#3 Economy - System Income Rewards Pool (SIRP) and LEO Token Mining
LEO Tokenomics Overview
- Max Supply: 50M
- Circulating Supply (April 2024): 18,627,849.48
- Staked Supply (April 2024): 14,157,165.604 (76%)
- Emissions Rate (April 2024): 0.208 LEO/Block
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Emissions
The emissions for LEO are 0.208 LEO/block and decrease over the next ~32 years. Block rewards stop when LEO reaches 50M tokens in circulation.
System Income (LeoAds, LeoPremium, LeoDex, LeoBridge Oracles and
LeoSubscriptions) are designed to replace this inflationary pool over time. As of right now, the System Income buys LEO and deploys it as permanent liquidity in various liquidity pools on DEXes (as of April 2024, this is deploying entirely into two pools: LEO-CACAO on Maya Protocol and LEO-HIVE on the Hive Blockchain).
Starting in 2033 (when inflation drops below 4%), the System Income will buy LEO and deploy it into the SIRP (System Income Rewards Pool).
This pool will continually grow in terms of rewards vs. the inflationary rewards pool. Starting in 2033 and until 2056, the LEO Inflationary Rewards pool will continue to drop in signficance as inflation drops and SIRP's share in the rewards allocated to users increases. By 2056, the inflationary pool will be 0% (as all LEO - 50M Tokens - is in circulation) and the rewards from the SIRP will be 100% of what is paid to users and active LEO POWER stakeholders on the platform.
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.
Instead, the SIRP contract will use system income to buy LEO off the open market and deploy it into the SIRP. The SIRP pays content creators and curators on the platform. As described above, from 2033 - 2056, the share of SIRP's payouts relative to the inflationary rewards pool will increase (as the System Income increases overtime and the inflation continues to drop Y-o-Y).
In the meantime (until 2033), the LEO community and team should aim to grow System Income as much as possible. This is a decade-long opportunity to deploy permanent liquidity into DeFi protocols. That liquidity will never leave the designated pools which means that as the LEO Token Economy grows, the $ value depth of those pools will continuously grow up and to the right.
Liquidity is important for any asset but it is even more so important for the LEO Token. Why? Because a large % of current and potential System Income is derived from trading and bridging the LEO Token. As mentioned above - LeoDex Affiliate Fees and Hive Aggregated swaps all run through the LEO Token Economy. Deeper pool depth = more volume = more system income = more permanent liquidity deployed.
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