My Leo Powerup and my thoughts on LeoAds.
Welcome to the 11th edition of the Leo Powerup dy of this year and this time I am happy that I am able to participate in it. Apart from being a community event, there are other benefits associated with this event that are not limited to Leo Power delegation but can also land you for a Premium subscription, subject to condition. More details about this event can be officially read here
I was wondering this time that if I will be able to powerup 150 Leo or not and luckily, I am able to power up 150 LEO.
My thoughts on LeoAds.
LeoAds revenue is getting used to buying Leo from the market and it provided a nice price jump on the Leo tokens as it can be seen in below screenshot.
Since LeoAds buy is supposed to be performed every week and these are very initial weeks, it is expected that with time LeoAds can positively boost the price of Leo.
Though this model looks nice, somehow I feel rewarding more Leo for Leo can become counterintuitive in the long run. Let's say Platform buys "X" amount of Leo from Ad revenue and distributes it, and to realize my Ad revenue profits, I sell my Leo. The more the price of Leo goes up, the more the probability of selling LEO increases and might balance both buy and sell pressure and effectively have no positive effect on Leo's price going forward.
In this case, I would like to suggest some of the other models to use LeoAds revenue that I think will be more beneficial in long run.
Hive based Model.
In this model, LeoAds can buy Hive from the Ad revenue and distribute 50% of Hive purchased to the stakeholders and powerup 50% of Hive, and follow the curation trail of Leo.voter. In this model content creators get more value in the vote, LeoAds will grow internally also with Hive curation rewards, and Hive rewards will motivate the community to buy Leo. Buying Hive will have a positive impact on the price of Hive and a strong Hive price will generate more interest in Hive and it will benefit all communities in Hive including Leo.
HBD based Model.
In this model, LeoAds can buy HBD from the Ad revenue and distribute 50% of the HBD purchased to the stakeholders and 50% of the HBD in savings account. Not only it will generate a 20% APR for the platform but also a reserve of the stable coin to withstand crypto winter. HBD rewards will be the motivating factor for the community to buy Leo.
Service-based Model.
Team need to be intuitive here and right now I have no idea what service the team can offer but I have a design for this model.
Let's suppose inleo platform earned $1000 from LeoAds. LeoAds issues 1000 tokens priced at $1 and distributes them to stakeholders. LeoAds will put the support of the token at 80 cents.
Now users can redeem services using this token and they will be honored the price of $1 per token. Those who do not want that service can sell it for at least at 80 cents.
Since offered services can be purchased using these tokens only and based on the value of the service, these tokens might get sold in the open market for more than $1.
In this case, I see the following advantage.
- Stakeholders get a premium token which can be used to buy a service.
- Service can be purchased using that premium token only (or the premium token gets a discount) which will create the demand of the premium token.
- Leo team effectively gets the Ad revenue back for platform development by giving value-added services.
I again see a win-win situation for the platform, team, and stakeholders in this model as stakeholders like to get more premium tokens and stake more Leo.
So friends, what do you think about these models, and what are your thoughts on how we should use LeoAds revenue?
Posted Using InLeo Alpha
