So Leofinance set out a day for staking Leo, the second-layer token of the project and even before this became a thing, I was already excited about staking the second-layer tokens. One of the reasons is, I was one of those people who was expecting the SMT on steem, it was touted to be revolutionary, of was one of those smart technical thingy that I couldn't really explain but it was a step forward, and because it's going to be, I was so positive about it.
However, we never saw the SMT because the chain forked and the core community members who could have pushed for the SMT left steemit. However, hive brought the aspect of true communities and tokenization and this is why I probably took the aspect of tokenizing the communities very seriously.
Now, this decision isn't backed by diversification of opportunities it's merely backed by being aptly involved in anything that can provisionally create a different innovation on the hive blockchain. The reality is, we haven't quite hit it when it comes to tokenizing the second layer and this is because many people are pitching their priorities and trying to squeeze out more value for themselves.
However one might say since people would prefer to squeeze the second-layer in preference for the main layer, what then is the essence of the second-layer? To me, one of the essences of the second-layer is diversification, growth, and development, it means that people can be able to build monetizable communities which might determine the degree of the value.
Now, one of the biggest aspect of Hive is that it's not built on the "highs* or lows of the native token. Its value is embedded in the usability of the projects that are built on it and since most crypto projects depend on Bitcoin for the price movement, in-chain projects can experience a bloom as a result of the growth that's being experienced on that particular project.
While splinterlands is more of a dapp on hive, we can account for the massive boom in price in early 2021 that wasn't controlled or determined by bitcoin. This is the same too for the Leo token hitting 1$, flipping hive and hitting a dollar was no mean feat for a second-layer token, but this wasn't accidental.
That feat proved that hive is capable of building second-layer tokens that can flip the price of the hive itself and while this needs a lot of work and structural framework it's possible to create less attention on Hive itself by shifting the attention to the other aspects the blockchain that can create other use cases. While the aim is money, if the aim becomes only money it might be difficult to see any value when the prices are down. This happened with steem.
Most people who experienced the bull run on steem were new to crypto, it's easier for them to think the bull run was normal and it might probably last forever. This created a huge buzz around the Money and not the tech or the innovation it could have potentially brought. It was crazy.
Not a lot of people including me knew that the stablecoin then SBD was supposed to be pegged to a dollar. At 13$ the wish was that it could go higher and when the dump happened, steem became a ghost of its normal self.
Although there were already signs during the bear market that things could change, steemmonsters that is now known as splinterlands was born on steem and maybe steem could have replicated what's currently happening now, but I feel only hive could be what hive currently is. Not to deviate though, I think the second-layer projects are only the beginning of what's going to happen to hive, but then it's a huge part of the ecosystem that's going to create an all-around relevance on the chain.
Here's why you should build too
I've been building my second-layer tokens for like two years now, and I must say, I'm happy about the progress. I think the individuals would determine the growth of the second-layer projects and this is to say, no one should neglect any of these opportunities. I think Leofinance has started quite well, as it's transcended from being just a second-layer to a predominant and influential project on hive.
Today is the official day to stake leo (LPUD) and I've done mine as quick as possible. This is creating an awareness to stake more leo, reduce the liquidity, increase the value while creating more relevance for the project in general. I think it's a wake up call for the other second-layer projects on hive and for now, I'm staking irrespective of anything. So pick your poison quickly, do your research and pitch your tent with the projects you believe in.
Interested in some more of my works?
The Intrinsic Propensity To Spend Money
Poverty: The Unwillingness To Spend?
A Scenic Bathroom Photoshoot
The Importance Of Having A Contingency Money Plan
Translational Value; What Is Your Worth?
Using Crypto As A Means Of Transferring Will
Posted Using LeoFinance Beta
Posted Using LeoFinance Beta
