With all the dust slowly settling and while we are waiting for the 2nd official launch of WLEO (the little sister??) I thought I would look at the forgotten brothers
LEOM and LEOMM
In my feed @rollandthomas reposted this important post from last year. Back then I got me some of both and even some at the 6 Steem price. But I have never looked any closer at the ROI on those guys.
I own
48.326 LEOMM (x4)
85 LEOM
which adds up to: 193.304 + 85 = 278.304 miners
Those are still available at 2 Hive a piece so that is 556.608 Hive worth of Leo miners
I have been keeping those rewards and have been powering them up mostly.
I did a quick check and those miners have brought an income of 201.517 LEO in the last 3 months.
So if we round that down to 200 and go up to the year I am getting an income of 800 LEO per year on 556.608 HIVE value of tokens.
So the big question here is:
What is a Leo token worth?
thanks to @gerber for providing the chart
3 months ago the LEO price was fractions of what it was now. It was roughly 0.2 hive so let's take that as a ballpark price 3 months ago for good measure.
800 LEO x 0.15 = 120 HIVE ---> that makes 21% ROI which is really cool
800 LEO x 0.7 = 560 HIVE ---> that makes 100.6 % ROI which is freaking amazing
As far as I know, the metrics for mining have not changed and will not change in the future but there is no mention of them in the LEO FAQ on leopedia (@khaleelkazi : maybe worth an update as it might boost those sales)
Now this poses a dilemma for me:
- Take 100% in Staking (good for me)
- Take 14% in curation (good for community, less for me)
- Take ??% in Liquidity providing (good for community, unknown for me)
Conclusion for me:
I am by nature a bit lazy what this kind of stuff is concerned and like to automate things and getting that regular LEO in my wallet has been swell.
I am defo going to do the LP as I just want to learn a bit more about the whole inner working of DEFI while supporting the LEO and HIVE environment. But I am also going to buy a bunch more miners as I like the daily trickle.
so that is exactly what I just did... Since my original investment already paid off
Posted Using LeoFinance
Anyone thinking of buying LEO miners should be aware that the number of LEOM and LEOMM staked has significantly increased in the last few weeks so the rewards will be proportionally lower (as compared to the example above).
Posted Using LeoFinance Beta
indeed but for me I keep the ones I have and add a few more. I am already breakeven.
For new entries you are right of course
But even if the rewards are lower we still need a lot more of staking for it to go to 11% which is my ROI on hive
Due to the limited amount and the price of Leo going up it might not be such an issue that most miners are now staked.
These are great results and this passive income of the miners is something that gained trust lately. The LEO ecosystem is booming so having different angles at it is the best way to go with.
I have bought my first 75 LEOM last week and shared the love with the community, ROI will be provided from both Mining and Selling when the supply will deplete and will be open waters.
Posted Using LeoFinance Beta
yea, you just have to treat it as a long term thing
Thanks for the example - the economics of the miners has always been a fascination of mine.
I've been asked a few times why I don't mention the miners (in the FAQ and elsewhere). I answered a bit in the last roundtable podcast about it but it's mainly because I think there's a big misconception about the viability of mining. For small stakeholders, they're much better off buying, staking and curating with LEO POWER as opposed to buying a few mining tokens (i.e. some users buy 5 LEOM's and then ask why they haven't gotten rewards after 7-14+ days of staking).
For larger stakeholders seeking a more "fixed" passive ROI, the miners can be great. I wish we could flip the mining rewards to be non-random (as they are randomized lottery tickets now which favors large stake). It's an imperfect system although it is still one that works for many of the stakeholders who do their homework about the ROI and understand the nuances of stake sizing.
Posted Using LeoFinance Beta
I get your point on the sizing of holdings and the lottery system but they are an integral part of the leo ecosystem and as such deserve an explanation in the FAQ. If you there highlight the small stakeholder issue it can make a difference but in the end it should be the choice of the person that buys it. Giving them the facts allows them to do as they please.