Threadcast link:
@taskmaster4450/re-leothreads-3bbgnf9xb
Link to recording:
https://x.com/taskmaster4450/status/1913276786000945486
Speakers
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Exploring the Future of Leo on Arbitrum
In this episode of the Lions Den Twitter, hosts Task and Khal discussed the potential move of the Leo token to the Arbitrum blockchain. While Leo currently resides primarily on the Hive Engine Layer 2 platform, the team has been exploring ways to expand the token's reach and capabilities.
Limitations of Hive Engine
Task began by highlighting some of the limitations of Hive Engine as Leo's current home. As a centralized Layer 2 platform, Hive Engine has faced occasional downtime and availability issues in the past. Additionally, the liquidity and trading options for Leo are somewhat constrained, as it can only be swapped for other Hive Engine-based tokens.
Introducing Arbitrum Leo
Khal then explained the rationale behind creating an Arbitrum-based version of Leo. The key differences are:
Token Supply: The Arbitrum Leo has a maximum supply of 50 million tokens, compared to the 10 million max on other bridged versions like Polygon Leo. This was designed with the potential move to Arbitrum in mind.
Token Name: Instead of being called "aLeo" or "wLeo," the Arbitrum version is simply called "Leo," allowing for a more seamless transition if the token were to become the primary Leo.
Bridging and Interoperability
Task and Khal discussed the process of bridging Leo from Hive Engine to Arbitrum. Users can currently bridge their Leo tokens over, with a small fee deducted in the process. This allows them to access the broader DeFi ecosystem on Arbitrum, including platforms like Maya, ThorChain, and ChainFlip.
Evolving the Leo Tokenomics
The hosts then explored potential changes to the Leo tokenomics, should the Arbitrum version become the primary Leo. The key proposal is to move away from the current inflationary rewards pool and instead implement a "system income rewards pool" funded by revenue generated from the InLeo platform and the LeoDex decentralized exchange.
Under this model, any revenue from sources like premium subscriptions, advertising, and AI-related services would be used to buy back Leo tokens from the market, which would then be distributed to users based on their voting power and engagement on the InLeo platform. This would eliminate the need for ongoing token inflation, potentially driving up the value of Leo.
Maintaining Hive Engine Integration
Despite the focus on Arbitrum, the hosts emphasized that the Hive Engine integration and functionality would be maintained. Users would still be able to stake their Leo, participate in curation, and leverage the existing social features of the InLeo platform.
Conclusion
The discussion highlighted the team's forward-thinking approach to the Leo ecosystem, exploring ways to enhance the token's decentralization, liquidity, and long-term sustainability. While the transition to Arbitrum is still theoretical, the hosts outlined a vision that aims to balance the existing Hive Engine-based utility with the broader opportunities presented by the Arbitrum blockchain and the broader DeFi ecosystem.