We are getting closer to the release of the new UI into production. The target date is May 1, less than 2 weeks away.
During today's AMA, we got a bit more clarity about what is going to take place regarding the ad revenue.
It appears that the revenue model is being adopted. This is the use of a smart contract whereby advertisers buy ads utilizing Bitcoin through the contract. It is going to be a completely automated process, probably for regulatory (potential) reasons.
In other words, there is no human involvement in the process.
The ads that are approved end up being placed on the site, integrated into LeoThreads. It is similar to what takes place on Twitter. Many of the ads will look like Threads being made.
Of course, nothing operates in a vacuum. There was a new feature that is in the process of being rolled out.
News2Threads
Please bear in mind, this is not live. It is only in testing.
This utilizes ChatGPT to create Threads. The advantage to this feature is that it is user driven.
So how does this work?
From what was said on the AMA, one simply goes to the Leofinance discord. There will be a place where one can enter the News2Threads option. Upon entering, one can take an article or story from anywhere on the Internet and post it as a Thread.
The essence is ChatGPT will review the articles and create a Threadstorm. This is a multi-part Thread created that ends up being longer than 244 characters. Basically, we are looking at a quick hit source of information.
Why is this important?
The basic reason is that Twitter is often used as a source of news. There is no reason why Leothreads should not have it too. This can come in many forms. News2Threads is a way to garner different articles about news, sports, cryptocurrency, technology, photography, or celebrities (any TMZ fans) and get a "summary" on LeoThreads.
Ultimately, this application is dependent upon engagement. That means people posting things they are interested in and others might enjoy. As people with similar interests assemble, it should stimulate interaction.
Now we revert to LeoAds.
Activity is key. When Twitter was a public company, the advertising revenue generated was enormous. Now that it is private, we have no idea what is taking place.
Nevertheless, that is the model. Twitter is huge for engagement, generating over 500 million Tweets per day.
Can LeoThreads reach that level? We are not even looking for that. If it can attain 1/1000th, that would be 500K Threads per day. That would mean if we get the ad revenue that is 1/5000th of Twitter, we would be looking at a huge revenue stream.
Focusing Upon Revenue
The key is that Leo Power holders now will directly benefit. We will have to see what the reports look like since we have yet to see one. However, this is going to have to accompany the project.
Like many things in cryptocurrency, we can affect the return we are getting. We know the advertising models are dependent upon a variety of factors including traffic on a site and clickthroughs.
In other words, the more activity we place on LeoThreads, the better it is for our return. The ad revenue will be used to purchase $LEO from the open market and distribute it to Leo Power holders. Can this generate 5%-10% on the LP just through the ads?
Time will tell. However, if we get some decent numbers on Threads, we can see the revenues from ads growing.
It is something you do not find a great deal in cryptocurrency. Most talk about mooning as opposed to generating revenues that end up creating value and streams of income.
This truly is a Web 3.0 model.
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