Authored by: @hetty-rowan
Your vote is needed again!
Today I would normally describe a coin, but following the post from our governance team, here today we are going to take a look at what this proposal entails, and what it COULD mean for the people holding LBI. And I'll be very clear ... this is not set in stone!
Many things happened in a short period
Because as this post shows, the issuing of new tokens is on the decline. Which can also be understood. Many things have happened in the short time that LBI has been around. Many factors that can have influenced people's decisions whether to buy LBI tokens, and which play a role in their decision WHERE to buy those new tokens. Because yes indeed, there is also a possibility to buy these tokens via the Hive-Engine or Leodex market. And because people want to jump headlong into other projects, it may just happen that you can find LBI cheaper there than with the official account of @lbi-token itself.
Thinking about a Hard Cap!
Everyone is entitled to deal with his/her LBI as they wish. But this of course has an influence on how many tokens we issue from the official account. And now that almost no new tokens are being issued by us, it is time to start thinking about a hard cap!
Maximum LBI that will circulate ever!
Although we cannot technically speak of a real hard cap here, because a real hard cap is really programmed into the blockchain and that also just really indicates the maximum number of tokens that can ever exist (think Bitcoin, 21 million or Yearn Finance, only 30,000). In the case of LBI it is different because our LBI has already been created in advance. Only in the case of our chosen Hard Cap does it just mean that the @lbi-token account will stop issuing new tokens, and that there will be no more LBI in circulation than there is now! The tokens that are still on our official account will be sent to @null and used there. People who still want to buy LBI will have to do this via the Hive-Engine or Leodex markets. Because that will of course continue to exist.
Always advantages and disadvantages
And everything where you can see advantages also has disadvantages. Although at the moment I would not like to speak of disadvantages. I don't see that many disadvantages now. Yes, it may be more difficult to buy LBI, but that's not really a disadvantage. Because something that is more difficult to get is also more appreciated, and that will hopefully also ensure that the token is more appreciated. You would expect this to be reflected in an increasing price, also on the Hive-Engine market. Of course, we know that LBI in LEO must be valued. And that has been going well since the beginning of LBI. But maintaining the value of the token in the Hive-Engine and Leodex market is a different story. A Hard Cap could work with that. Let's be honest. Not every day there are 10K LBI's on the market for a bargain price. And even though I point out to this now, it's not a worry at all because the real value of LBI has nothing to do with these markets in fact.
So let's take a look at the benefits of a Hard Cap.
- The scarcity is going to kick in, because no new tokens are going to be issued.
- The price is likely to go up for that reason.
- It is clear to everyone how much LBI will ever circulate.
- We can focus on growing the value without worrying about issuing new tokens.
- The value of LBI MAYBE grows faster because no more new tokens will be created.
Now these are not certainties, I'm just thinking and assuming here, so don't pin me to this. Unfortunately I have not been given clairvoyance … if only it were true. LOL.
But no matter how I look at it, I really only see advantages in a possible Hard Cap from the LBI token.
Use your voice and vote!
If you keep LBI in your account, and you had not yet seen the post from the governance account, please head over to the account and click on the post link. Leave your opinion in a comment so that your vote is also counted.
And of course I would like to see you again tomorrow at the weekly LBI contest!
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