Delegating to @leo.voter
Hive, the blockchain powering communities like LeoFinance, allows users to delegate their Hive Power (HP) to curators who upvote content. One popular curator is @leo.voter, known for its focus on LeoFinance content and its tiered system. But is delegating to @leo.voter actually profitable? Let's delve into the details and explore the differences between the tiers.
The Profit Potential:
Delegating HP to @leo.voter essentially means sharing your voting power. In return, you earn a portion of the curation rewards generated by @leo.voter's upvotes. These rewards come from various sources, including author rewards, curation rewards, and token airdrops distributed through InLeo.
The Tiers Explained:
@leo.voter offers three tiers with varying profit potential and requirements:
Tier 1: This is the lowest tier, pays out an APR of 13 % in liquid LEO, any amount of delegation will give a return.
Tier 2: For this you have to change your payout to "staked", and you will receive 20% APR on your delegation, but in staked LEO.
Tier 3 : Requires the same as in Tier 2, but you have to be subscribed to LEO Premium, this gives you an extra 2%, so 22 % APR in staked LEO.
Key Differences:
This account is a Premium account and has "staked" enabled, so 22 % APR
The main differences between the tiers lie in the choice of "liquid" or "staked" returns. Of course I would always recommend to choose to change you payout to "staked". As it is probably your intention to get the best return possible. And you can always unstake your LEO if you want.
Being LEO Premium is a choice, which involves a payment of a subscription fee of 10 LEO per month. It demands a high HP delegation, to get this extra 10 LEO in return from that extra 2 %. So, I would calculate it wisely, if that is the only reason you choose to become a Premium member.
If you decide to change your rewards from liquid to staked, you can do it via this link: https://labs.inleo.io/dashboard
Profitability Analysis:
The profitability of delegating depends on several factors, including:
Hive price: Higher Hive prices lead to higher curation rewards, increasing your profit.
Content engagement: Actively engaging with LeoFinance content (liking, commenting) can boost your rewards through the LeoThreads system.
Delegation size: Larger delegations within a tier lead to proportionally higher rewards.
Conclusion:
Delegating to @leo.voter is a profitable way to earn passive income from your Hive Power, especially for active InLeo users. However, carefully consider the tiers and their requirements before making a decision. Remember, diversification is key in any investment strategy, and Hive is no exception.
I delegate 1500 HP to @leo.voter as of today, it used to be 500 HP, and I changed to Tier 2. This will bring me in 132.20 LEO per month, which at the current price of LEO, equals 8.46 USD per month. On a delegation of 502.50 USD. Not that bad, if you ask me, I would say, pretty damn good!
Sincerely,
Pele23
Posted Using InLeo Alpha