wLEO Helps In Many Ways Including Distribution
We saw the successful launch of wLEO 2.0. This was something that many were awaiting since the hack occurred about a month ago.
One of the most valued benefits of the creation of wLEO is the liquidity it provides to the token. With this, we also can see price appreciation since more people are exposed to the platform.
Even though the re-release of the token is less than 12 hours old, we are seeing arbitrage playing out. This is where a price run on either uniswap or Leodex causes a price adjustment on the other. It ends up pulling the price higher.
Here is the chart from Leodex.io. We see quite a run, putting us close to where we hit before the hack.
Token distribution is something that is vital to the long term success of a project like this. Too many crypto economies are too top heavy. This means the tokens are in the hands of a few whales.
While this is expected in a new ecosystem, over time the goal is to get them to spread out. One of the advantages to Leofinace is the reward pool offers a way for people to accumulate LEO through their efforts.
The reintroduction of wLEO aids in this endeavor. Here is the latest tokeneconomics chart from Leofinance.io.
At present, there is just over 69% of the tokens staked. Just a few days ago, this was over 80%. Only staked tokens have an impact upon the reward pool. Thus, the reduction is providing added benefit to those who kept their tokens staked.
Since much of the LEO that ended up in the liquidity pool was from larger accounts, they reduced their influence over the reward pool. This will only further enhance the distribution as time passes.
There is another piece to this puzzle. As wLEO gets more popular, there will be newer entrants into it. Each Liquidity Pool provided put up not only LEO but ETH. LPs are a delicate balance between two tokens.
As newer buyers enter the market, they come with ETH and purchase wLEO. This moves the swaps the wLEO from the LP providers for ETH. Hence, one will end up with less wLEO yet more ETH.
For those who are simply trading the token, this does not mean a great deal. However, if some of those people do ultimately end up joining Leofinance, they could utilize their purchase of wLEO as an on-ramp.
Either way, LEO (wLEO) will be in the hands of more people.
If we picture this same idea replicated over a number of different blockchains, like EOS, then we can see how the distribution of the token can be greatly enhanced.
It also will likely provide great value to the token since there will be so many different pools to fund.
Whereas other tokens are suffering from too many, LEO is rapidly moving towards a liquidity trap.
It is a much better position to be in.
If you found this article informative, please give an upvote and rehive.
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That will make leo more popular. Popularity if coin is very important because, the value of coin sometimes work in accordance with popularity
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wLEO 2.0 has definitely seen people seeing more faith in it once more and knowing their funds are safe. I saw the price had risen for LEO and now I have an idea why, plus due to it being a solid project.
I agree that we need more than just a small amount of whales holding LEO and spreading it around so we can see more of the active users both posting and commenting, growing and increasing their vote power to help better distribute LEO around the community and seeing the token powering through to even higher prices.
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LEO is spreading quickly. There are many who are setting goals for LEO accumulation and reaching them.
The voting power of the larger accounts is diminishing showing the smaller accounts have a bigger stake, collectively. If they are upvoting each day, that means they will be receiving more and more of the daily reward pool.
That is how, over time, token distribution flattens out.
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I love the fact that wLeo just casually bounced back even stronger just a few weeks later after the hack.
That proves the amount of dedication, support and believe in the platform.
Also,
Niceee.
It is hard to argue that the Leo community is not resilient. This is going to pay off greatly down the road. Part of having a resilient economy requires having people who are that way. If not, things will eventually collapse.
Leo might be small but they are strong. Each week, it looks like we are growing in number. The foundation that is in place will only make us stronger in the future.
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Agreed, and the nice part about all that is that I believe we are still at the beginning. Maybe in a few years a few cents for 1 LEO will be an absurd idea.
I would say that idea is going to be in place by March.
It will not take a few years to hit $1. Things are moving too quickly.
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Well I do not use uniswap for the hight cost but we are here in the distance, watching the market and learning about this liquidy procedures, and get the beneficial of prices of the token Leo for this amazing development.
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Ease of money earning makes people more attractive.
When we have earned LEO in LeoFinance,
If we can wrap or swap wLEO and then,
when we can trade wLEO with ETH ,
We can more use FIAT currencies.
I believe that will make LeoFinance community more grow.
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Or one could stake the LEO earned, curate to make more rewards, and watch the price in ETH or fiat grow.
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This is brilliant analysis of the tokeconomics of wLeo and how the relaunch will influence the reward system, holding of Leo as a staked token and of course why it's important that we see a spread of the token to other smaller account.
So far you've been doing a tremendous job at this and well I guess it's all about the long-term endgame. Cheers for this exciting write
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There are many facets to token economics and it is vital that we keep stressing all of them. wLEO is just one piece of the puzzle. It is crucial we do not forget about the foundation, which is still the activity through the front end.
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Big achievement of the This Month Hope all will be fine
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It sure does.
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You noticed that?
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Yep...
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This attracts more users to this great platform, growing day by day.
The value of the currency will go up, this is just the beginning.
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The value of the currency will, ultimately, be a result of the network effect that is kicked off.
This allows more exposure to people on Ethereum, who might end up coming over by signing up with metamask.
Next up is Twitter and signing on with an account from there.
Making it easier for people to use Leofinance is what will add value. As for the price of the token, that will have to follow suit at some point (if it doesnt precede it).
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Thank you, every day I learn more on this platform through the content and comments.
Comments are very vital in the content, because knowledge is shared, we answer questions that we did not understand in the content. It is the first time in two years that I have been on steem or hive, that I make so many comments.
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Well I can promise you that you will see the fruits of those comments when you get your payouts after 7 days.
A lot are upvoting comments to help spread the LEO token out.
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In this way, people are encouraged to make comments, which despite not being able to make a post, can dedicate hours to comment and cure.
It is one of the things that I liked in Leo. That your comments are also valued.
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We are intent on creating engagement on Leofinance.
There are times when some cannot make a post, or perhaps lack the knowledge to do it, yet they can always add some comments.
A lot are not writers or content curators but a comment is something simple. Just put up whatever strikes you.
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i like the idea of the leo token being on different blockchains. Currently, leofinance community is made up of just hivians. A future where we have different tribes on leo finance making it a super community. You have people who are pro hive, bitcoin, eth, eos, etc all in one space, sharing ideas. plus the attention of speculators. It is a future i envision. One reason i am super bullish. If we can pull this off, some of us may retire sooner than we think
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It is vital that we pull in more people to leofinance (and Hive in general). There are a lot of people who are obviously involved in crypto on Ethereum.
The next step is for Leofinance to attract some of them here and get them involved.
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The first 24 hours have been a real success and it was clear that it would be so. Now the LEO team is better prepared to avoid adversity. As a wLEO phoenix you will be more successful from now on.
That more people can be attracted from the ETH platform to Hive, it is very important to see that this wLEO bridge is becoming more and more firm and that they come as masses.
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