LBI launched as a token with a similar structure to SPI, basically a pooled investment token, with a focus on the "Leofinance" ecosystem as it was known at the time (now branded as Inleo). Over time, it has diversified and invested in other crypto's off-chain, paused dividends to focus on growth, and experienced some stagnation.
Recently in the Spinvest discord, there has been talks around winding it up in some form. Maybe it's time has been and gone, or maybe it just needs some fresh focus, and a revamp. I have floated that I would be interested in taking over as the operator of this project, and freeing up @silverstackeruk to focus on his other projects, being the flagship Spinvest, the hugely successful EDS, and the DAB joint venture.
Now I'd like to present my ideas to revamp LBI, and revive it as a project with a future.
LBI 2.0
My goal would be to set LBI up as a token that balances between being an income and growth investment. The LEO eco-system that is LBI's primary investment has undergone significant changes over the years, and LBI still holds a large sized stake of LEO, its cornerstone investment. That will not change in this plan.
Here is how I see LBI being revamped.
Resume dividends. I think there is sufficient assets in LBI to warrant it issuing a weekly profit share. A token with low liquidity, that is hard to exit without loosing value, and no return on investment is a hard sell. My plan would see weekly dividends resume after the first month.
Liquidity. In month two, my goal would be to establish a liquidity pool on Tribaldex/Beeswap. The pairing would be LBI/LEO. A small portion of weekly income would be used to provide an incentive for LBI holders to add liquidity to this pool. I don't see LBI having "protocol owned liquidity" it owns in the pool, I'd like the pool to be built by LBI holders. The key point here to make this attractive to everyday LBI holders would be that LBI tokens held in the pool are included in the calculation for weekly dividends. So, by adding to the pool, you are not loosing out on dividends, and you will also earn a part of the LP rewards. Enhancing LBI's liquidity, making it easier to buy or sell, improves it as an asset.
Buy Back and Burn. A small portion of weekly income would be used to buy back LBI each week, and burn it. This would be a small number, but over time it makes LBI scarcer, and holders will gradually gain through the total assets being divided by slightly less LBI tokens each week. The percentage of income used here each week would be small, but over time it would become noticable as the LBI:LEO ratio grows, meaning each LBI is worth more in LEO terms.
Grow non-LEO, HIVE income. My goal would be to return off chain funds back on to HIVE, and invest them in other HIVE income producing options. This would be done for a couple of reasons, including making it easier to operate and manage, improve focus and bring fresh income to the project.
Growth. Each week, a decent chunk of the income would be retained and invested for growth. I don't want LBI to fade by paying out all its income, Growing income over time would be my goal.
Focus. LBI would become my sole focus here on HIVE. Currently, I manage a wallet for Spinvest, being the @spinvest-leo account. I would wind this wallet up, transfer assets back to the @spinvest main account, and give LBI my 100% focus.
Feedback. If LBI holders have suggestions, I'm all ears. I'll set up a dedicated community on INLEO, and post regularly on threads to try to rebuild LBI as a community. If anyone wants to help with that process, I'd love to hear from you.
The details.
Here is how I'd like to split income each week:
- 40% of income to dividends.
- 40% of income reinvested.
- 5% set aside as LP rewards.
- 2.5% used to buy back and burn each week.
- 5% paid to Spinvest for assistance with automation and coding.
- 7.5% operator fee (for my time and energy).
Without many recent reports to look at, I'll assume an income total of roughly 700 LEO per week. This seems to be a ballpark from late last year, and I feel quite achievable given we would bring non hive assets like BTC and ETH back to invest in other HIVE based income producing investments.
This would give a split from the above breakdown.
- 280 LEO for dividends - (0.0014 per LBI roughly)
- 280 LEO to reinvest - (worth $28, or 88 HIVE at current prices)
- 35 LEO for LP rewards (This would mean the LP would have 140ish LEO per month as LP incentives)
- 17.5 LEO to buy back and burn - Maybe 7 LBI each week at a (guess) of 1LBI = 2.5 LEO currently
- 35 LEO to SPI (I will need a little help from my friends)
- 52.5 LEO as my operator fee - current value is around $5.25
So, I guess the next question is, why would I do all this for $5 bucks a week?
Well, I think it can be a lot more. I like the prospects for LEO token, and think they are going to continue to improve over the coming years. If this proposal is implemented, and I do take over as operator, I'd buy significantly more LBI tokens off the market, and build my position dramatically. Then, the operator fee would be a portion, and my LBI dividends would be significant also. There is a lot of off-chain value that can be brought back to HIVE, and boost income.
And lastly, I'm looking for a new challenge and a hands on way to build a crypto income.
For those that don't know me, my name is John (many refer to me as JK), my main accounts are @jk6276 and @jk6276.holdings, and I currently run the @spinvest-leo wallet. I live in a regional town in Australia, and I've been on HIVE and before the fork, STEEM for a number of years. I feel I have proven my trustworthiness over the years, but of course there will be checks and balances to ensure LBI funds.
One other area I'd like to address is around what other HIVE based assets I'd look to, to boost income over time. I'm thinking DAB, SIM, SPS and more to begin with. SIM and SPS focused on the liquidity pools, and DAB via building a BDOND stake. This is just the beginning, and in this area I'd be very open to feedback and suggestions. The focus would be income, which could easily be liquidated back to LEO and added to the above weekly distribution.
That's my proposal, what do you think?
Over to you, the LBI token holders to see what everyone thinks and if you would stay on board with this vision for the future of LBI. All feedback from stakeholders would be welcome.
I have set @lbi-token as 100% beneficiary for this post