RE: What Moving LSTR to Base Could Actually Mean for Current LSTR Holders
You are viewing a single comment's thread:
Yes, scarcity is fine, but is deflation really great for price appreciation? Look at Thorchain – in one year, it will burn about 1 million RUNE (which is something like 100,000 LEO burned or "permanently" staked compared to their maximum supply). The price of RUNE has not changed. Many people even think it's completely useless. But let's leave that aside...
But everything else you said, I also said in my previous post, only perhaps in more detail. In order for the price of LEO to exceed $10, Leodex.io would need to generate incredible and currently impossible profits. Because I definitely don't think that LEO will reach USD 10 without leodex.io earning more than USD 300-500k/month in fees to provoke a little FOMO and increase the APR for staking sLEO...
Either way, I believe we will get above $10 at some point, and sooner rather than later.
LFG
There's no question that LeoDex is probably the most important cog in the wheel at this point, but I think you are underestimating the influence that LeoStrategy will have on the ecosystem. The market-making/volatility harvesting, the ad revenue, the portfolio of products, the AI, and probably some more things we haven't thought about yet are all going to be funneling revenue into buying LEO and staking it.
I agree, burning tokens is virtually irrelevant to the performance of the token. In fact, I would rather see them use those tokens for paying out curation. The capped supply is enough. No need to whittle them away, especially since the small amount really isn't going to make much of a difference in the long haul anyway. Whereas adding them to the curation rewards could.