (you can support us if you have some here https://tribaldex.com/witnesses... Around 25th place...)

Also, I have created a WORKERBEE pool where people can delegate WB tokens, and once per week, they get "their cut" (100% that is mined + my author rewards + bonus tokens)... You can check out the last post on my personal account (@ph1102) for more details... ;)

I hope this helped some in understanding :) :)

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It makes me think about how brofi removed tribe token delegations for BRO tokens. At least it just seems like many of the tribe tokens just seem far riskier and they can easily just kind of stop running (like the VIBES token).

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Unfortunatelly, I have to agree with you on that... But, I wouldn't blame BROFI for tribe tokens' failures... Every tribe token owner should work on its' token and tokenomics...
That is one of the reasons why we kind of step away from tribe tokens and focus on some other ones...

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You have received a 1UP from @luizeba!

The following @oneup-cartel family members will soon upvote your post:
@leo-curator, @ctp-curator, @bee-curator, @pimp-curator, @vyb-curator, @pob-curator, @neoxag-curator
And they will bring !PIZZA 🍕

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I don't think I even knew there were Hive Engine witnesses...
Well, I just approved Liotes as one of them!

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Thanks for supporting our Liotes Witness :-)

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"Unfortunately, plenty of hive-engine projects don't really have a strategy regarding supply growth control. If the supply grows endlessly, is the demand growing in the same fashion?"

Do you guys have some examples on such tokens here? Or would it be politically incorrect to name them in public. Would like to hear your opinions on the sustainability of said projects and their pitfalls.

Also, regarding your comment on VIBES @jfang003, I believe Liuke from HashKings has signaled his intent to integrate it into the HK system soon. At least that's what I've read from the announcements in the HK Discord.

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Do you guys have some examples on such tokens here?

Unfortunately, there are very few examples where there is a kind of supply growth limitation in place. The general rule for tribes is that they print tokens but there are not many or enough measures in place to reduce the supply. It's great if the supply grows as long as the demand grows in parallel. When the demand doesn't grow as fast as the supply, it will end up with falling prices. The only solution is to be able to reduce the supply with extended and sustainable burning mechanismes or to implement additional use cases that would fire up the demand.

Regarding VIBES we also saw this announcement. Unfortuantely the token doesn't work anymore since it's not possible to claim curation rewards.

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proof of.brain that was paid for.will always work - when tribe token stop being claimable its because the token accounts dont have enough HP for the RCs required!

The more you know!

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So in a nutshell it would be enough to delegate some HP to the account...

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Yes! This same thing happened to SPACO and currently LOTUS. If someone wanted to 'restore' the tribe, the proof of brain would still work as long as it had a HP delegation.

Now that I say it - I haven't tested it - its just a theory we could try.

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Never leverage an investment by borrowing money

Without a doubt this is the best advice, people always get carried away by greed. To go far it is better to take solid steps, you can use leverage but to improve returns not to multiply them by 1,000 that ends badly 99.99% of the time.

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(Edited)

I have to admit that I got lured into that what @achim03 explained... The thing that got me was borrowing and lending stable coins, which, unfortunately, weren't stablecoins... :) Luckily, I didn't have a huge position, so I didn't lose too much...

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(Edited)

If I can say it cruelly, "zero risk investment" never exists in the first place. It's just a bullsh*t. Even Bank Deposit still has a risk, Bankrupt.

Nowadays, it's so easy to create a token and a project, and not every creator foresees the risks attached to it.

Hopefully, I didn't see LUNA as a good one tho. We really should choose carefully one by one based on research. We mustn't be greedy and take all of it. Tokens are already easy to create as you said 😅

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Yes, they are... Tokens are easy to create, and they are CHEAP to create, too... When you combine those two with inexperienced people creating them, you get a big mess... :)

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I think I'll have to take another look at my HE tokens as well. Apart from a few of them, I don't have a significant amount, but it's better to make a decision about the rest. In fact, I got rid of at least half of my tribe tokens in time and don't use them anymore.

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It's hard to sell them, especially ones that we were accumulating for ages, but there is a moment when it has no sense anymore... We have stopped with (strong) accumulating some of our "first picks", but still adding a few every week...
I would dare to say that even some of these "big tribe boys tokens" aren't doing as expected... The more you scratch the surface, the more shady things you see... :)

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(Edited)

Hmm I was just wondering what's your thoughts about ONEUP since it features in Layer 2, given that the value of the token has been decreasing steadily in the recent months?

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The problem with many tribe tokens is exactly what @achim03 wrote in another comment here...

The general rule for tribes is that they print tokens but there are not many or enough measures in place to reduce the supply. It's great if the supply grows as long as the demand grows in parallel. When the demand doesn't grow as fast as the supply, it will end up with falling prices.

I suppose that is happening with ONEUP, and many other tribes out there... I don't see that anything will change in the short term, but we never know what can happen in the long term... Sometimes, broken tokenomics can be fixed...

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Thanks for the great report(and returns!).

How sustainable are the diesel pool returns?

I need LEN and LENM tokens to support Liotes there?

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The return in diesel pools can be quite interesting but it's important to know what type of tokens you get for providing liquidity. For the LEN:LENM pool, we try to provide high quality rewards like AWESOME and CTPSB tokens that not only keep their value but actually grow in value over time.

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(Edited)

This is the real debate. I think the first rule is that a token must be sustainable and if it's not then it's the recipe for fall.
But how to achieve this sustainability?
Combination of balancing many things.
I have mentioned many times that the Liotes tokenomics is one of the more sustainable ones here.
Because

  • it shows the status to members every week, which means it's transparent,
  • growth is slow but stable, which means it's realistic,
  • and last but not least, when you see on the second layer that a token is not working well you remove it more or less on time.

From another point of view, it's true that crypto is always a risk ... but, at the end of the day, if you're involved in crypto, you must also believe in something ...

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Thanks for your feed-back regarding Liotes. It's probably not the most attractive and shiny approach but we believe that it may still be around when other shiny tokens have long disapeared :-)

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Will the liotes project buy an SPS validator node? I think that might be a risk worth taking :)

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We are thinking about it but we are probably not geting into it in the pre-sale. This would immobilise our funds until the nodes go live. So we will wait and see how things evolve.

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