Long & Short Terms in Delegation Tiers

Hive Power can be depicted as the blood in the vessel. It is the major source, the fuel, of transactions, existance of blogging and DeFi experience. Though Hive Power can be received as a post and comment reward, without an urge to stake and use it, the power would not mean anything for the holders.

Compared to casual Proof of Stake (PoS) mechanism, the delegated PoS consensus algorithm of Hive makes it possible to utilize your power in the transactions actively. For example, your rewards from the posts and comments are calculated based on the power that you have and wanted to use (the percentage). Besides, your Hive Power generates Resource Credits that make free transactions possible on Hive.

Along with the technical side of Hive blockchain, Hive Power means a lot for the investors, too. The staking APR + Curation rewards combined can make it a pretty juicy source of passive income for the investors of Hive. In the case that we had experienced, every single vote of yours might be above $5 - $10 in the bull market if you have enough Hive Power! To generate revenue from the power of Hive Power, InLEO team uses leo.voter account that gathers delegations and distributes LEO tokens daily.

Tiers for Lions

As mentioned in the recent AMA session of InLEO, the delegation tier system is launched. Lions can easily visit the second User Interface, InLEO Labs, to pick their tier for delegation rewards.

The base APR of ~13%, paid as liquid LEO daily to your account
20% APR, paid as staked LEO daily to your account
22% APR, paid as staked LEO daily to your account

The base tier that distributes liquid LEO token with 13% has been the only choice that we had. The best part of liquid LEO distribution is that you can gather a lot of LEO tokens for LPUD on the 15th of every month.

For those who care short term positions and liquidity for LPUDs, base can be one of the most efficient ways to pile up tokens for LPUD. However, it also has a huge difference with the tier 3 that you can get 9% more APR for your delegation. As I mentioned, the base tier has a huge disadvantage in the mid and long term. That tier might be most effective around the top level of bull market.

IF you do not want to miss daily liquid LEOs, you may create another account that you can use for teir 1 reward. This strategy may decrease your long term unrealized losses up to 4.5% if you choose to distribute your funds 50 - 50 for two accounts.

The second tier, which I call Pre-Premium Teir yields 10% less revenue yearly. If we consider the compounding interest on the staked coins, as every coin staked daily also generates passive earnings, the rate might be even more. Personally, I wouldn't choose that " in - between " tier that has clear disadvantages due to the lack of Premium account.

The last and most bullish tier, Hodl Mode is the APE mode that will generate the best yield in every term. The compounding interest will also boost its long term effects until the top of the bull market. This system creates a win - win case for both delegators and InLEO team. For the team, there will be more flexibility to make use of the long term staked LEO tokens and Hive power. The revenue from delegations can be used to build InLEO and cross - chain products better.

Actually, I believe in the vision of the team and pile up LEO tokens for the long term. Every time I see the updates on the project, I grow the allocation of LEO in my portfolio. IF you are pleased with the work of InLEO team for both Hive ecosystem and project itself, then 22% and long term investment might be your type!

What do you think about the benefits of the tiers?

Share your thoughts below 👇

Hive On ✌️

Posted Using InLeo Alpha