For those not quite familiar with the LeoDex and InLeo platforms, one thing is very important at this point in time: LEO 2.0 tokenomics are in place since June 25th that reshaped the entire ecosystem in terms of rewards and value accruing. First of all the LEO token inflation was set to 0, while its supply was capped to 30 Millions (just a little bit higher than Bitcoin's 21M supply). Than, on the InLeo web3 social media platform we were introduced the SIRP (System Income Rewards Pool) model where from the income (like Premium Subscriptions), the platform's dedicated account would buy LEO off the market and pay it to creators and curators as opposed to using inflation for that. On LeoDex we were introduced to affiliate revenue which is used to buyback LEO. But what's most interesting is that this will happen until September 23rd, after which the 100% of LeoDex affiliate revenue will be paid to LEO stakers on the platform. For me this is like you hold a stock of the DEX revenue stream and you get to share part of its revenues and profits. And this is not just for a period of time, but rather in perpetuity.
A new era for Leo stakeholders
I’ve been around the LeoFinance (InLeo) community long enough to see a lot of experiments, pivots and resets, but this one feels with the most potential of them all. LeoDex isn’t just another trading frontend or a place to swap tokens, but it is growing into a platform with multiple and recurring income streams (Swap, Staking, Perps and more). Each LEO investor will become a direct participant to the affiliate revenue streams (and who knows, maybe others as well) just by holding and staking the tokens. This is a move to a new tokenomics model where there is no inflation, no false hope for the next hype wave (even that could help in having increased affiliate fees) and just a real mechanism where value flows back to those who hold and commit to the ecosystem.
How the LEO staking model changed
Until not a long time ago, holding and staking LEO on the Hive blockchain and Hive-Engine was about getting curation rewards from the LEO inflationary supply. Now, it’s about moving to a new blockchain - Arbitrum - and plugging into a revenue sharing model that sits right at the heart of a decentralized exchange. The more activity flows through the DEX will generate more revenue which will increase the earnings for LEO investors that are staking it. And since it’s on Arbitrum, the whole experience is smoother, faster and cheaper than anything we used to deal with back in the Hive-only days. Not only that we expanded to a new blockchain, but the marketplace is much higher and the potential increases accordingly.
The tokenomics changed for the better
What I like about LEO 2.0 model is that we’re finally in a closed loop system. Having zero inflation and a capped supply, staking is no longer diluted by new tokens forever and ever. Instead, everything relates on actual usage and the income that comes from it. InLeo’s SIRP model rewards creators sustainably on a highly appreciated web3 platform, while LeoDex now channels affiliate profits straight into stakers’ pockets. What can be better than this? And what I like about it is that the changes are coming in waves and are consolidating the LEO value, while allowing different types of accruing and earning afterwards. Image just the fact that you can still earn actively on InLeo and after that you can stake on LeoDex and get a passive revenue stream that will keep on giving. Contribute more, do more and you'll get more.
From the sidelines I am looking at InLeo and LeoDex like a model that any community from the Hive blockchain can follow one way or the other. It doesn't mean it needs to embed both models, but even a part of it can translate into a boost in different ecosystems. And with the expected launch of LEO staking on LeoDex starting 23rd of September, I think that we will witness what real revenue sharing is all about and how much the platform token can capture. I will be watching this closely and try to get involved in this new "big beautiful LEO 2.0 tokenomics".