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Plan to revamp LBI

John@jk6276 (72)864d

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.

Image Source: The last LBI regular update

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.

  1. 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.

  2. 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.

  3. 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.

  4. 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.

  5. 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.

  6. 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.

  7. 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:

  1. 40% of income to dividends.
  2. 40% of income reinvested.
  3. 5% set aside as LP rewards.
  4. 2.5% used to buy back and burn each week.
  5. 5% paid to Spinvest for assistance with automation and coding.
  6. 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.

  1. 280 LEO for dividends - (0.0014 per LBI roughly)
  2. 280 LEO to reinvest - (worth $28, or 88 HIVE at current prices)
  3. 35 LEO for LP rewards (This would mean the LP would have 140ish LEO per month as LP incentives)
  4. 17.5 LEO to buy back and burn - Maybe 7 LBI each week at a (guess) of 1LBI = 2.5 LEO currently
  5. 35 LEO to SPI (I will need a little help from my friends)
  6. 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

Posted Using InLeo Alpha

Comments · 14

  • @jk6276(72)· 753d

    !sbi jk6276

  • @hivebuzz(74)· 844d

    Congratulations @jk6276! You received a personal badge!

    Happy Hive Birthday! You are on the Hive blockchain for 6 years!

    You can view your badges on your board and compare yourself to others in the Ranking

  • @bozz(83)· 862d

    As a former member of the LBI-GOV team before it was dissolved, I think something like this should be taken to a vote for the holders. I'd also like to see some kind of Gov team created again if LBI is going to "spin back up". Part of the draw of the token was the fact that it was a DAC and as holder we got to have a say in how things were going to be run. Unfortunately, it became pretty obvious that most people didn't care, they just wanted the dividends, but some of us did. I'm not opposed to pulling the outside investments back to Hive, but I don't think SIM or SPS are the best options. SPS is effectively dead (for now) thanks to the move to GLINT and no real idea of when the next piece of the roadmap will be accomplished. Based on past history though I would expect years not months. Is SIM that DCITY token? I'd suggest BXT or PWR as an alternative. Perhaps even ZING, I feel like that has more potential right now than SIM or SPS. I'm 100% on board with EDS or DBOND/DAB. Even LIOTES to some degree. I have a decent stake in LBI, so I'd like to see it succeed.

  • @metzli(68)· 862d

    This sounds good, but I think you should pay yourself more. I see burn out on projects left and right because people try to run these investment tokens in a "selfless" manner then get upset when people expect what was promised.

    I would like to stick to building WITH LEO. I know there are people who don't believe in the LEO team at the moment, and that's fine - they should go invest somewhere else. I hold LBI because its LEO based, if it were to not have a LEO Base (weather it be investment, income, calculating worth based on LEO) then I would not be interested, I would cash out and... buy more LEO.

    I also like the idea of SPI still gaining an income from the project - purely based on my SPI HODLings.

    Regarding building a LEO/LBI pool, I would be interested and would need to be taught how to join the pool. I'm sure I've been taught before but I didn't hold on to the knowledge.

    I own 662 LBI tokens and if you would continue to work the project (and let us know on a weekly basis how much the tokens are worth) and make sure it stays LEO based (whatever that means) I would most definitely buy more tokens.

    Thank you for this proposal I think SPI is a great project and I think building similar projects is great for investors, great for the Blockchain, and in this case, I'm hoping it is also great for LEO.

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  • @lukaszolejnik(53)· 863d

    I think, before we move to another paradigm or go back to original one, we need to establish how f****d we are.

    It's easy to make assumptions and calculations on Leo/Hive only income, but a great deal of LBI's holding was cut off (purposely) from us and decimated. I'm happy @silverstackeruk managed things the way we have some btc behind LBI.

    I'm some minor fish and due to Leofinance's actions I lost half of my initial investment. Let's not build Leo holdings but Hive holdings instead.

  • @jocieprosza(68)· 863d

    @jk6276 thank you for this post. I was waiting for something like this, I even started to write down some of my thoughts. Nevertheless, here's my opinion.

    I would like LBI to drop Leo focus. Degrade it and move towards the things that brought us the most value - which I find Hive. Leo has been nothing but a disappointment so far and can't really see why should we trust it at all. It's too centralised, I have some personal negative experience and I guess LBI is heavily affected by bHBD stunt as well. I know LBI price is noted in Leo, the whole project is denominated in Leo, but let's not put too much hope in it. Let's use it when it's reasonable (like @leo.voter delegation). But I vote to stay as far away from Leofinance as possible. The same goes with LBI-Leo pool. Let's focus on swap.hive instead.

    There haven't been a report posted in a while and before making decisions we need to know where do we stand with CUB, bHBH and bHive. (@silverstackeruk).

    We need to find authors to create more content. It's the foundation of our growth.

    Let's negotiate your terms. What if LBI would pay you 2.5% in Leo( or Hive if we switch) and 2.5% in LBI (meaning we would buy LBI for 5% in total). This would create a bet - the better results the greater your profit would be.

  • @ammonite(73)· 863d

    I like the idea of revamping LBI. I still hold all of mine and believe the rise of Leo can lift many boats. Producing more content for the blog would be a good way of increasing the income and I always enjoyed the posts where I could learn what was going on with Tokens outside of Hive. I suppose all this will have to come with a community vote so I will be reading for other pros and cons before casting mine but thank you for putting yourself forward for the challenge.

  • @ecoinstant(78)· 864d

    The magic, real magic, would be a return to posting. How many posts per week do you think you can manage?

    With that in mind, assuming the answer is a solid number, 100+ EDS is a must. I would also put out for consideration some amount of INCOME tokens. Its a lesser known project, that I manage, but I know ssuk sees its value. Additionally, when not posting, you could reblog a post from a member and distribute that vote through our unique reblog member curation.

    I like your management ideas, liquidity is the big issue (after or around the lack of posting/updates), I have provided liquidity on the market and I would do so with much more confidence knowing that there were divs and this plan involved to improve the other mechanics.

  • @pizzabot(60)· 864d

    PIZZA!

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  • @curation-cartel(52)· 864d
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  • @flauwy(74)· 864d

    Sounds all pretty good to me. I would vote for it all with the 3386 LBI I manage. And nice to see you being interested in LBI again. !1UP

  • @shanibeer(74)· 864d

    Some interesting aspects here:

    • change of operator - I'm guessing that means handing over keys?
    • operator fee and plan to build an income through the fee and income from the token. I like these innovations and it would be a good model for other tokens when an operator want to move on, rather than projects disintegrating. Also great to see options to build permissionless jobs on HIVE.

    The suggestions for building the token and, especially, the incentives for LBI holders to build token liquidity look good.

    As an SPI holder, I feel one of the things that SPI can help with is contributing the know-how and infrastructure support to developing and refreshing projects, so the ongoing fee to SPI looks good. Had you thought about a handover fee from the fund, or is this your proposal to handle that aspect?

  • @lammbock(69)· 864d

    I like the combination of dividends and buyback. That makes it comfortable to not sell it! :)

  • @josephsavage(67)· 864d

    Generous to set somebody else as beneficiary without using #sbi-skip.

    I never invested into any of these investment pool tokens (with one exception where they coordinated a swap for SBI bonus units so they could start out strong with upvote value). I usually prefer to manage my assets more directly, except for when I can buy in at significant discount to NAV. I'll sometimes give up a little control if it means I can buy $1 of assets for $0.50

    The plan sounds solid to me, but I don't know enough about the holdings and their cash flows to give a real opinion.