You are viewing a single comment's thread from:

RE: LeoThread 2024-07-21 14:11

in LeoFinance5 months ago

Flywheel

Until 2033 (9 years), all System Income will buy LEO off the market and deploy it as permanent liquidity in DeFi LPs for the LEO Token. Right now (June 2024 as of this writing), this is LEO-CACAO and LEO-HIVE.

Why these two pools? Because of the Hive Aggregation Technology that drives revenue into the LEO Token Economy (more system income through affiliate fees + LeoBridging fees). As these 2 pools grow, the $ volume per month that can be transacted on HAT will increase. More $ volume = more system income = more deployed as permanent liquidity (a flywheel for the LEO Token Economy).

In the year 2033, the LEO Inflation rate will drop to 4% per year. At this time, the SIRP contract will be launched. Once SIRP is launched, the system income will no longer buy LEO off the open market and deploy it as permanent liquidity.