How should LBI allocate it's hive-token content rewards?

almost 3 years ago

Hello, LBIer's. This week we will give "Help a CUB" a break as it's still a work in progress and we wanna make sure it's done right this time around. Switching over from a signal vote plan to 8-week "contest" for new CUB's is taking more planning than I first thought. As we're planning for CUBs to have "sponsors" who will track the CUB's progress, I need to think of a way to make that process simple as well so a lot of stuff to think of and pre-prepare. Fun times...

This week we focus on LBI and what we should do with our hive-engine wallet. To date, we have not invested in any hive-engine token the only earning's have come from content. I convert everything we get into HIVEp and we've collected up almost 800 HIVE so far. This is not a large sum but right now, it's dead money and it would be good to have a rough plan on how to allocate these funds every few months. I had planned to transfer it to the @lbi-token account and power it up to delegate to @leo.voter but the price of LEO is very cheap when priced in HIVE at the minute so maybe converting it to LEO and staking that could be a better long term option. Of course, it could be used to invest in some HE token that provides an income are even converted to off-platform. I leaning toward converting to LEO and staking up. Could LEO get cheaper if the price of HIVE increase's faster than the price of LEO, 100% but we can't fail by having more of our base asset.

For the record, I sell every HE token we receive be it from content, airdrops, giveaways, whatever. With the expectation of a few, everything falls in value because there is no value and selling them when you get them is the most profitable thing to do long term. We're not here to FOMO and collect bags of crap. Whatever is hot crap today will be cold crap tomorrow plus there's no liquidity on HE for crap tokens.

With that said, I do like UTOPIS and we could buy 200-250 of those. UTOPIS is a token that's use's monies raised from issuing tokens to buy equipment and pay bills to mine ETH. Each week, the ETH is converted to HIVE and issued to UTOPIS token holders. The AYP has been a solid 60%+ from release around 9-12 weeks ago and it's doing exactly what it says on the tin.

It could be converted to off-platform very easily and dumped into some sort of stable token farming. 800 HIVE is worth around $350 and it could be a tester for a big investment in the future. We will soon need to consider a new investment to funnel CUB profits into and a stable token LP would be an ideal way to earn a low-risk return while also having a hedge investment against LEO. Yesterday's post goes into much more detail on stable token investing and the doors that defi farms/exchanges can open for us.

As I see it, those are the best 4 options we have. From experience, liquidity on HE is a problem and owning more than $1000 of most tokens will take time to sell are crash the price. Im personally a liquidity whore and apart from powering up LEO and HIVE, I'd prefer instant access to funds. Having $10k worth of DEC is cool but could you sell it for $10k and how long would it take. I know that if I have $10k worth of HIVE, BTC, ETH, BNB, etc I can liquidate that in 2-3 transactions in 5-20 minutes. Paper assets/profits are great and make it look like you have more than you can actually access but I'd rather have liquidity because if you can't access your funds when you need to, are they good investments? We all know that timing and having access to capital is vital to growth. As an example, 55% of SPI could be liquidated within 2 hours, another 15-20% within a week and 13 weeks for the rest. I went off point a little,

I would like some feedback from token holders to get a feel for what sort of thing people would be preferred. Our HE wallet will never be that big and it's taking over 20 weeks to earn 800 HIVE but it would be nice to get a feel so I know what's best to do with these fund very few months as they build. Which one do you think is best long term for LBI?

1- Power the HIVE up and delegate to leo.voter
2- Convert to LEO and power up to increase curation rewards
3- Buy UTOPIS and get some weekly HIVE div's coming in
4- Convert it to off-platform and use it as a stable LP tester investment

If you have any other idea's please drop them into the comments below. I personally would be happy to do any of these 4 things. If I had to put them in order, I'd prob go 2,1,4,3. What about you? This is not a vote are everything, more of an "id like your input" so I can decide what is best to do for us. I know people will suggest gaming but gaming is hard to value when reinvestments are required just to stay on par and earnings are reinvested into building more income. Earning 100% more of a gaming token each week is not good if the price of that gaming token has fallen 90%. I call this compounding a loss, your token balance increases each week but each week the bag is worthless $ and the $100 you earned 6 months ago is now worth $10. Of course, not true of all games.

Oh, last minute. I just remembered Some people had suggested that LBI provide staking for its token, maybe something like 1 week as an added layer of security to buy time if someone's account is hacked and holdings are sold. This would cost 1000 BEE to set. I just remembered this last minute and is an option as well.

Anyways, thank you very much for reading through today's post. I look forward to the comments and suggestions people have to share.

How should LBI allocate it's hive-token content rewards?

LBI=Leo Backed Investments