First the good, then the bad
LEO is looking good for it's big event on September 23rd when staking rewards will go live on LeoDex.io. Leo is still up over 6x against Hive after the expected decline in August. It seemed unlikely that Leo could keep up its strengthh after a 12x since June. The ratio held at around 0.5 and translated to a $ price of around 10 cents. Since then Leo is gradually climbing up again and I think we can expect a stronger rally in the coming days leading up to the release. Of course then we will gain a better insight into the value of LEO since we can measure it against the staking rewards received (the other part is the curation rewards we get from hLEO).
APR for leo.voter still at 6-8%
2 weeks ago I pointed out the discrepancy for delegating to leo.voter. Delegators received only around 6-8% instead of the proclaimed 16%. I don't think it's a big deal if there are some milder fluctuations, but we can see now that the APR has been unchanged for over a month while this hasn't been communicated from the project. Khal himself stated it like this:
The APR is 16% since LEO 2.0 and the new model uses a trailing + forecast average to pay delegators.
It seems that this model for calculating delegation payouts is not working very well (at least from what I can see). I would also like to know how the "forecast average" works. Seems a bit like a black box.
I made a table this time to show that I haven't picked a single date to calculate the APR. This is taken from my delegations in the last month:
For August and September (in the given period) we can see an average APR of ~7.6%. It's clear that the model used for calculating the delegation payouts is flawed. The main problem with this, however, is that this is not being communicated by the team.
It would be good if they change it or just simply communicate that for now a lower APR is being paid out. I don't have a problem with the APR being so low, but delegators should know that it's been like this for over a month.
It would take more than a doubling of the Leo/Hive ratio for the APR going back to around 16%. While that is definitely possible, I think more people should know that they aren't getting what they might think they get.
That said, LEO still looks strong and if the team keeps builds LeoDex with as much passion as before I have no doubt that it will be a success story!
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