Leofinance Burns 4.6% Of Its Tokens

Leofinance had a token burn the other day, one that went mostly unnoticed.

Source

This is an ongoing affair. These tokens come from the enormous sell wall that was in place when the token was released.

A few days ago, 200,000 LEO were sent to the @null account.

It was sent from the @leo.bank account. There is still another 193.000 LEO in the account, which I presume will be burned next month.

With 4.3 million LEO outstanding, this amounts to 4.6% of the total outstanding that was eliminated.

As we can see, there are now just over 4.1 million LEO outstanding, with 82% of the total staked.

Burns are a great way to enhance the value that token holders have. This takes away from the existing supply, thus making what is remaining more valuable. Whether this is reflected in the price is up to the markets but, over time, when a platform keeps the tokens issued tight, there is a greater chance for price appreciation.

One of the great things about Leofinance, in addition to the sell wall burn, there are a number of other initiatives that produce revenue which is used to buy LEO off the market. This is also sent to @null.

The most obvious is the advertising that occurs on the different LEO sites. All the revenues from that are handled in this manner.

Creating an economy in such a manner requires a multi-faceted approach. For the token, there needs to be use cases that are coupled with the tightening the supply. Naturally, growth rate is vital to keep ahead of the inflation rate.

This is all part of the process of building a circular economy. Hopefully we see the other aspects built out so the community can grow out the economy.

In the meantime, burning some tokens is a good start.

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Posted Using LeoFinance