Memory Refresh

in LeoFinance2 months ago (edited)

Authored by: @hetty-rowan


Today I want to start with this image posted by @silverstackeruk 3 months ago.



EfcLDDAkyqgrWe7KyyRHXzeiP1CJfhMppnSKMZVKJNX5Ea9ZKnAK9AYT3wZ8s73qaviLLaS5CuvGHBv7u1Cphskv74Fti.png



Time for a memory refresh

This week I have still been trading far too little and more busy harvesting, and unfortunately I had to give that up too as the long-awaited bill has arrived. All that aside. I have been a bit more active in discord again, and that was where the inspiration for today's post originated.

The conversation was about LBI, and the fact that there is a proposal to postpone the dividends for another 3 months.

First, let me say that LBI would not postpone the dividends because we do not want to pay. But simply to make the basis of LBI even stronger so that BETTER dividends can be paid later. As investors may know, doubling your fund for the first time is the hardest. After that it becomes easier because the effect of 'compounding' will weigh more heavily. And as you may know, LBI has a significant number of LEOs staked on the account, making it a significant investment fund at this LEO price.

What we currently earn from posting and curation is actually only a small drop when you put this in relation to the fund we have to grow. It may seem like a lot, but the overall picture is a little different. I would suggest for everyone to keep a close eye on the saturdays post from this account. Every week @silverstackeruk updates everybody with the latest info about our earnings and the token value!

At the moment that LBI would pay dividends, these earnings, and that are only the earnings of the posting and of the curation, are divided into 3 pieces. Of which 50% would be used to pay the dividends. And yes, for those wondering, dividends are paid in LEO. LBI is fully tied to LEO. 40% of the earnings will be used to grow LBI, and 10% will be paid to SPI-LEO for @silverstackeruk's services.

Dividends

Okay, while we're on the subject of dividends. Yes LBI will pay dividends. But is that the main goal of LBI? The discussion I encountered in discord made me suspect that there are people who have bought LBI, just for those dividends, and actually don't realize that the main goal of LBI is not about dividends at all.

LBI is not a dividend token, but an investment token for the long term hodl.

Yes, we are going to pay dividends, but you should mainly see that as an extra bonus because you are holding LBI.

What LBI is, is quite another story. It's not a token to get rich in the short term from weekly dividends that would blow your style. LBI is an investment token that will increase in value over time! And that could take a long time, but that's why we said from the beginning, “LBI is a long-term investment, a GET RICH SLOW token”. By providing a good basis, LBI can earn more and more, and because we earn more, we can lock more and more LEO in the account, That is why for every LBI that circulates at least 1.10 LEO is currently staked.

With a fund the size of LBI, it takes longer to build a solid foundation, and of course the CUB airdrop has helped very well with that. And it helps very well on a daily basis. But as you can understand it needs more to really grow.

At the moment we cannot complain at all about the growth that LBI is experiencing, and which is steadily continuing. But now with the off-chain investments, a risk factor has been built in that has its influence, and which adds an uncertain factor to the dull certainty of growth that LBI knew.

For people who have just joined, or who have been holding LBI for some time and only base the value on what they see in their Hive-Engine wallet, a brief explanation.

LBI is an investment token that is tied to LEO. For every LBI circulating, at least 1 LEO has been staked on the LBI account. The LEO you pay in @lbi-token when you buy LBI is staked immediately, and does NOT count towards the earnings. Not even in the increase in value. Because we need at least 1.10 LEO per 1 LBI to be able to continue our growth.

Earnings

The increase in value of LBI can only happen through the earnings that @ lbi-token gets. And those earnings have come from 3 streams for a few weeks now. The first is to post the @lbi-token account here on LEO. The second is the curation via @lbi-token account. And recently via Cubdefi.

In the future, LBI will have multiple off-chain investments, and on-chain earnings will slowly play a smaller factor in LBI's growth. But currently LBI's on-chain earnings are still LBI's most important growth factor.

HODL

As long as you don't sell your tokens, you can't lose any value for your LBI purchase. I overheard someone claiming to have bought 15 tokens for about $30 and thought to myself… Hmmm, how did you get to that amount? Until I realized that these tokens were probably bought through the Hive engine market with Hive. If this person had bought his tokens with LEO from LBI itself, this person would have bought at least half cheaper, or even cheaper. Since there is a good chance that LEO was also considerably cheaper back in these days!

However, if you hold onto LBI you can be sure that LBI will not lose any value in terms of LEO. And that's exactly why LBI is valued in LEO, and also the way LBI was set up to start.

Now a short summary of LBI ...

  • We have been around since December 7, 2020
  • Every week, LBI income is good for slow but steady LBI growth
  • On December 7 you could buy LBI for 1 LEO per LBI
  • In 13 weeks, LBI has grown from 1 LEO per LBI to 1.10 LEO per LBI
  • We recently launched our first off-chain investment in the form of CUB
  • The community decided 3 months ago to postpone the dividends for another 3 months in order to ensure that the base of LBI could grow faster in the beginning
  • There are currently approximately 200K LBIs in circulation
  • There is currently a vote to postpone the dividends for another 3 months
  • 1 LBI is worth 1.10 LEO in just 13 weeks

Questions

I am not the best person to explain everything. But if you have any questions, you can always talk to the founder of LBI, @silverstackeruk, or @taskmaster4450le. LBI has a discord, you can also go there with your questions. And of course I will continue to do my very best to answer this if necessary.

