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I created these encoder modules and LED rings to be connected to controls in Reaktor ensembles. Turning the encoder makes the Teensy board send incremental MIDI Continuous Controller messages over USB to Reaktor. In response, the knobs on the Reaktor panel rotate and output MIDI back to the Teensy to tell the LED rings the current knob positions. That way, the LED rings will always represent the actual position of the controls. When a Reaktor snapshot is recalled, all the LED rings move to the knob positions stored in Reaktor.
I am currently working on a new version using Neopixel Rings. These have the advantages of being pre-built, simpler to wire, and allowing separate control of color and brightness for individual LEDs.