LEO is a digital token issued by Unus Sed Leo Limited for the operation of the iFinex ecosystem. UNUS SED LEO was established by iFinex after Crypto Capital, the company that handles its payment, saw that some of its funds were confiscated by the government. iFinex is the parent company of Bitfinex.
The background of LEO issuance is that Bitfinex assets are frozen. Many investors understand that LEO issuance is used to raise funds for repayment. However, it can be seen from the new white paper that the income from LEO can be used for working capital and general business purposes, including capital expenditure, operating expenses, debt service and other capital restructuring activities.
Ifinex has announced a plan to gradually buy back tokens from investors. All BFX tokens will eventually be redeemed and burnt until none of them circulate in the market. A transparency initiative has also been launched so that the crypto community can monitor the progress of the initiative and ensure that it meets its stated objectives.
How does Unus Sed Leo Limited (LEO) Work?
As a functional token of the platform, LEO is also known as a token that empowers the Bitfinex community and provides tools for investors seeking to maximize output and capacity on the Bitfinex trading platform.
LEO can provide better discounts for users who trade digital assets in Bitfinex, reduce the transaction cost of users, and users can buy more LEO to obtain higher level service fee discounts. Meanwhile, the repo policy of LEO can also positively promote the price of LEO.
iFinex promises to buy back UNUS SED LEO from the market every month. More than 27% of iFinex's revenue will be repurchased at the market price and LEO will be burnt. The burning mechanism will continue until 100% of the tokens are redeemed.
What is Unus Sed Leo Limited (LEO)?
LEO is a token of Bitfinex community, which can obtain better value and preferential service fees on the Bitfinex trading platform. The total supply is set at 1 billion, and there is a monthly repurchase and burning mechanism.
Compared with some cryptocurrencies only launched on a single blockchain, LEO tokens are distributed on two blockchains. 64% of the initial supply is placed in Ethereum, and the remaining 36% is on the EOS chain.
Bitfinex has launched a dashboard that provides the latest supply information per minute and how many LEO tokens have been burned.