There are many schools of thoughts on second layer token. I commend and appreciate your positivity. But let me give you the flip side. After Steem-Engine was launched very quickly there were 100s of tokens. How many of them are alive today?
That said you are talking about a token that does have some following. Arguably the most successful second layer token is probably DEC. It does have a use case, outside of staking and voting. It’s an in game currency. But still notice how it is struggling to stay up.
Question conflict of interest when people talk about second layer token.
FYI. I don’t have almost any second layer token. I don’t know that’s a good thing or a bad thing... just a fact.
That's right. Not all the tribes survived. Maintaining the supply and demand balance is very important for any tokens. Pooling resources from other means and using that to purchase tokens from the market and burn them is something that LeoFinance has been doing regularly. That is one of the reasons why the price of Leo is pretty stable.
These tokens will mostly help out people who have Finance as their only niche and let them contribute regularly on that and get rewards. I know a few people who don't even care about their Hive rewards as they are satisfied with their rewards from the tribe tokens.
Posted Using LeoFinance
I need to learn more about the statistics of this. But yes, this is a talked about feature and I've seen a lot of people praise this on different servers, including Neoxian city.
Yes, I also strongly believe in this. There is no point in creating more use cases for the Tribe tokens alone. If we want the value of tribe tokens to increase, we have to find a way to pool in Hive from somewhere and make use of that Hive to purchase tokens from the market. Also, the tokens should be purchased instantly to push the price ahead. Just placing a buy order at some fixed price won't work either. Every day the supply alone keeps increasing and if there is no sink, then the value will drop eventually. The Crypto world evolves with the concept of Faucet and Sink. Both should be in balance for the price of a token to be maintained.
I guess this is what Gerber is also doing to keep the price of SIM tokens stable at 0.005. These are my personal thoughts.
Yes, while I do agree buying instantly will drive the price forward, I also think huge buy orders at a specific price has its uses. It could potentially act as a support when the price is falling, if the buy order is large enough.
Yes I agree to that as well. It acts like a buy wall to not make the price fall so much.
Absolutely! This is why I hadn't invested in any Tribe token for quite a long time. Until recently I got into DEC as I started playing splinterlands!
I don't really know enough about LEO yet to make a comment on where it is headed, but as you said, they have a good following! And it's just like earning HIVE isn't it! Just adding an extra tag, or using their front-end! So I'm still playing it safe :D