The Power of Rewarding Authors With Second Layer Tokenization

in LeoFinance7 months ago

The Power of Rewarding Authors With Second Layer Tokenization.png

Over the past year or so, a hotly debated topic around tokenized rewards has happened across the Hive blockchain. Some say that we should get rid of the Hive rewards pool altogether and focus on tokenized rewards in other forms - either via an SMT or via a second layer token.

Others argue against that point. Saying that the Hive rewards pool is the only thing keeping people around on this blockchain. Here at LeoFinance, we've been doing a monthly report to show our top earning others and compare their rewards in LEO to their rewards paid in HIVE.

Many of these authors now earn far more in USD terms from LEO token rewards than from HIVE rewards. There's also the key point that content discovery on LeoFinance is far superior to Hive - this is another great benefit to being a targeted community that is well moderated. There isn't much to debate on LeoFinance: we know what content is good and what content isn't. On Hive, the topics are more broad and arguments are had over the relevance and value of content.

LEO has skyrocketed in value over the past 30 days. This has been due to several factors:

With this rise in price, we've seen a corresponding rise in users, LEO POWER stakeholders and authors. The value of LEO increasing also gives rise to greater rewards on our platform in USD terms.

For this author reward report, we gathered the data for the top 25 authors on LeoFinance (based on LEO earned) and compared their author rewards in both LEO and HIVE. We took the average price of LEO and the average price of HIVE over the past 30 days to calculate the USD value of these rewards:

  • Average HIVE price in September: $0.175 USD
  • Average LEO price in September: $0.121 USD

Keep in mind that HIVE is now trading at $0.147 USD and LEO is now trading at $0.261 USD. The following author numbers would be skewed even more favorably in LEO's favor if we took today's prices, but instead we use the average prices throughout the month to simulate the real-time value of rewards as the authors are paid out instead of assuming that users would HODL/Stake their LEO/HIVE and wait to sell at a higher price.

Top 25 LEO Authors

This chart shows the top 25 authors on LeoFinance - ranked by how much LEO they earn. In the first column, you see the amount of LEO tokens earned over the past 30 days. The second column shows the total amount of HIVE tokens they earned. Following those are the USD values of the LEO and HIVE they earned (calculated using the monthly average price of LEO/HIVE - $0.121 and $0.175, respectively):


Top 25 Authors By % of Earnings Represented by LEO

This chart shows those same 25 authors, but it adds the total LEO $ and HIVE $ earnings they received over the past 30 days and then it calculates the % of those earnings that come only from LEO. This essentially shows the dominance of LEO earnings as contrasted with their Hive earnings:

RankAuthorTotal Rewards $LEO %

These 25 authors earned a total of $9,078 USD in HIVE + LEO rewards over the past 30 days.

A staggering 31% of these total earnings come exclusively in the form of LEO rewards: the USD value of LEO ONLY earnings by these authors was $3,977 USD for the past 30 days.

Some of these users are among the highest rewarded on the Hive blockchain (in HIVE only terms). Which means that it's even harder to "flippen" their rewards and get them to earn a higher % of rewards from LEO as compared to their HIVE rewards. Authors like @jrcornel, @khaleelkazi, @tarazkp, @taskmaster4450, etc. What's interesting is that their rewards from LEO still represent a very significant portion of their total earnings.

Just for fun, if we were to take these LEO / HIVE rewards at today's prices rather than the last 30 day average, you'd end up with these total earnings for the month:

Interestingly enough, the top authors earned almost exactly the same amount of LEO tokens as they earned in HIVE tokens: 32,866 LEO and 32,313 HIVE.

The totals at today's prices:

  • $4,749.99 USD value of rewards paid out in HIVE (last 30 days)
  • $8,578.05 USD value of rewards paid out in LEO (last 30 days)
  • $13,328.04 USD in total rewards paid out in the last 30 days

With today's prices, LEO would represent 64% of the total rewards earned by these 25 authors in the last 30 days.

I personally think this trend will continue but one of the main things that excites me is that we're proving the model that tokenized rewards pools OUTSIDE of just using the native HIVE pool can be an effective way to reward authors.

