Re: LEO already deflationary purely from revenue buybacks.
So we had 220K LEO bought back from ads, leo.voter and premium per month... with inflation just 182K per month.
No being deflationary doesn't mean shit in itself, the token still needs a reason for people to buy/hold for price to go up.
Something we have via curation rewards and the higher social status on INLEO that leads to more rewards.
5/🧵
Agreed. "Scarcity" — be it via deflation or otherwise — doesn't amount to squat unless you have something people want to own/stake. An "earning and selling" mindset will still kill you.
Look at literally every single social Hive layer-2 token.
The model just isn't sustainable unless the front-end is monetising the content that they're printing to pay creators for providing.
Fact!
But it's probably an issue across much of Web3Land: Your token is not your PRODUCT. You have to have an idea/product/value-add that you tokenize. The token is merely the fuel for the product.
Not actually deflationary since the tokens are actually on the market. He is considering the market buying as determining the inflation/deflation.
I disagree although the buy demand is a good thing. The tokens are going to be distributed, hence in the circulating supply although many of us will likely stake them anyway.
It is good to see buy demand though. Maybe we will have some growth in terms of the ad revenue. Need to establish a baseline first.
You're right, it all depends whether the tokens being distributed are just dumped again.
But leo.voter is essentially the same right now and we're already seeing price tick up.
As long as its taking more off the market than are being dumped, it will be fine.
Yeah. The key to it all will be to get more money coming in via the page views/ads and them it could outpace even the dumping.
And we know if the price starts moving up, then FOMO sets in and others jump in to buy.
Baseline and grow from here.