For now, I wish everyone a good Sunday and I would say… See you tomorrow with a new post from @ lbi-token



lbi.png

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We should wait for another 3 month for pay dividend. I voted for it.

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It has always been a long-term investment for me. I like the idea that its value will go up with time even if I do nothing. This is why I don't mind letting the account grow because it will be better in the long term. If we pay out dividends now, then it just means you get some short-term gains but after a while, you will get back more in dividends in around a year. This is because the starting line of the dividends has changed.

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With paying out dividends now the account will continue to grow, but much slower ... and the dividends are not that high to start with. If we can delay one more time, we all will benefit from that. More earning for LBI is a higher dividend payout in the end.

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FWIW, I’d be fine with delaying dividends for another three months.

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Delaying the dividends for another three months now will be good for higher dividends in the end.

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That is what I voted for. I am not sure where the vote will come in at.

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For now it looks like the dividends will be delayed

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I've always seen LBI as a long-term investment rather than a dividends token, I know people wants to have profits for whatever they stake but then understanding the goal of the token is essential to understanding why we have people would chose to invest in LBI in the first place

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That is exactly what LBI is meant to be, a long-term investment. And yes, of course people want to have profits for their stake, but it was never meant to be the main goal for LBI.

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Thank for detailing out how LBI works and what are its plans!!! The base is getting stronger with each passing quarter. I am up for "Building strong foundation to build more foundations" 😉

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Thank you for your comment, yes the base is getting stronger and stronger, and in the end everybody will benefit from that.

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@hetty-rowan, Looking forward to it. 👍

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Thanks for making this perfectly clear once more. Quite frankly, I wasn't entirely sure about this myself, although I very well see the benefit of long-term growth and compounding effects. It is like holding a LEO GOLD token, that grows larger and larger to the relative value of LEO itself. The dividend payouts are merely the icing on the cake and will grow much larger, the longer we withhold said dividends.

We tend to forget that, so once in a while it's good to explain it again. There are also maybe new people around who have no clue about LBI. People who have bought in, but don't know what they bought.

Exactly the dividends are the icing on the cake, but without the icing the cake itself is already delicious.

And yes, with delaying dividends now, we all will benefit later.

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Get rich slowly, that is the basic premise.

It is not where you LBI holdings are today that is of concern: where will they be 5 or 10 years from now?

The idea is to keep growing the value of the LBI account over time. That is why the weekly report is put up. @silverstackeruk is tracking the path of the different investments. We want to keep all those trends going up if we can. This will allow each LBI token to be worth more money.

Ultimately, the more in the pot, the more we can leverage it for greater returns.

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I have nothing to add to this.

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So if I understand correctly, besides the dividends part, the token is like holding a share into a company and that's where the value comes from?

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The value is coming from the fact that for every LBI that is circulating 1.10 LEO is locked up forever. That's why LBI is valued in LEO.

You pay LBI 110 LEO, you get 100 LBI. LBI locks up this 110 LEO in the account, is going to write and curate, earns more LEO because the stake has grown. For this earned LEO's from posting and curating there are no LBI's in circulation. You see it? That's how LBI grows in value over time. There are more LEO's locked up in the account, than there are LBI's in circulation.

This can maybe also benefit the value of LEO because there are less LEO's on the market. So LBI is also adding to the scarcity of LEO.

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I see. LBI is multiplying that initial 1.1 Leo investment and making it worth let's say 2 Leo in one year ( just some random number ). Thanks for helping me understand how it works :)

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Thanks for stating this once again. I for one see lbi as a real long term investment not something to make quick profit from.

So I have no problem if the dividend get postponed (I feel it's better if it is). All I care is for LBi to gain real value overtime as Leo as increases

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Thank you for your comment. And like the image above says, LBI will grow overtime, that's a fact.

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I voted for no, to give each LBI holder the possibility to reinvest dividends in more LBI or do something else with them. But I'm ok with yes. I'm not in a hurry.

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I can see where you're coming from, but for most of the smaller token holders the dividends would be really very small. Something like 0.005 leo, what would you think you can do with that small dividends? If LBI can reinvest for another 3 months that 0.005 leo could maybe grow to 0.10 leo to start with.

Postponing now will mean more dividend payout when we start. And in the end, more dividends earned in a shorter term.

But that was not the point of my post here. The point was that I wanted to explain that investing in LBI is investing in a token for the long term, and that the dividends should not be the main reason to buy LBI at all.

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Something like 0.005 leo

Is this per LBI token? That might be too low, I agree.

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Short term or long term?
Generally, the best and longest-lasting investments are those that look at the long term.
Great explanation of the benefits of deferring dividends and I think it is the best choice in my opinion
!BEER

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Thank you ... I agree. Long term wins most of the times, although I can see some benefits for short term wins. But that's not LBI's goal.

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Very well said! Nice post. I hope this clears some things up for those who are confused!

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Thank you. I hope so too!

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the compound is the best thing.

Plant seeds, farm, plant more seeds farm more. The secret of compounding :)

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