Difference between income and off platfrom investments for LBI

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Authored by @silverstackeruk

Hello LBIer's. Yesterday we released a post showing the investments that LBI had in CUB finance. If you missed out, you can click here to see that. I have not got round to answering all the comments, only around half as there were about 30 of them in total but 1 thing I seen asked 2-3 times was about CUB earnings and if they would be included in the weekly dividend or not. If you are in a hurry, the short answer is no. If you are not in a hurry, read on...

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Income Investments
Before we start so that you can understand better how I think. LBI earnings are counted from any profits/rewards on the HIVE blockchain. That essentially means anything from Leofinance, hive.blog, hive-engine tokens and in the future gaming are counted toward weekly earnings.

Off platform
Off platform investments are off-platform, they are left to compound and increase the LBI token value. They also offer us liquidity assets as they are not powered up are tied to low liquidity on hive-engine. This can bring advantages when capital if required quickly are we need to bail on an investment asap. Remember that LBI is not a dividend token and it's value comes from its holdings, not its earnings.

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Future off-platform investments for LBI

CUB finance
Already a thing as we know. We hold a BSC wallet worth over $11,000 and growing. CUB finance runs on the Binance smart chain, it is not an income investment. We will not sell CUB to pay dividends but we can sell CUB to buy LEO to power up, are other off-platform investments. We will continue to harvest and compound on CUB finance until we have a reason not to.

Project blank
From what we know, we can guess this will be an off-platform investment for us. It's going to have different branding, it'll be promoted to a different market and the rest is a guessing game. I have a few pre-thought ideas about how we can tackle this based on lose assumptions but I dont want to say anything until we have all the details. I find sharing idea's confuse's people sometimes so better to hold back and waiting. After launch adn we know what is what, we'll build a small team to project manage this for us.

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Let's look at a coming soon new income investment.

LEO sidechain
Not sure what the proper name of this will be so we'll call it the LEO sidechain. If you are not aware, the LeoFinance team on working on a sidechain. If your thinking, what's a sidechain? hive-engine is a sidechain, all our exchange tokens, tribes and projects run on a sidechain. A sidechain is a separate blockchain that is attached to its parent blockchain using a 2-way peg. This is why hive-engine uses HIVEp and not HIVE.

To get to the point, LEO's sidechain will be decentralized and requiring people to run LEO nodes. From what I have seen in the past, we will need to stake LEO GOV tokens (not released yet) to run a node. Those will be airdropped and im sure LBI will receive enough to run more than 1 node. Assuming node rewards are paid out in LEO, this will be an investment for us.

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Not a long post today but thought it would be a good idea to put this out as I see a few questions yesterday about it so im sure many more are wondering. I should even get this post added into the LBI FAQ post that I've not updated since uploading it, shame on me. At least now i can say I've been busy harvesting CUB for us, haha.

Thank you for checking out today's post from LBI, tomorrow is earnings and holdings report day and the first report where we have an off-platform investment so be sure to check that out to be sure.

Have a great Friday evening folks

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27 comments
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Off-chain investments need a little longer to mature. CUB will probably be growing in the next months to a solid value, so it might be better to let it compound to accelerate the growth.

A small tip or request, can you please post the leofinance link and not the peakd link in the posts? :)

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I like the diversification as it means we would not be in trouble if one or two run into trouble down the line. I don't mind because the appreciation in price is still a plus to the value of our investment.

The side chain seems interesting and I don't think I will run a node so I guess I will indirectly take part through LBI.

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Definitely add it to the FAQ.

This answered everything on my mind re LBI's CUB stake.

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Ok , I do not need it know but there should be some kind of official buy back LBI program. Price of LBI in Hive-engine really sucks if you want to sell your LBI for liquidity.

Selling little cub and increased Leo payout is also a very welcome move.

One of my reason of buying LBI is that I am not venturing out of Hive as such and with LBI, I am at least covered on Leo front . Whatever Leo will do outside oh Hive, LBI team will jump in and I get those benefits too through LBI.

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Great. I'll say this way lbi value solidifies in the long term. It also helps strengthen our position on different chain.

As long as the price of LBi is good our investment stays solid

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Remember that LBI is not a dividend token

Now I'm confused :)

Also is CUB collateral of a sort then? how does it raise the value of the token if it won't be part of the weekly dividends ?

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The value of LBI is not coming from the dividends. I mean atm there are no dividends xD
The value is created by the investments, as is the case with SPI.

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There will be dividends at some point that's the whole idea isn't it ?

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LBI is not a completely dividend based system, compare it more with SPI but based on LEO and with a bit more dividends. But the value of LBI is not based on the dividends, they are more of an incentive to buy

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Dividends will come from earnings as presently noted in the earnings report. There is a section that spells out what the dividend pool would be if they were being paid.

All dividends, when they go into effect, are paid out in LEO. This is not like some of the other income tokens which pay out in a variety of tokens.

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For a detailed answer about how the off chain investments will help the value read the weekly posts @silverstackeruk is posting. (This week is the first one with an off chain investment). And if I'm wrong with my answer I'm sure @silverstackeruk or @taskmaster4450le will correct me.

When the divs start will be voted for in a few weeks. Keep an eye open for that!

The off chain investments are done by using the LEO's we earn. And since the community voted to grow the token first before paying out divs there are no dividends paid yet. In the future LBI will use 50% from the earned LEO's for powering up the account and investments, and thus growing LBI's value ... the other 50% from the earned LEO's are for dividends. And I'm talking about the LEO we earn with our posts and curation.

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Thank you for the answer, still a bit fuzzy on some points but I'll read this week's post first and then I'll find someone to bug with my thick skulled questions :P

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I'm sure you'll find more than one person to answer your questions. We always have something like an @lbi-token discord.

https://discord.gg/QDG5WRDt

(if you're not there yet)

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Thanks for the discord link, I'll use if I'll still have questions :) Btw I like your answers the most, maybe because you have a nice way of answering bone-heads like myself :P

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Thank you for your compliment. Maybe it's just because I'm a nice girl, and also highly sensitive ... and can also understand very well what it feels like to step into the crypto world where you get many new terms thrown around your ears. I have a partner who is not into crypto at all, was not interested until recently ... but now that he is starting to get interested, he also likes to receive a simplified explanation.

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I still remember the "Get Rich Slowly" phrase, I read in the intro post of @lbi-token. Thanks for clearing it up with everyone and setting the right expectations.

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I love reading on new income investment opportunities, very informative and very helpful.

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That's a good point. Let the off-plattform off for getting in other investments, and the hive chain earning for dividend.

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So many things happening in the LEO Finance space and LBI with its considerable fund has the opportunity to be an early serious investors in all of them and tap into some great gains. I believe that we will have a jump in the LBI price based on all these factors.

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Off platform investments are off-platform, they are left to compound and increase the LBI token value. They also offer us liquidity assets as they are not powered up are tied to low liquidity on hive-engine. This can bring advantages when capital if required quickly are we need to bail on an investment asap. Remember that LBI is not a dividend token and it's value comes from its holdings, not its earnings.

@lbi-token i believe that the off platform is a wonderful idea and it should be more encouraged because it will lead to a powerful increase in the value of the LBI token....

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