Should we? or should we not?
Authored by @silverstackeruk
Hello, hello, hello. Today we are going to look into how LBI token issuing has been going since we increased the price from 1 LEO to 1.1 LEO around 11 days back. We are still issuing some tokens but nowhere near the same amount as before. Let's look into it.
I do not have all the exact numbers at hand and im not going to dig them out because I know they are small numbers. Off the top of my head, I would say that we are currently issuing 2-15 LBI tokens per day. I did expect for people to buy less but it looks like everybody's wallet are filled as token issuing has flatlined.
What does this mean?
I think it means we have to look into hard capping the token. This seems very premature to me as the project is only 3 months old but if people are not buying because they either have hit their LBI target are think it's expensive now it's 1.10 LEO. We all know some are holding off to get airdrops but i dont think that factors in that much.
There are currently 217,920 LBI's in circulation. When content team rewards are considered, a hard cap of 272,400 would be our final number. Please keep in mind that the content team rewards are only distributed when performance targets (price targets) are hit. This ensures your investment is worth more before we get rewarded. Issuing a total of 220k would land us on a hard cap of 275k. Issuing 240k would land us on a 300k hard cap. Could we issue another 22k LBI. Seems like a lot.
There is no boat to miss
I could flip a coin on hard capping because it's still very early on. People maybe think it's expensive now and they missed out. You know, for the past 12 months, I had many people say to me "I'd like to buy some SPI (hive-engine token) but I think I missed out" They told me this when SPI tokens were 2 HIVE each, and 3 HIVE and 4 and 5,6,7 HIVE but they dont understand the token concept and that's why they think they have missed out. I try to explain but they dont listen and I give up. The same thing will happen to LBI. People think it was only 1 LEO a few weeks back, now it's 1.10 LEO, damn I missed out. WRONG!!!
If you understand the concept, you'll understand there is no boat to be missed. Getting in at any time is pretty much the same for something that only increases in value. If you told someone you had put $1000 in a bank account 20 years back that pays 5% a year in interest and now you have $2000 and they replied back, I'd like to get into that but I think im late to the party. You think of them as pretty stupid right?
LBI is valued in LEO, taskmaster4450 wrote about this yesterday. We earn curation and content rewards in LEO. When our LEO holdings only increase, the price of LBI price will only increase. Same as when you save fiat with the bank and they give you back more fiat as interest, your bank balance only increases? right?. The same thing for LBI but with LEO tokens instead of fiat, replace interest from the bank with LEO curation and content earnings. LEO is a base currency for LBI. I know im preaching to the choir here but if only 1-2 people can understand this better, it's worth putting in a post.
My point is the LBI token is never overpriced. There is no boat to miss and it's never too late to join the party. We have issued a lot of tokens and my guess is everyone has what they want. We did announce the project 3 weeks before launch and people had saved their LEO waiting for it. I'd personally like to see if we can issue out another 22k and aim for a 300k hard cap.
Things to consider before we consider hard capping
Just throwing these thoughts out there but I saw a recent post from Aggroed where he outlays a few plans and new features for hive-engine. One of the future services they aim to provide is a token wrapping service meaning LBI could be traded on Uniswap. For what propose?, I do not know but the option is there and we might wanna hold back some tokens for that. We can always burn tokens but we can't create anymore.
Another thing to consider is new people are joining LeoFinanace every day and we might not be able to issue many tokens today but in 6 months time our chances might improve. We could consider a soft cap of the token and putting LBI token issuing on ice for 6 months. After 6 months, we'll have lots of new faces eager to get involved and project blank will be released and some people might reallocate some of their LEO to LBI.
Hmm, that pretty much all I can think of right now. Im, sure there would be other reasons but none are coming to head.
Share your thoughts
What do you think about hard capping the token? There is no planned vote for it are anything, just some casual feedback required to give an idea what token holders are thinking.
Oh, and BTW, I'll not be hosting any further LBI votes as we have selected our Governance team. Its was announced on discord but I think there are only around 30 members in there so far. Here's an invite to the LBI Server. I could tell you the 3 people in the team but I'd rather you click the link and joined the server, haha. It's the last post in announcements.
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I didn't think token issuance would drop so much after the price changed. I would of bought split half HP and LBI after the price changed but the supposed new microblogging is suppose to come out soon. I have been stacking my LP to get more tokens when they airdrop. I was planning to exchange for some LBI afterwards if it is still open then.
As for whether we should hard capping it, I already have some LBI. While I would prefer more, I can be content with what I have. So for me, I can't decide. On one hand, I can collect more and on the other hand, it makes my tokens more valuable.
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Yeah, its a real flip a coin sorta thing. I would be happy either way as well so thought i'd ask for some feedback.
Thanks for taking the time to stop by :)
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Hard capped tokens is always a good thing. I hate inflation...
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Preach it,
I think most will like a hardcap, it's normally popular
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The more LBI sold, the more money there is in the fund that can be put to work.
