Bitfinex LEO Burn Initiative Explained

Introducing the LEO Burn Initiative

On June 14, cryptocurrency exchange Bitfinex dropped an exciting announcement on Medium: they’re launching a LEO burn initiative! This step is being implemented by iFinex, Bitfinex’s parent company, as a grand plan to boost the value of their utility token UNUS SED LEO. Seeing how hot the crypto scene is, they figured this was the best way to make things sizzle!

The Mechanics Behind the Burn

So, what’s the deal? The LEO burn mechanism allows iFinex to use its gross revenue for purchasing LEO tokens on the market. Sounds fancy, right? Well, it certainly comes with some serious benefits. With the introduction of the LEO Transparency Dashboard, users will be able to keep track of the platform’s fees and the burning numbers in real-time. Transparency? Yes, please!

Track What Matters

Bitfinex stated, “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.” If only they could take that same transparency to the last pizza slice in the breakroom!

Revenue Streams Galore!

Initially, trading fees will fuel this burning fire, but Bitfinex has promised to widen the scope to include other revenue streams:

Deposit fees
Withdrawal fees
Funding fees
Miscellaneous services

So basically, if it involves making money, it’s on the table!

Aiming for an Empty Wallet

When will this burning craziness end? Well, it won’t stop until there are no more tokens left in circulation. Talk about a long-term commitment! Yet, they will also be making the burn process easier by including LEO tokens used for trading fees and at least 80% of the funds recovered from the infamous Bitfinex hack.

The Backstory

For those who came in late, Bitfinex launched its UNUS SED LEO utility token on May 17. However, excitement was dulled somewhat earlier in May when Bitfinex and its associated stablecoin Tether faced a legal investigation in New York for supposedly misrepresenting their reserves. Talk about drama!