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RE: LeoThread 2024-02-07 01:07

in LeoFinancelast year

are you sure?

Nothing about the number 20% is unsustainable in and of itself

It’s about the value you’re paying for the value you’re getting

Paying 20% and getting 30% in value back is highly sustainable

The key is making sure we capture more value from paying 20% than we are giving

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At some point it breaks unless you're able to continue inflating the currency then that's another story but there's only so many dollars and changes in markets where eventually 20% becomes unsustainable. It's why we have APRs because they are adjustable to market conditions.

again your mind is stuck on 20%

If you pay me 20% but I give you 25% back, how could it be unsustainable?

The question isn’t about the APR you pay, but the value you can capture

If you can capture more value than you pay, then sustainability is far from an issue

  • 10% curation rewards
  • premium subs
  • increase in authors creating evergreen blog posts
  • increase in beneficiary rewards

Can these 4 things generate more than 20% in captured value for the LEO token? We’ll find out

That's true. I guess I'm more stuck in the Fiat world where I know saying 20% payout of something was a classic red flag lol I totally get what you're saying but at any moment any one or more than one of those 4 value entry points can change. For example curation falls to 7%, premium subs slip or a bad month of payouts from ads. You can't or at least shouldn't guarantee the APR. (at least that's what I've heard from lawyers but I'm not lawyer)