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/biz/ - Business & Finance


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>> No.28534643 [View]
File: 62 KB, 749x413, passive-staking-decrease-apy-future.png [View same] [iqdb] [saucenao] [google]

Once fees cost more than $1 fiat per transaction, it is likely that the nodes will vote to lower fees in order to keep network costs reasonable. Businesses have indicated that they are willing to pay up to $1 per transactions. That would mean a token price of about $2.80 before that discussion has to happen. However, once the system switches over to LPoI, then the fiat price of transactions actually doesn't matter so much any more...the reason for this is that the major clients will all be running their own nodes and staking the LTO to the degree that their use of the network is effectively free -- "Net Zero". At that stage things become interesting because most of the circulating supply (80%+) will be owned by the clients and staked virtually forever...that means that the only source of liquidity will be passive stake holders (us)...at that point, even if the APY drops down to 1% for passive stakers, the price will inversely rise because of the supply shortage. That's when you get into triple digit LTO territory...and if you have a make it stack, and the price is triple digits, even low single digit APY would be enough to potentially live off of.

>> No.28416886 [View]
File: 62 KB, 749x413, passive-staking-decrease-apy-future.png [View same] [iqdb] [saucenao] [google]

APY has been 6-7% since LTO was as low as 2 cents, so these kinds of returns will likely continue as the network expands exponentially. I expect APY to begin to fall in proportion to the degree that exponential expansion of the network falls and starts to stabilize. There is no way to predict how far APY will fall. However, at that stage the vast majority of LTO will be held by the actual users of the network and they will have majority voting power. APY will fall to the level where "Net-Zero" is maintained. To the degree that this means you won't be able to live off the APY because your stack is too small, well, that's not what LTO cares about. LTO isn't for retail, its for institutions. This is why it is so imperative to accumulate a large stack early on, so that even falling APY's still yield nominal amounts of dividends that are quite significant.

>> No.28362067 [View]
File: 62 KB, 749x413, passive-staking-decrease-apy-future.png [View same] [iqdb] [saucenao] [google]

Because we are in the early stages of establishing the network. We retail plebs are serving to keep the network decentralized and providing liquidity to the LTO network while it establishes itself. Eventually our "services" will basically no longer be required, but by then the price of the token will be so high that we will all consider ourselves to have been well compensated for our contribution.

>> No.28194792 [View]
File: 62 KB, 749x413, passive-staking-decrease-apy-future.png [View same] [iqdb] [saucenao] [google]

Yes, this is important for new comers who are learning about LTO to realize, pic related. Don't have unrealistic expectations like $100 token price with current APY...not going to happen. But this is why it is so essential to establish a strong position while LTO is still a micro-cap.

>> No.28159141 [View]
File: 62 KB, 749x413, passive-staking-decrease-apy-future.png [View same] [iqdb] [saucenao] [google]

LTO was at 6-7% APY when it was at 2 cents, and it has maintained that yield up to 30 cents. As the network grows and Tx/day go exponential, this trend will likely remain for some time. HOWEVER, see pic related. The end game (if/when LTO is 2-3 digit price), the APY for passive staking WILL NOT be this high, and will probably be around 1% or less. This will occur as the network fully transitions to the Leased Proof of Importance model. This is why it is important to accumulate a large stake early on because in the mid to late stage the price relative to APY will not be at all attractive to retail investors who don't already hold.

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