In my opinion, this is the most effective way to earn rewards. Join a community of like-minded people who share the same interest as you and your content will have better engagement, better rewards and it will be easier to get noticed - especially as a new/small author. This solves many of the problems that Hive faces, and I hope to continue to prove this point over the coming months.



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I think that we need to keep the hive distribution for the moment as there needs to be a wide distribution further across the board. It is still the main draw to get users onto hive and the incubator for great projects such as leo and splinterlands. They have been built on those foundations and gotten a push from hive holders to succeed. It's what unites us all for now. Sites like peakd, where ideas are shared and feedback gained from the users. This is a vital part of the building stages.

I don't think that this will be the case in 5 years time, however but that is a long way away yet. For now you are the first team to break the mould and branch out with a new successful token based on the fact that you could build a community and add a solid business plan to that. It will be a blueprint for others to follow such as sportstalk or travelfeed. Or somebody we haven't seen yet. This is only the start.

It won't change however until we have SMT's and way to create purpose build communities as most people don't have the skill to do what you have just done. There needs to be a plug and play version. A way to set the options on a community site, in built ad revenue and a support team to customize it to a higher standard. Hopefully that day isn't too far away to see 100 solid community sites thriving. That is where we will onboard large numbers of users. A WordPress for crypto websites. Every community tokenised and incentivesed to be active.

As you have shown it is far better for people to group around a common subject rather than fighting over what they want to see. Having a theme and moderation are an important part of a better user experience.

What we need hive to be will be the background center that unites us all. A strong token to trade against. A protocol to operate all of these sites and a recognized name in crypto. We will need a hive payment app so that people will be able to trade their smt's against hive and use that crypto in real life. A hive debit card/payment app like i have on That wouldn't be a bad place to start and give us the fiat option until we have a stand alone one for just hive and hive based tokens. It will be the backing token for everything build going forward.

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Yeah we need an airdrop like fucking uniswap

Why cant @aggroed turn his Dswap into DEFISWAP and give people a cut of those bee fees?

Bee token isnt working right now but if we started AIRDROPPING bee to EVERY person whose ever made a deposit or trade on hive engine we coulr have our own UNI situation

We just need BEE and swap.hive on eos and erc20 on newdex and uniswap and BEE can be an eos and ethereum super star bringing people to hive engine

Bybthe way @avral could add hive engine to then we can have a real DEX on eosio

In my opinion, this is the most effective way to earn rewards. Join a community of like-minded people who share the same interest as you and your content will have better engagement, better rewards and it will be easier to get noticed - especially as a new/small author.

I have been banging this drum for the past two years. Although I think HIVE should still maintain the reward pool to help with distribution, I think it will take on less significance going forward. As people join Hive via the apps, they will not even concern themselves with the HIVE token, at least to start.

If the developers ever bring out SMTs (HMTs) this will be taken to another level totally. We will see where the conversation goes in the next month after this Hard Fork is completed.

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Yeah I believe hive should retain the pool too because without it distribution might not really work well. Great to see you're pulling weight in leo

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Well based on your earnings it seems like your drum banging turned into a song.

I really hope that other tokens take Leos lead. Unfortunately, I very rarely get to use the Leo tag but have invested a bit in the token since early on and love to see what has been done to bring value. I just wish that this was the model of all the rest as it seems to be a winner and brings attention to the whole ecosystem. Good job to all the writers and the team.

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The most important reason why the HIVE rewards must remain is keeping the ownership of Hive Power becoming too centralized. That would undermine the credibility of the entire platform and actually put all of everyone's funds in danger. The tendency towards centralization is the Achilles' Heel of Delegated Proof-of-Stake. Because DPoS chains are cheap to run, a small number of top (consensus) witnesses keep potentially getting richer and more powerful until all power is irrevocably concentrated into their hands. PoW chains do not suffer from that problem because the right to sign a block is bought with a high cost of energy and capital, which forces the blockproducers (miners) to constantly sell their coins.

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It would be good to see new users in these lists joining the ecosystem of leo in a very short time, without mentioning of course that the earnings here are a stimulus for that

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Wow... This is awesome!

Well done, folks!

we're proving the model that tokenized rewards pools OUTSIDE of just using the native HIVE pool can be an effective way to reward authors.

