It is easy to talk in millions. However, when it comes to LEO, even things into the thousands can have an enormous impact.
One of the ideas that was mentioned recently is bringing decentralized finance (DeFi) to Leo. This would be done by incorporating some of the previous DeFi platforms into Leo.
In other words, we are looking at a swap feature built into the application.
We all know @khaleelkazi is a big fan of Thorchain and watched it closely over the years. This is a move that likely is going to pay dividends for all of us on Leo.
Leo: Generating Revenues From Swap
What potential does something like this hold?
To answer that question, we have to dive into the tokenomics. We have a system whereby revenues are used to buy $LEO off the open market. Depending upon where the funds came from, this is either distributed to the Leo Power holders or is dropped into a liquidity pool.
Whatever the final destination, the key is that we see revenues being generated to purchase the token.
At the present moment, we are looking at ad revenue and subscriptions to Leo Premium.
Here is where swapping caught my attention when it was mentioned on the AMA.
Most are aware that some of these can generate millions of dollars in fees. Leo does not require anything at this level. What if, instead, it was able to generate $10K per month.
Considering how tightly help the outstanding float is, we could see this have a significant impact.
Of course, it only adds to the ongoing expansion of the platform.
Network Effects
I regularly talk about network effects. Unlike most, I focus my attention on those effects outside the social media realm.
This is something key for people to remember. Web 3.0, in my view, suffers greatly because it fails to understand that most network effects are not akin to social media. Google search, for example, is not dependent upon your friends or family using it. It matters none who is using it as long as someone is.
To me, the epitome of this is Amazon.
Here is where we see a company with no social media presence yet they have incredible network effects. How do they achieve this?
Simply put, they keep adding to the ecosystem to such a degree that people keep spending money. While they do focus upon new customers, they regularly get more money out of their existing users.
This is what Leo has to focus upon.
Certainly, with Web 3.0, we are dealing with something a bit different. Nevertheless, Leo has to develop ways to get the existing users more involved.
The ability to engage in a manner similar to Thorchain, even if on a much smaller scale, is a breakthrough idea. While it might not generate millions in monthly revenue, we can certainly expect thousands.
How do I know this?
It is a rather simple answer: it is a service that is needed.
Most are aware that we need bridges to the outside world. Leo could provide this to the user base, enhancing the experience of everyone on the platform. Naturally, given a choice, those with Leo will be more likely to use a service they are receiving a financial benefit from.
Growing The Package
It is vital that Leo start to implement some of the basics of platform development. There is a "science" to this that is worthy of following.
Services are a crucial feature and the missing link for Web 3.0. We can all see how little is truly offered within this realm.
By incorporating a multitude of ideas, we can see how things start to spread. If, for example, we have 100 different features that generated some type of revenue, how much would be brought in each month?
Part of the answer would be how many does the average person utilize?
Of course, with newer features means the ability to place ads on the pages. If there are tens of thousands of additional clicks, that is added money coming in.
Notice how we are creating many streams of income, even off the same service.
This is how platforms operate. And with Leo, it is evident how the incremental value is captured and distributed to the Leo Power holders.
Posted Using InLeo Alpha