Imagine if we stopped at 25K LBI sold and had 25K LEO to curate with. The situation would not be as prosperous as now.
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I don't know much about this sort of thing, but the soft cap and revisit in 6 months sounds fine to me. In six months I might want to get some more LBI's but I never know what the future will hold.
I sorta like that idea as well. Basically, stop issuing tokens now and then have a huge last blow out sale in 6 months. Best of both
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!ENGAGE 20
ENGAGEtokens.I'd say stick to the original plan of the hard cap and bung a response to the question about lbi price/missing the boat in your FAQ post so you don't have to keep answering the question.
1.1:1 is still a great deal, blimey, if people are worried about that then they don't really understand what the concept of long term investment is!
That's a good idea about the FAQ, it's made it to the whiteboard so it'll get done :)
And yea, i see 1.10 LEO as entry level still :)
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Ah, I do like a whiteboard! Really glad I set mine up last year during lockdown, just helped clear things up on the to do list which forever evolves!
How long will it be 1.1:1 for? Is it up in monthly increments?
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Well, I think there may be many factors contributing to the decline of LBI requests. One of it would have been the increase in price to 1.1 LEO. For me, the shift sounded early. At least 3 months would have been allowed. On the other hand, some persons bought into LBI when LEO had scaled to 4 HIVE and looks like they're running into a loss with the recent price. I think we should re-issue LBI at 1 LEO for now till end of Feb.
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You cannot link LBI with HIVE and LEO at the same time. It is based on LEO, so the HIVE price doesn't matter when you look at it closely.
What else do you do if HIVE price goes up but LEO doesn't or LEO goes up but HIVE doesn't? This otherwise puts us in a dilemma when trying to consider both.
LBI is based on LEO and so it doesn't matter if HIVE rises or falls, what matters is how the price of LBI compares to LEO.
LBI was created to more or less invest and earn LEO
I can only speak for myself so this is my opinion. I didn't stop buying LBI because of the price raise. The price is still ok. I'm still investing in LBI but look at the market and buying if the price is convenient for me. The airdrop is indeed a factor.
I've been pushing hard on LBI before the price change, to be able to get as many as possible, and then invest in Leo till the airdrop. Maybe I'm not the only one. My plan is still to invest in both, little by little. And truly believe we'll have more people buying after the airdrop, including me. Just my two cents.
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Yeah same here the airdrop is a big factor for me! I want LBI but I also need to save up for the airdrop so I don’t miss it.
Nice to know and i think a hard capped LBI will be good for the price. I have to reload my small position😁
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I suppose one of the reasons that there are less LBI tokens issued is that the LBI price on hive-engine usually is still under 1.10 Leo. Which means people who want to accumulate LBI more often choose to buy them from others rather than directly from LBI. Although I think it's stupid to sell your LBI already, I do understand that people like to pay less for the same token on HE than the one issued by the LBI account. Please wait a bit more before capping, because I personally want some more (issued) tokens, but don't have the Leo/Hive to buy them yet.
Yep if it's cheaper to buy on HE ppl will buy it there. We just need to wait a little longer and it will regulate itself again
Those who have already hit their LBI target would prefer hardcapping it now but those who buys LBI with daily earned LEO token would want it to continue.
Will it be too silly to get community vote on this?
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That is what I was thinking about as well.
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I don't believe anything will happen without a vote. This is just a brainstorming session at this point.
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Great :) okay but still this seems like a easy decision to me.
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I am buying at least 1LBI from my hive/Leo payout. It ain't much but I can have at least 200LBI before the year runs out.
I don't mind the hard cap. Knowing this isn't infinite is good in a way so investors know their investment won't be diluted over time
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I'm going to propose something that could be a real headache for the gov team.
In my opinion the biggest hurdle is the airdrop(s).
Could we put in place something like:
LBI will have more LEO, users interested by the airdrop will get those tokens and they will increase their LBI stake too.
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sorry, but you cant have your cake and eat it too.
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We are talking about an airdrop, timing is just lucky. I don’t think LBI project started with this airdrop in mind, and planned some growth based on this.
First and main objective was to get as many LEO as possible.
LBI is happy to get more LEO, and yes it might get less airdrop but is it really vital for the project ?
I think LBI will be better with more LEO staked even if there is not the airdrop factor. And I’m not talking about the full airdrop, just the newly distributed LBI tokens.
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I’m cost dollar averaging so price does not matter. I gong to accumulate until I hit my token quantity goal not price goal.
That's only half true, because you may create new token to replace the current one. I don't know if it would be possible to replace the token with the same name LBI as the, but there's an option of creating LBI2 on the table if the situation is dire enough.
Edit:
I'm a fan of a hardcapping but it doesn't really mean we can't have a softcap with let's say 50k LBI (+plus according content team reward portion) left in ice for 6 months or so.
Yeah SPI did that when it swapped over from SE to HE.
