Introduction
Things you need to understand about the Inleo-LeoDex-Leo-LSTR-Surge Flywheel that turns the wheel, makes the cash, stakes the Leo, creates scarcity, generates income, etc.....
The things we learned from the past, whhich make this project better.
- Veteran Investor: I am a long-time investor in the LeoFinance ecosystem, having participated in all major projects created by its leader, Khal, across multiple blockchains.
- Hands-On Education: My journey provided a deep education in decentralized finance (DeFi), including concepts like yield farming, liquidity provision, and NFTs.
- Evolution of Projects: I observed that each new project was an iterative improvement, designed to solve the shortcomings of the previous ones.
- The Flawed DeFi Model: Most early DeFi projects followed a predictable and flawed lifecycle based on inflationary tokenomics.
- Lifecycle of Failure: This cycle involved initial hype, a rapid price pump, massive token printing (inflation), and early investors selling to latecomers.
- "Bag Holders": Late investors were left holding tokens that lost up to 99% of their value, becoming the "exit liquidity" for early investors.
- Lack of Real Value: These failed projects lacked intrinsic utility or a real business model; their rewards were funded by printing more tokens.
- DeFi's False Promise: The "DeFi Summer" revolution, which promised wealth for all, ultimately transferred wealth from the many to the few.
The New, Sustainable Model
- Learning from Survivors: A few DeFi projects survived and thrived by creating real earnings and utility, which the new LeoFinance model now emulates.
- The "Secret Sauce": The new model introduces three key solutions: deflationary tokenomics, protocol-owned assets, and earnings from a real business instead of token printing.
- Real Revenue Source: The entire system is fueled by a single source of external income: trading fees from the LEOdex exchange, collected in the stablecoin USDC.
- Protocol Owned Leo (P-LEO): The core of the model is a protocol-owned treasury of LEO tokens that is permanently staked and never sold.
- The "Demand Sink": P-LEO uses its share of USDC fees to automatically buy LEO from the open market every day, creating constant, predictable buying pressure.
- Reducing Supply: Every token purchased by P-LEO is effectively removed from the circulating supply forever, creating a gradual "supply shock."
- The Strategic Amplifier (LSTR): A separate entity, LEO Strategy (LSTR), acts as a "strategic whale," aggressively buying even more LEO and amplifying the buying pressure initiated by P-LEO.
The Flywheel Effect and Conclusion
- A Virtuous Cycle: This creates a self-reinforcing flywheel: trading fees fund LEO buybacks, which increases the token price, which in turn attracts more users and volume to LEOdex, generating more fees.
- From Inflation to Deflation: The system uses external revenue to create deflationary pressure (reducing supply) rather than paying rewards with inflationary emissions (increasing supply).
- Structural Demand: The demand for the LEO token becomes structurally embedded in the protocol's daily operations, rather than being based purely on market speculation.
- Potential for Generational Wealth: The author is highly optimistic that this sustainable model could create ever-increasing value and become a long-term, generational wealth-building machine.
- Personal Responsibility is Key: Despite this optimism, the author strongly advises readers to do their own research, understand the project fully, and take complete responsibility for their own investment decisions.
The End
@Shortsegments
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This post was written by Shortsegments, who has been writing about cryptocurrency, the blockchain, digital ledgers, bitcoin, ethereum, and decentralized finance for seven years. You will find his articles here on his blog Link to his blog.
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The Leo Flywheel sounds like a smart idea. I like how it focuses on real income and deflationary tokenomics instead of hype. Long-term planning like this feels more sustainable. Of course, doing your own research is always important.
Exactly, new focus, different outcome from past failures.
It's exactly like that. A lot of hard work went into your post and the knowledge of those who read it increased a lot. And it's a fact that a lot of work is being done on the project, that's why the price increases and people's interest increases, so investors definitely come.
Thank you
Most welcome.
#hive #posh
Thank you
Welcome
Thank you
Wc
??
In years to come, Leo finance will set the template for the coming project in the Blockchain world
I hope so
Your point about the exchange fees in USDC funding daily buybacks clicked for me. As an accountant, external revennue driving demand beats emissions every time, and the treasury staking LEO and never selling gives clear supply discipline. If that flywheel keeps spinning, small accumulators like me just need patience, not hero trades :) I did chuckle at the TLDR bit, humans really do love abbreviations more than fi;nance sometimes, but the mdoel here feels grounded.
Thank you
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Awesome job @shortsegments! Keep pushing yourself and you'll reach your Hive goals before you know it.
Regarding that point, I guess even when the token used to be inflationary. It still would make sense to have it if there is a use for it. The move to deflationary is good. But, the important factor is token usage.
I agree that being deflationsry is ebough for bitcoin, but all others coming aafter it will need utility.
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