This is a very interesting development. The Leo loan and staking trick sounds nice, but I doubt it will work for long; it sounds unsustainable. Making the denomination constant can help keep things stable in spite of the volatility of crypto. I'm excited to see how everything works.
It isnt a trick. How do you figure that. Dont real estate investors do this all the time?
They take the value of a property, mortgage it and then use the proceeds to buy another property which they rent out and get income from. Then the income from the properties are used to pay off the mortgage.
So you are saying this is an unsustainable trick?
I have heard of groups buying houses on loans, renting them out, and paying for the loan with rent. Last I heard they were having difficulty paying for it because of issues with maintenance, bad renters, and times where there are no renters. There are cases where it works, but I've seen cases where it doesn't.
As for how it will work with Leo, I don't know much about the tokenomics of Leo, and how the curation APR is calculated. Would more people delegating HP to the Leo voter not affect the APR? With more Leo tokens being printed, that could increase the supply, and maybe lower the price which could also affect the APR.
Of course there are cases where it doesnt work out. There are jobs that dont work out either.