Bitfinex announces LEO token burn initiative

Bitfinex announced the launch of the UNUS SED LEO Transparency Initiative. This development was on 14 June.

Bitfinex explained in simple terms that the initiative will see the exchange’s parent company iFinex use its gross revenue to purchase LEO tokens. This process would be at market prices in what is referred to as the UNUS SED LEO burn mechanism. The new system would launch alongside the LEO Transparency Dashboard. This would provide real-time information into all collected platform fees and LEO token burns.

Bitfinex while commenting more on the logistics added –

“We have decided upon a continuous burning mechanism — verifiable and in real-time — to keep the process as fair as possible for our users. As our revenues flow in continuously, we felt that the fairest approach to token buybacks would be one built around continuous and constant redemptions. We are doing this to remove the possibility of uncertainty from LEO holders, subsequently allowing our community to track iFinex revenues, as well as LEO token burn quantities, in an open manner.”

Bitfinex added that at first, the system would only involve revenue from trading fees, but the company would expand it to other revenue streams, including funding fees and other services. Bitfinex clarified that the initiative would include entities such as EOSfinex and that the tokens would be bought “at market rates and on an hourly basis, equal to a minimum of 27% of consolidated revenues of iFinex”.

Bitfinex threw light that the burn mechanism would stop only when there are no more tokens in circulation. The crypto exchange further added that the LEO tokens that are used to pay trading fees on the exchange would also be burned. At least 80% of the funds recovered from the Bitfinex hack would also be used to buy and burn them.

Recently, Malta-based cryptocurrency exchange OKEx announced the listing of its native token OKB on another leading crypto exchange Bitfinex. Besides adding support for OKB, Bitfinex is also listing USDK a stablecoin developed together by OKLink, a blockchain company and Nevada-based Prime Trust.

Bitfinex wrapped up by sharing more information about UNUS SED LEO Token. The UNUS SED LEO token was launched following a successful 1 billion U.S. dollar raise. This offer was in a unique dual launch which saw the token distributed to contributors across both EOS and Ethereum. The purchase price was on par with USDt with no discounts available. The total supply of UNUS SED LEO is 1,000,000,000.