I totally agree with this

I am starting to see the same thing. Since you, and others are seeing what I see I feel we are naturally gravitating towards each other and finding our footing.
I must admit you’re motivating me little by little to start posting videos of myself talking.
I find it hard to communicate everything via only text.

LEO earnings are great and the protocol is not aware of its own price on outside markets(unless I’m wrong about that, isn’t that what STU price was for?). Only thing preventing LEO from getting to $10 will be those selling their massive residual incomes from posting and putting in work on here.

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do it

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I am not on that top 25 list :) But I think with the current price of Leo, a signficant portion of every author's reward would be contributed by the Leo portion if they they post on

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I have no doubt that you will be soon.

Work hard that all your goals will be achieved.

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This is totally true, I have started to publish some of my publications directly in Leo and it has been verified that effectively integrating into a community with corresponding topics is very useful.

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Glad to be in the T20 again, that gap between Hive and Leo has certainly narrowed a lot!

I feel that LEO is generally much more welcoming of bloggers than Hive too!

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also important is that this gives people who do not write general blogs a chance to show their area of expertise, in the case of LEO that is everything finance, and earn from their niche of knowledge

Nice to see myself in the top 25 with all these legends and it looks like I get support from both sides with w 51% split lol I guess it pays to be blogging o. Leo when it was 1-3 cents lol mu only regrets was not buying more at those times

It seems you are killing in both play-yards out there :P Keep up the good work.

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Lol yes I am making friends with the right people it seems, and also since I 100% power up everything I guess people feel its worth upvoting, or my content could be worth a read who knows

Whatever you are doing, you are doing it right 😁 I have doubts about the content though lol. Kidding, the content is great. It is fun to read even your comments. They are that good btw

Congratulations. Seems like your daily posting is noticed by the community.

I hope so, that my consistency has been taken note of and that people enjoy my daily rants lol I always told myself I refuse to miss out on the next 8 dollar run so I've been happily stacking everything I get

Ahh, that 8 dollar run.

It will come again.

I think because of leo a lot of author are having the opportunity to not Only blog on the niche they love but also prove that the concept of the second layer token can be a really big win for hive. This is an amazing stat, honestly it's great to see I've come this far despite Only fully started blogging on Leo 4 months ago. Cheers @leofinance. Hopefully we can see more authors coming in and well the bigger the better

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Great post. It's really interesting to see the data side by side like that. I am in the camp that HIVE needs to get rid of the reward pool, but only when there is something adequate to replace it, like SMTs. At this stage it's probably wise to keep the reward pool as is until SMTs are ready. Hopefully other communities copy your idea of generating revenue and then putting said revenue back into the token. Without that all these tokens are simply vapor ware.

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Join a community of like-minded people who share the same interest as you and your content will have better engagement, better rewards and it will be easier to get noticed - especially as a new/small author.

Unfortunately many communities have a token that has hardly any value or they don't know how to grow it. I spent most of my time in the so called Natural Medicine community and bought quite a lot of Lotus but this investment has never paid off.

Some people - like me ( a filmmaker on a hiatus, writing mindful dino stories ) - share content that doesn't really seem to fit in any kind of community. Blogging just for Hive hardly seems worth the effort though these days and we all want to be part of a group of like minded individuals though.

I mainly moved to Leofinance, lately, as I was looking for ways to grow my passive income and money in general, to learn more about investing, but that doesn't make me a finance blogger.

I'm a creative though and I'll always find a way...

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pump it

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Leo is a shitcoin.

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Simple common sense. People want to get paid. If your system doesn’t reward the users will leave. Just look at Steemit. However, Leo is very rewarding. The proof as they say is in the pudding. :)

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The multiple-stream approach has always made the most sense to me.

I do believe there needs to be a "core" where people can get there and get their feet wet while they discover how the system works and perhaps learn more about which Communities and Interest groups are most in alignment with their interests. From many years of content creation, one of the important things to always keep in the backs of our minds is that not everyone consumes the same category of content as they enjoy creating. For example, you might be an avid consumer of financial information... but your passion as a creator is writing self-development essays, or homesteading. Hence the case for a "general" site with a "general" rewards system.

Bottom line, there: Not everyone in the world is a "specialist."

