We had a big announcement on the weekly AMA regarding the addition of the LEO token to Maya. The fork of THORchain, according to many, is setting itself up for some powerful growth, something that Leo can ride.
This is an important move because it bridges LEO to the outside world. One of the keys to having a robust system is for people to be able to get in and out of the asset. As it stands now, we are looking at very little buy pressure (before the announcement that is) since big money was basically barred.
With the addition to Maya, along with its tied to Thorchain, could mean that LEO is accessible to larger transactions.
Maya Will Have Huge Impact on Leo
Let us be clear, the entire platform is going to benefit from this.
Over the past few months, we discussed how platforms capture all increases in value, no matter how incremental, and spread htem to every user. Of course, this is not an insignificant addition but the premise still holds.
It is going to impact the platform to a great degree.
While this can come in many forms, we will cover the most basic in tokenomics in this article.
Massive Buy Demand On Hive-Engine
One of the clearest outcomes of this move the impact on Hive-Engine. This is the main location where people trade LEO. With a new outlet, we could see activity moving elsewhere.
Why does this place buy demand on Hive-Engine?
The answer lies in the fact that other tokens are distributed on a daily basis. People are having their wallets filled, assets that can be swapped for LEO. If the impact up the platform is like many believe, this is going to be an epicenter of buying.
Along the same vein, it is also a link to Splinterlands.
Consider this point: Splinterland tokens can easily be moved from the game to Hive-Engine. If there is an outlet from that network to the outer world, it will be followed. How can that be done easily? Swup SPS, as an example, for swap.Hive then flip it for LEO. Now one can move it across to Maya and do whatever is desired.
We all know that LEO is tightly held. A large percentage is already staked. With this addition, more LEO will find its way into the liquidity pool. According to what was said on the AMA, we are going to see a similar practice where the revenue generated from fees is going to purchase LEO and lock the value permanently into the liquidity pool.
This is a practice that is already in play with the Leo Premium subscriptions.
An Epicenter For People On Hive
If this takes off, even people who are not using Leo will being using it.
Leo will suddenly become a wallet system/swapping mechanism for the entire ecosystem. Since LEO will be the one on Maya, to get in and out of HIVE (or HBD) is going to require passing through LEO. When the bridge in the wallet is built, it seems like that will be the easiest way to transact.
Of course, that is generating fees for Leo, helping out the platform.
Here is where we see a larger reach. VSC is something that many of us are high on. While this is a lot more than just a swap network, that is one of the crucial functions it is going to provide. We can now add Leo to the list (it will actually be live long before VSC).
Even if people are simply using it for the wallet, this will increase the activity. One again, we are back to the page view discussion. Notice how it all feeds the same pot.
There is no reason why an ad cannot reside on the wallet page.
A Part of the Process
We have to keep everything in perspective.
Leo is a long term project. The addition to Maya will have immediate effects. However, the true value in Leo is being driven by ongoing development and adding to the platform. Here is where we see the difference maker in my view.
Basically, we are at the point where this is nothing more than the foundation. It is the plumbing that is going to allow for much greater progress in the future. This is the approach I am taking with some of my projects.
For example, one of the keys to digital platforms is recommend engines. Here is where page views increase and time using a site expands. An example of this is Music on Leo. Consider what it is like to listen to a song then have another one suggested. Of course, it doesn't take imagination since Spotify and YouTube all do that.
What happens when that is possible on Leo?
This is why I keep harping on building. It is also why I post that the community still needs to do its part. The Leo team is stepping up. The big question is whether the community will or not?
If you want the benefits that come from the platform, it is crucial that people contribute. Anyone who has Leo is a partial owner of the platform.
It is time people started to behave that way.