Want a simple tip to support your favourite tribe? DON'T SELL!

in steemleo •  7 months ago  (edited)

It's been a while since we're enjoying a endless party of tribe tokens at Steem-Engine.

First it was Palnet. Thereafter many tribes started popping around like mushrooms in a rainy afternoon of october.

All of this tribes are suffering from a very low liquidity problem. If you try to sell ASAP your rewards you're 'dumping' the price as the spreads are (still) ridiculously big.

Sort of growing pains I guess. First of all the tribes need to consolidate their base of users and holders. And once both factors stabilize (something that we're doing non-stop), the prices (& values) will be able to grow. We also need STEEM to hold current levels, If our primary token keeps falling vs fiat and BTC probably all the other tokens will be doing the same.

Going back into the matter of the post;

Personally decided to focus only in a few of them. Being my major LEO as the investment topic is what brought me there and it's what keeps me more interested.


Being the proud owner of +6000 LEO tokens (@curatorlink.leo is mine) and 50 LEOMM which are constantly giving me curation and mining returns.

I needed to figure out a way to 'cash out' in Steem without affecting negatively the price of the token.

I know that many are aware of this, but a solution is already in place.

Yep, I'm talking about Bid-Based Voting Bots for Steem Engine tokens.

Not going to talk today about the bid bot abuse as it's a discussion for another day (and we're in #newsteem anyway, so it shouldn't be the big problem that we had with #oldsteem).

Imagine the following scenario:

I want to sell 100 LEO tokens (or other arbitrary amount). I have 2 options:

-The first one consists about dumping my LEO tokens at the SE market (dumping instantly the price and/or creating selling pressure in the form of limit orders).

-Once my order gets filled for I'm also suffering a 1% withdrawal fee (not counting spreads).

-Someone gets my LEO, which will be traded again or staked later (don't know who's getting the tokens).


-I have a second option, which initially requires to wait for the @leo.voter bot to be available and send him ~40 LEO to get upvotes worth ~1,2 STU in one of my latest posts.

-I'm going to assume that I'm getting 0% ROI from the bid bot voting (worst case scenario).

-I'm getting some promotion & consequent improved visibility.

-I'm not creating any sell pressure as my LEO tokens are getting distributed between bid bot delegators (which have numbers to be die-hard supporters of the tribe, otherwise they wouldn't be delegating their precious Steem Power).

Not meaning that LEO won't be dumped later, but clearly have more chances to remain staked/kept rather than sold.

-The bot is BURNING their part of LEO tokens. At ~25k SP from a total pie of ~87k (own SP + delegated), that means that ~1/4 of LEO received are being burnt into hell.


As a 'counterside', we could say that this form of 'withdrawal' requires a bit more of patience and frequent and quality posting (this is #newsteem after all uh?). Not a big deal since not many users generate dozens/hundreds of tokens daily as rewards. Most users would be collecting tokens for a few days/weeks and sending them in a big chunk to the respective bot.

This method is applicable to most of the major tribes btw:


Remember Tribe owners:

Don't stop creating quality sinks for your tribes.

If your tribe have some sinks in place and your users grasp a bit of the potential value that you have to offer, the number of hodlers probably keep rising with enough time; driving scarcity for your token and ultimately higher valuations.

Hats off to @khaleelkazi and all the SteemLEO community.
It's a pleasure to being part of all this.

Steem on!

You can follow me on Twitter


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Holy shit you are really saturating the @leo.voter account!!! give me some chance :-)
Good post mate!

Hehe :P

I'm empty right now, going back to refill some LEO reserves.

Thanks for the support!