The whole LEO supply of the week was burned!

avatar

The whole Leo supply of the week was burned.png

If you have read through the documents linked to the new Cub finance platform that has been built on the Binance Smart Chain, you probably know that there are some fees for most of the Farms and liquidity pools. Except for the CUB Farms and Dens, there is a deposit fee of 2 to 4%.

These fees are extremely important for the tokenomics of the platform. They are used to actually burn CUB but also bLEO. 20% of the revenue generated will be used to unwrap and burn LEO. Thereby reducing the supply of this token on the home blockchain Hive.

In the very recent post published by @leofinance, they reported that during the first 7 days a total of 35'628 bLEO has been unwrapped and sent to @null on the hive blockchain.

pg divider203.png

To realise what this represents, let's try to put this number in context

The LEO supply

At the moment every 100 blocks 17.67 LEO tokens are minted. This means that every day, we have a fresh supply of 5'088 LEO. Over a whole week there are 35'622 new LEO tokens minted if my calculations are correct.

This means that over the last week, the burning of bLEO corresponded to 100% of the supply of new LEO. In other words the whole token supply of the week has been sent to null!

The LEO token was created in July 2019. Every year the supply of the token will be reduced by 7%. Because of that, after July 2021, the weekly supply of Leo will be reduced to 33'122 tokens per week.

If the income on CUB finance stays at the same level, we will quickly see a shrinking total supply of LEO tokens!

With the hype around the token, I believe that the demand for the token won't decrease so we might see a quite exceptional price development for the LEO token in the coming months!

pg divider203.png


Let's connect ! You can find me on these platforms:

Posted Using LeoFinance Beta



0
0
0.000
26 comments
avatar

Ohh I did not know that a whole week of LEO is being burned thanks to buy-back and burn mechanism.

Actually CUB is an addictive project that is adding massive value to our ecosystem. With such an open mind, we will have great days very soon :)

Posted Using LeoFinance Beta

0
0
0.000
avatar

CUB is definitely quite addictive and I don't know whether the hype will be ongoing but this is definitely an amazing sink for the LEO token.

!ENGAGE 20

Posted Using LeoFinance Beta

0
0
0.000
avatar

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

0
0
0.000
avatar

Oh wow, wasn't aware of that - that's actually really huge!
Fun times ahead of us :D

Posted Using LeoFinance Beta

0
0
0.000
avatar

That's definitely pretty cool :-). I will try to get some more LEO as long as it's still somewhat affordable :-)

!ENGAGE 20

Posted Using LeoFinance Beta

0
0
0.000
avatar

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

0
0
0.000
avatar

Deflationary mechanics are awesome! Especially when they are equal or greater than the amount of new tokens entering supply..

Thanks for putting this into context! I was happy with the burn news today but didn't stop to compare that to weekly inflation..

Posted Using LeoFinance Beta

0
0
0.000
avatar

When I made this calculations I didn't take into account other sources to burn tokens like adrevenues. So I believe this is quite powerful and will have a direct impact on the price of LEO

!ENGAGE 20

Posted Using LeoFinance Beta

0
0
0.000
avatar

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

0
0
0.000
avatar

You are assuming that the number of transactions remains the same with the same CUB income. Only time will tell.

Posted Using LeoFinance Beta

0
0
0.000
avatar

You are totally right about that. However even if there are less transactions in the future, this is an additional sink for LEO tokens that will limit the supply and that wasn't around a week ago. We had growing LEO prices before but this will add another level to it.

!ENGAGE 20

Posted Using LeoFinance Beta

0
0
0.000
avatar

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

0
0
0.000
avatar

Man that's alot of LEO burned this week. I don't exactly think this is a bad thing but the liquidity in the market will probably be an issue for a long while.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I rather think that this is a great thing. If the supply is reduced, the lack of available tokens will translate in a higher token price. Let's get some more LEO :-)

!ENGAGE 20

Posted Using LeoFinance Beta

0
0
0.000
avatar

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

0
0
0.000
avatar
(Edited)

Interesting. However I fear that with lower rewards there might also be less deposited and therefore less fees made... You know us Germans always have something to nag about :)

0
0
0.000
avatar

I think that the first week was quite amazing and there was a real hype about it. I think it's logical that the amount of fees generated will gradualy go down. However this is a new sink for the LEO token that wasn't around so far and I believe it could really give an additional boost to the LEO price.

!ENGAGE 20

Posted Using LeoFinance Beta

0
0
0.000
avatar

Thank you for your engagement on this post, you have recieved ENGAGE tokens.

0
0
0.000
avatar

This sounds like very good news for the LEO token holders and for LEOFinance authors! Removing liquid tokens from the market (burning, staking) is always a good indicator of possible price rise...

I didn't pay attention that they have burned so much LEO! Thanks for sharing this info!

0
0
0.000