LEO 2.0: The Launch of Deflationary Tokenomics
The LEO token, which previously funded rewards by creating new tokens (inflation), is making a big change. It's moving to a system where no new LEO tokens will be created, and the total supply might even decrease (deflationary).
What's Happening?
Instead of printing new LEO tokens for rewards, the INLEO platform, especially its successful LeoDex app, will use its earnings to buy back LEO tokens from the open market. These bought-back tokens will then be placed into a special pool called the System Income Rewards Pool (SIRP). This SIRP will be the new source for author and curation rewards.
This important change was originally planned for later, but because LeoDex has been doing so well and making a lot of money, the team decided to make the switch much sooner. "Wen" (when) has become "Soon."
Key Points of LEO 2.0:
- No More New Tokens: The old way of creating new LEO tokens for rewards is ending. This means LEO will no longer be an inflationary token.
- Rewards from Income: Rewards will now come from the money generated by INLEO platforms, mainly LeoDex.
- Buying Back LEO: The money earned will be used to buy LEO tokens directly from the market.
- SIRP Funding: These bought-back LEO tokens will automatically fill the SIRP, ensuring a steady supply of rewards.
- Rewards Continue: You'll still get rewards for your posts, comments, and threads, but the source of those rewards will change from newly created tokens to tokens bought back from the market.
- LEO Becomes Deflationary: By stopping the creation of new LEO and regularly buying back tokens, LEO is set to become a deflationary asset, meaning its total supply will decrease over time.
Why is this a Big Deal?
Think of it like this:
- Inflationary (Old Way): Imagine a company that keeps printing more shares to give to its employees. If they print too many, each share might be worth less.
- Deflationary (New Way): Now, imagine a company that uses its profits to buy back its own shares from the market. This makes the remaining shares more valuable because there are fewer of them.
This shift aims to make LEO more valuable over time by creating scarcity. As the supply decreases and demand for the INLEO platform grows, the value of each LEO token should theoretically increase. This also makes holding LEO more attractive, as its value is tied to the success of the platform.
The LEO team, who are also LEO token holders, believe that by making the ecosystem succeed, everyone involved will benefit.
Important Dates:
The LEO 2.0 launch event is scheduled for Wednesday, June 18th, at Noon EST. The team will be sharing more detailed information through videos and weekly Q&A sessions every Tuesday at Noon EST.
The End
@shortsegments
#thankyou #for #reading #my #post
The team also encourages everyone to use LeoDex.io for trading. You can even get a 10% discount on trades by using the referral code "shorty."
Join under me and I will send you Leo! and Hive in Appreciation!
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