Bitfinex announces implementation of burn mechanism for removing LEO tokens from circulation

Bitfinex announces implementation of burn mechanism for removing LEO tokens from circulation

June 14, 2019

After Bitfinex made headlines with the launch of its in-house LEO token, the exchange is in the news again after it announced the launch of the UNUS SED LEO Transparency Initiative, on June 14.

This initiative, built around a real-time token burn redemption programme, marks the launch of the token burn mechanism, where LEO would be continuously burnt to buy back the token from the market. The report talked about the burn mechanism and stated,

“The token burn mechanism will see iFinex (and entities such as eosfinex) buy back UNUS SED LEO from the market, at market rates and on an hourly basis, equal to a minimum of 27% of consolidated revenues of iFinex. The burn mechanism will continue until 100% of tokens have been redeemed and no more tokens are in circulation.”

The exchange also informed the community that the LEO tokens used to pay trading fees on Bitfinex, would also be burned. This decision is aimed towards the purchase of circulating tokens. Bitfinex has also introduced their UNUS SED LEO Transparency Dashboard which enables token holders to verify insights into the token buyback process.

Source: Medium

The Leo token was launched on May 22, following which, the company raised $1 billion with a dual-protocol launch. According to Bitfinex, the total supply of UNUS SED LEO was 1,000,000,000.

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