Bitfinex launches real-time transparency initiative for its exchange token LEO

Bitfinex announced Friday it has launched a transparency initiative for its exchange token LEO.

The LEO Transparency Initiative was built around a real-time token burn redemption mechanism. Bitfinex is implementing a continuous burning mechanism, which will buy back LEO from the market every hour. The firm will use 27% of the consolidated revenues to purchase LEO tokens at market value until all LEOs are removed from circulation.

THE SCOOP

Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

To start, Bitfinex will burn revenue from trading fees only. The company will reportedly expand the burn over the following weeks to include all revenue streams "including deposit/withdrawal fees, funding fees and further exchange products."

The dashboard shows hourly data of how much LEO was purchased by Bitfinex from the open market and also how much is burned on-chain every 3 hours.

About Author

Larry joined crypto research full time in early 2017 and has expertise in capital markets, market structure and early stage DeFi companies/protocols and token economics. He has a background in economics and finance.