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I think there’s also the component for me personally, that could affect others. I got to 100 LBI recently and the change to 1.1 Leo per token was a little tough but with the project and air drop stuff being talked about on the Leo side coming in a few weeks, once I hit my goal for the moment I went back to stacking and saving all my Leo so that I get a better airdrop. Could be a factor with others too! Give it a few weeks and see what happens?
We just have to wait a little longer. The price of 1.1 Leo/LBI has not yet been reached on HE, because the real value of LBI is also not yet 1.1 LEO. The 1.1 was set a bit above the real value to not have to adjust the price too often.
I would simply wait a little longer before panicking and deciding something. At the moment it is cheaper to buy LBI on HE.
If in 4 weeks the purchases are still low, then we can consider ending the sale.
The time after the LEO airdrop will be interesting
I would set a hardcap at 300k tokens, stop sales at the end of March, reserve some tokens for curations and other essential purposes, and airdrop the rest across existing LBI holders :).
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After that you could set buy/sell walls on the Hive Engine with a profit, similar to what they do with DHEDGE. I very much like that approach as it generates income for token holders while also adding liquidity to the market.
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I think it's too early to hardcap LBI. I'm planning on buying more with my earnings from LEO curation. For now howevwr, I'm putting those into Leo Power because of the airdrop. I guess I'm not the only one.
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I have 10 LBI but I have set my goal to at least 50 but I am waiting for LEO airdrop and I think many users are doing the same thing.
As for the hard cap I think it's a good thing and I will try to buy more LBI before the hard cap is reached.
!BEER
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I don't think we should lower the hard cap. Like you said, I think a lot more money is going to be flowing in over the next couple of months and those new investors might want to try to get in. Especially after about four or five months when dividends start getting paid out (assuming people vote to push it back again). I think when people can physically see the potential you will have a lot of people jumping back in.
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Didn't read the whole post, but chill on any decisions until after project blank has airdropped. No one is going to buy LBI until then.
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maybe lbi should have an airdrop as well, they seem like all the rage on this blockchain recently :P
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Cant really do an airdrop without giving money away. LBI tokens are backed so giving away 1000 tokens would cost us 1k LEO.
Airdrops dont cost anything for speculative tokens.
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no LBI, some other token you invent :P
Keep it open until after the airdrop as I believe others will buy then. I am still accumulating very slowly and will carry on for months to come still as I am not done yet. I think leaving it open will benefit LBI as 300 000 sounds like a decent number which I think we can fill.
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we are still really early in the game - i think we should wait minimum 3 months before worrying about this.
we just barely have governance running.
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People want airdrop that's why they don't buy LBI.
You postponed the reward payout. People don't like that.
Constantly changing the rules. People hate that.
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I believe there is no need to hard cap too early when we are already increasing the issue price with backed value. We already know that people are excited when a new project is launched and many try to grab early causing high sales and interests and it goes down exponential. But when the project starts delivering, people would want to get or the new comers who didn't know about project. So if we issue at backed price means there is no significant loss to early adopter as the late adopters are paying premium/backed value. So down the road we can always issue more tokens and invest that in more terms. We already have a hard cap of 1 million, we need to give it time to reach that. Consider, hundreds if not thousands people joining through project blank and they come to know about hive and leo and the lbi project. We should at least keep some for them.
So i would recommend to get it rolling at whatever pace it is going and charge the backed value either that is 1.1 or 1.5 or 3 Leo. When we are looking at long run it would be better.
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The main factor that people wait with buying is that 1 LBI = 1.0371 LEO without taking in account the teams stake that will also dilute the value (of course the team needs to be paid as it is doing a pretty good job) and psychological paying 1.1 for 1.03 is a hard thing to do. On the long term the value will increase, of course over 1.1 by far.
The second factor would be the airdrop that is coming closer day by day so there is FOMO for this.
I still would wait with the hardcap or raise it to 500k LBI and doing the first dividend payments in LBI with the increased stake value when the payments start. This would have at todays price a value of $320k which is a huge some, that grows slower than a smaller sum, but has a bigger leverage in the end and can tackle bigger projects.
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You explained it so well that it is impossible not to understand. What I'm wondering is will the awards for content writers end after a while? I quit blogging and became a new member here and won my first leo coins. I do not want to think that the authorship awards on this site will end. I wish we had a great site not only to write in the field of crypto. I think, for example, if this site is shared in normal categories, the leo coin can become more valuable.
Yours truly.
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True that. I am about to get myself some more LBI with my main account @vincentnijman
Keep up the good work and continue sharing your thoughts with us. It's much appreciated. Communication is key now more than ever before :<)
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I think a lot of folks are waiting to see what happens with the air drop. Whether LEO will go up or down in the short term and that might be the reason for LBI slow sales till we know what happens in the short run with LEO. Just my 2 cents worth
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I still need to decide about my LBI plans, but the project looks good to me.
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