I've been listening to content related to the imminent LEO tokenomics changes lately, the latest ones being this week's LEO AMA and yesterday's reveal event, which initially I thought would have been a launch party, meaning... launching of LEO 2.0. But that's still one week away - there is now a countdown on LeoDex (here):
Better read the update at the end before continuing
Either way, it's fun how my understanding of how things would work evolved in time, as more information came out. It's also true that I may have not been connected to the latest news like threads or tweets, but having a considerable LEO stake (without being a big one compared to the big stakeholders), I wanted to stay informed about the options.
So, after the inflation will be turned off one week from now, rewards will only be paid from buybacks using fees generated on Inleo and LeoDex.
My first impression which I'm not sure it was based on information or not, or it was something I assumed at some point, was that it would be a common pool between Inleo and LeoDex revenues and distributed homogeneous between the Inleo (mainly for curation, but also other rewards, like for LEO miners, HP delegators, etc.) and LeoDex platforms (for LEO stakers on Arbitrum).
I learned from the reveal event from yesterday that rewards will be paid on each platform based on revenues generated on that platform. That, currently and in the foreseeable future, means that the rewards for staking LEO on Arbitrum will be higher than rewards on Hive-Engine, because the majority of revenues of the team come from LeoDex affiliate fees.
That's one thing I learned.
Something else I learned and then unlearned. 😀
Mitch asked Khal if he can wrap LEO to Arbitrum LEO during the LEO AMA, and Khal said yes.
The truth is you probably can, but maybe you should wait... My initial impression was that staking LEO and USDC rewards will come online on Arbitrum at the same time with LEO 2.0, next week.
Nope, that's 3 months away! So... if you wrap LEO to Arbitrum now and keep it liquid (since there is no staking yet), you earn nothing. If you keep them staked on HE you earn curation rewards, lower as they will be after LEO 2.0 comes into effect next week.
LEO will be quite difficult to swap once moved on Arbitrum, at this point. That's because Arbitrum is deactivated on Maya where LEO is listed and has a liquidity pool, and will take some time until their team re-activates it, and the temporary routes via pLEO and bLEO haven't been added yet to LeoDex.
So yeah... I'd keep my LEO on Hive-Engine for the time being until things clear up.
Funny thing is that I started a LEO power down when I heard the rewards for staking LEO on Arbitrum would be higher, and stopped it when I came across the other important piece of information, that it is 3 months away.
When everything settle, I will likely have LEO on both chains. The 3 months thing is not badly chosen, given we will be talking about stablecoin rewards based on trading volume fees, very close to the end of the bull market.
There is one #question I have left for this, at this point: how long will the unstaking period be for LEO on Arbitrum? Because we have a bad experience in this regard, and I certainly don't want to repeat that.