LeoGlossary: LEO
The native token for the Leofinance platform. It is a layer two token on the Hiveblockchain. This means that all data is posted to that network.
Hive uses the Proof-of-Brain mechanism which is arrives at consensus on articles and other content that is posted on-chain. Users have the ability to vote based upon the amount of stake they have with the system.
Users who stake $LEO (turning into Leo Power) are able to curate content, earning themselves rewards. Upvote values are based upon the amount of Leo Power an account has and the rewards (of the vote) are split 50/50 between content creator and curator.
LeoAds
The Leo token is vital for the ad revenue project, called LeoAds. This introduces web 3.0 to the platform.
Social media sites are renowned for their ability to generate income through the selling of advertising. This is something that benefits corporations such as Facebook or Twitter The users are the ones who are left suffering since they can only profit if a shareholder of the company.
This is the traditional web 2.0 model that is used by most businesses that operate on the Internet.
Web 3.0 seeks to alter this by bringing ownership to the user base. Unlike the other platforms, Leofinance allows the token holders to share in the direction of things. This means that governance can be built it. LeoAds provides a further separation from traditional social media by providing a financial benefit to the holders of the token. In other words, the users can earn money through their activities.
User create pages on the website, providing a canvas for advertisements to be placed. They are also the ones who generate the clicks on both the individual pages along with the ads placed. This produces revenue for the platform.
With Leofinance, LeoAds is run by a smart contract which takes the revenue and uses it to buy $LEO off the open market. Once this is completed, it is then distributed to the Leo Power holders, receiving a return based upon what is staked.
Access Token
$LEO is moving in the direction of becoming an access token. The idea is similar to what Elon Musk is doing with Twitter.
The idea is to link access to certain features based upon the stake one is holding. This means that increasing the amount of Leo Power one has in the wallet is enhanced for reasons other than speculation.
It provides an added benefit to those who HODL to token since newer people will have to acquire it in order to access desired features on the site.
Thus we see the token providing:
access speculation (potential for price appreciation) yield
This is all part of the evolving tokenomics tied to the Leofinance ecosystem.
Token Distribution
Utilizing the Proof-of-Brain (PoB) consensus mechanism, there are a number of ways that individuals can acquire $LEO. Most cryptocurrency is fairly straightforward. Those who want to accumulate simply have to buy it similar to any other asset such as a stock or bond.
Purchase is certainly one option when trying to get a hold of this token. There are other methods that can be applied.
Content creation allows creators to be rewards. Hence, one can earn it through his or her writing or videos.
Another way is through curation. This allows people to garner a return and effectively compound their Leo Power. Each time the vote button is pressed, a portion of that value is provided to the curator. This is paid out after the 7 day voting window closes.
The final way is through the buying of tokens on the market and distributing them such as with LeoAds. This is only the first in a string of projects that will be introduced, all designed to generate revenue that purchases tokens and passes them onto LP holders.
Value Capture
The $LEO is a value capture token. It is meant to garner the value for everything built under the Leofinance umbrella. Some of these projects are:
LeoThreads Cubfinance Polycub Hivestats
This differs from a medium of exchange token such as a stablecoin that is used primary for payments. While $LEO could serve in this capacity, the volatility along with tendency for speculation makes it ill-suited for that purpose.
Derivatives
There are three derivatives of $LEO in the form of wrapped tokens.
We have:
bLEO (Binance Smart Chain) pLEO (Polygon) wLEO (Ethereum)
They are accessible through liquidity pools located on the different chains. This presents a larger reach of the native token along with providing for arbitrage opportunities which aids in price discovery.
This is not to be confused with the Bitfiniex cryptocurrency that is named the same.
Related:
What Is Leofinance What is Hive
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