LPS: Measuring the Success of LeoStrategy

LeoStrategy is a community-built project that is built as a permanent-capital vehicle to acquire LEO onto its balance sheet as permanently-staked (can never be sold) sLEO on LeoDex. This "Staked LEO (sLEO)" earns USDC daily rewards alongside all other LEO stakers and autocompounds its share of USDC back into more LEO. This creates a permanent buyer.

LeoStrategy also builds other products and services with the explicit purpose of simply earning any form of revenue it possibly can and utilizing that revenue to purchase more LEO on a daily basis.

To-date, LeoStrategy has purchased nearly 2.1M LEO and this number continues to climb every single day. They are following a very similar playbook to Microstrategy for BTC but they are applying that playbook to LEO.

They are also taking a much more "revenue-centric" mindset. That is, determining value-gaps and filling those value-gaps.

By providing value, they accrete value to their LSTR shareholders. This value accretion is best measured via LPS aka LEO Per Share.

LEO Per Share is simply calculated as the total LEO held on the permanent balance sheet divided by the outstanding shares of LSTR.

With about 2.1M LEO on the balance sheet and 100,000 LSTR outstanding, the current LPS = ~21 LEO Per Share.

The velocity of growth is critical: how fast can LeoStrategy increase the LEO Per Share of LSTR without diluting LSTR shares. This is precisely how Michael Saylor generates "accretive yield" - which he measures simply by BPS (Bitcoin Per Share).

Measure LeoStrategy's fund value and overall success in this simple way and you will see the mountain of value that is being built. The snowball effect is starting to take hold. 2.1M LEO is nearly 8% of the total supply of LEO Tokens (LEO has a fixed max supply of 30M LEO that is fully issued).

What happens when LeoStrategy accumulates 10% of the supply aka 3M LEO and perma stakes it? What happens when that figure is 10M LEO (33% of the supply)? That means only 20M LEO are actually circulating in terms of what can be sold to the market.

LEO is becoming scarcer and scarcer but scarcity is not the only thing that matters. You must match scarcity with demand.

In this clip, I talk about LeoStrategy's LPS metric and how to analyze/value their projected future growth.

Posted Using INLEO