LEO Token (LEO)

Tokenomics & Utility

A supply designed to decline

LEO began with an issuance limit of one billion tokens. The original distribution plan centered on the private offering rather than an ongoing schedule of rewards for producing new blocks. Its defining economic feature is the repurchase-and-burn commitment: the white paper says iFinex and its affiliates will buy back LEO worth at least 27% of the previous month’s consolidated gross revenues, excluding Ethfinex revenue, until no tokens remain in commercial circulation. Burning removes the repurchased tokens from supply. Bitfinex has said that its move to zero trading fees did not change this commitment because it is based on iFinex revenues as a whole. (bitfinex.com)

The original plan also assigned funds from two possible recoveries to additional burns. It called for amounts equal to at least 95% of recovered net funds from Crypto Capital and 80% of recovered net funds from the 2016 Bitfinex breach to be used to repurchase and burn LEO. These provisions depend on funds being recovered and on the net amounts available under the plan. (bitfinex.com)

For holders, utility comes mainly from account-level benefits rather than the burn itself. Bitfinex says LEO can reduce its fee on peer-to-peer funding earnings by up to 5%, with the reduction based on the user’s average qualifying holdings during the previous month. Certain deposit and withdrawal benefits also apply, and eligible affiliate activity can receive multipliers linked to LEO holdings. The exact benefit depends on the service and the account’s holdings. (support.bitfinex.com)