My personal approach — which I cannot imagine being unique — is that I have my main account, along with a "creative" alt and now this "financial" alt. All of them have their place, and the flavor of what each one does is somewhat unique. To with, the LeoFinance site is probably not the right place to post cute cat pictures...


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That's great interpretation of data, but the Leo Community is only about a finance, a whole Hive community is much more themes, not only finance...

You're actually inadvertantly in support of the Leo model. Your comment implies that 'niches with concentrated rewards' is far superior than just one giant swimming pool where everyone is competing for the same rewards.

That's actually what the article is explaining. That second layer rewards can give every category/niche better recognition. Which is why SMTs must be finished to fix the issues of Hive.

I am glad that Hive has finally a successful second layer token and tribes turning out to be a successful concept as well.

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This is the most effective way to earn rewards. Join a community of like-minded people who share the same interest as you and your content will have better engagement, better rewards and it will be easier to get noticed - especially as a new/small author. This solves many of the problems that Hive faces.

That is the clear and undeniable truth.

Hive needs to finish SMTs. There is just no other road that makes sense. It's an absolute necessity in order to grant the ability to build networks that can migrate and maintain collectives from all over the web.

The onboarding is at least finally realised here as needing to be a simple 'username and password' or phone sms verification. That is what attracts entire groups because it's a no brainer to say "ok I'll try this platform out" or "ok I'll use this app that I'm hearing buzz about."

The way so many Blockchain projects expect users to understand or even have interest in Blockchain is a clear turn off that so many coder nerds stubbornly ignore. It's almost an elitist arrogance that they live by "well if they're too dumb to get it then it's their loss." Yet they then push spam on Twitter thinking they're doing people favours.

LEO now exists as a champion of 'tribes/second layer system' and a solid example to model if SMT projects were in effect. Then if a new "boom project" arises then that could be another model and so on. That would generate healthy competition between projects/teams/communities too. As is currently, people in their respective communities really don't care what's happening outside of their bubble.

Keeping the underlying rewards of Hive could then be morphed into the stable asset of this chain and things like DHF could exist as a 'Central Bank' that projects can both utilize as a loan system and as a way to grow the overall value of Hive. Investors could then come in and either play a "hands on" approach to build projects with SMT or simply park their wealth in the DHF and receive a return from the collective growth of all SMT projects.

Anyway, well done LEO!
Although Hive heads aren't supportive or entering the discussion, I'm sure they're paying attention. The token price movement can't be ignored. That after all, is the 'holy grail' of crypto.

First, congratulations to LEO for it's successful development. Good work creates good rewards, and you're clearly doing good work. I commend you.

I hope this kind of development and multiplication of the good Hive can do is duplicated many times, and touches every person beneficially. Awakening folks to the possibilities of the good things they can achieve by working together rather than simply following the orders of some despot is utterly necessary, and IMHO will soon change the world for the better.

LEO is leading the charge.


Second-layer tokens is a life saver and it is one of the reasons I have stepped up in engagement. It is the future of Hive blockchain. Leofinance has been doing pretty well and I must commend the team for their efforts. I hope one these months, my name would also appear on the list of top earners.

Wow cool

So what if your LEO people earn more in leo than hive? Lol thats a tiny minority

Put LEO on eos already like i told u to do last year and you could be on newdex and leading all eos and hive tokens

And dont give me guff about eos not working for SAND ... its a tiny experimrntal community, while LEO on eos and newdex and defibox would have actially blown the lid off.

We need eos LEO so we can use leo as defi on and

This is for only posting by the way. If you include curation earnings for these authors, I'm sure you'll find something even more interesting.

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Loving the lay out of this post and all the info as well to go with it :)

Thanks for sharing :)

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Loved being on that "high earner" list.

Awesome. Looking forward to seeing more Apps brought to LEO family.

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I'm a believer now. I am accumulating LEO as I see the value.

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I earn a lot more in leo than in HIVE.

And my upvote is worth significantly more.

I think that the Hive reward pool is very critical, at least as a unifying reward pool for all. Yet, we can't rule out the potential of second layer platforms like LEO that could turn out to be more powerful. I am quite sure that with the soaring price of LEO, the figure will be much more different this month.

tan solo espero entender este lenguaje

In resuming the power of community.

Thanks for the informative post!