In this post we would like to present you the magic of the Liotes project...
When you buy LENM miners, you will get payouts in the LEN token (Liotes Energy). What is magic is that LEN tokens will gain value constantly over time…
3speak wasn't working when we uploaded this post, so you can watch the video on Lbry
The central point of the project is the liotes fund. 100% of the sales of LENM that we make is put in this fund and powered up. The Hive Power on this account is then leased out and we get daily or weekly interest payments.
25% of all the interest payments will be dedicated to buy back LEN tokens.
Let’s make an example:
The liotes fund has 2000 Hive Power. It leases this Hive Power out at 10% APR. It gets 200 Hive in Interests payments which is around 4 Hive per week. 25% of this is used to buy the weekly supply of 1000 LEN which means that 1000 LEN would be worth 1 Hive.
Now let’s see what happens if the liotes fund has 20’000 Hive Power. With 10% APR, it would earn 2000 Hive interests. Which is around 40 Hive per week. This would mean that with 25% of this 1000 LEN would be worth 10 Hive.
What you can see from these two examples is that if the fund doubles in size, so does the value of the LEN token.
The more the fund grows, the more the value of the LEN token grows in a linear relation.
The liotes fund has several different income sources. All these income sources are added together to make the fund grow.
Whenever a LENM is sold on the market (only if it bought directly from liotes), the income will go 100% into the liotes fund
25% of the interests generated by the project are reinvested in the fund. Like that the fund grows even if there are no new LENM sales
Whenever you have Hive Powered up, this stake grows at a rate of about 3.2% per year. The fund will grow just thanks to that.
50% of the interests generated by the project will be used to develop additional income sources. These income sources will be developed one after the other until they are self-sustainably generating income. The biggest part of these income sources will be reinvested but 10% will be used to grow the fund.
There will be a constant supply of LEN tokens created by the LEN mills every week. We will leave a basic supply of about 5000 tokens on the blockchain. For all the tokens that will be above this threshold, we will create buy orders on the market. Every week we will cancel all remaining buy orders and with the new funds create new ones at the new price.
The LEN tokens that are bought like that are all sent to
@null.
The Liotes Fund can only grow in value and there is a multiplication effect built in. The bigger the fund is, the faster it will grow. Since the size of the fund has a direct effect on the buy back price of the LEN token, the value of this token will grow in a linear relation to the fund size.
At the beginning it's probable that LEN won't have that much value but it's value will grow over time in an accelerated fashion.
P.S: In the next post, we will talk a bit more of these additional income streams...
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