/biz/ - Business & Finance

>>28714957
- Clients and integrators are incentivized to run their own node, buy LTO, and stake it; the staking rewards offset the network fees they pay for usage of the network -- NET-ZERO, "get paid for paying the bill"

- However, what is to stop a client from buying and staking far more LTO than they are actually paying in fees, thus decentralizing the network -- which could be fatal to the entire platform? Enter: "Leased Proof of Importance" (LPoI)

- LPoI disincentivizes clients from owning TOO MUCH LTO **because staking rewards diminish exponentially relative to their actual usage of the network**. LPoI rewards clients and integrators to own just the right amount of LTO relative to their usage of the network, which ensures that it remains decentralized.

- LPoI therefore enables the economics of NET-ZERO to work without threatening to centralize the network. It is a sustainable, attractive economic model that is highly attractive to businesses.

- However, there is also an interesting logical outcome to the NET-ZERO model that LPoI enables: once businesses and integrators buy and stake LTO, that LTO can be effectively be considered to have been removed from the circulating supply...

- In other words, to the degree that the LTO network continues to expand and transactions grow exponentially, the basic laws of economics and common sense dictate that the available supply of LTO will be removed from the circulating supply in proportion to that network growth...

- Because there is an incentive to own enough LTO to be able to use the network on a NET-ZERO basis, the price will inevitably rise. Even at a double or triple digit token price, it will still make economic sense to buy enough to achieve Net-Zero, ESP SINCE CORPORATIONS CAN ADD THE LTO TO THEIR BALANCE SHEET, effectively making the purchase of LTO "Net-Zero" as well!

- In this late stage there will be only one primary source of LTO supply left...the remaining passive stakers who held with diamond hands.