track the 2.0 launch in real time at https://leodex.io/leo

What is LEO?

LEO is the official token of the LEO Ecosystem. LEO's mission is to democratize financial knowledge and access. Born on July 3rd, 2019, we created LEO as a social media platform with its own token to democratize financial knowledge. We built a social media platform that allows creators to write and engage with content on-chain and earn LEO token rewards for doing so. In these last 6 years, we've developed dozens of apps for the crypto space and our flagship app https://inleo.io has evolved into a decentralized version of X with tokenized rewards and all content living on the blockchain.

What is INLEO?

https://inleo.io is our social media app we built to democratize financial knowledge. We've been building INLEO for 6 years now and have a full suite of features along with a thriving creator economy where users post and engage with content directly on the blockchain and earn tokenized rewards in our LEO token.

What is LeoDex?

https://leodex.io is our cross-chain DEX interface we built to democratize financial access. Offering hundreds of assets across dozens of blockchains with 500+ wallet connection options. We're building the best Cross-Chain DEX Web App in the industry, adding features relentlessly and growing the volume of the DEX using our unique Referral System that allows users to share 30% of our affiliate rewards on any swappers they recruit.

How Do LeoDex & INLEO Work Synergistically?

We've spent 6 years building and refining INLEO. It has become a gathering place for our community and has also allowed us to fairly distribute LEO (no premine, no VCs, no team fund).

Everyone who holds LEO today has earned their LEO fairly by using the INLEO social media platform. LEO 2.0 is something we planned to happen in the future as we always intended for LEO to have a fixed supply of 50M tokens. However, because of recent events, we've decided to accelerate this timeline. The accelerated 2.0 timeline has LEO 2.0 launching 6 days from when this blog post is published - you can track the upgrade event at https://leodex.io/leo - instead of ~2034. This caps the LEO supply where it is now - roughly 30M LEO is the new max supply. This can never be altered or increased.

Why accelerate the timeline? We've been building INLEO for 6 years and recently started building LeoDex. LeoDex has become the flagship app of our ecosystem. There is a massive opportunity for LEO to "go cross-chain" and focus on building the best Web App DEX interface on the planet. Along with this, our roadmap has shifted to focus on the Web App, then release LeoKit as an SDK for other apps to integrate our technology for seamless swapping and following that we'll release LeoDex as a Mobile Wallet Application.

This 3 step roadmap is focused on generating more value for the LEO Token Economy than being a standalone social media app is capable of.

INLEO still fits into the equation by being a critical social platform where our community can gather to talk about LEO, LeoDex and everything we are building together. INLEO democratizes financial knowledge while LeoDex democratizes financial access.

INLEO's Rewards Pool (as you'll see below) is transitioning from an inflationary model to a deflationary, buyback-based model. The rewards pool has been a great way to distribute our token to a wide array of hodlers for 6 years. Now it's time to shut off the inflation forever and focus on accruing value to the LEO Token by growing LeoDex Volumes.

General Tokenomics

1. Max Supply: 30,000,000 LEO
2. Circulating Supply: 30,000,000 LEO
3. Native Blockchain: Arbitrum
4. Bridged Blockchains: heLEO (Hive), bLEO (BSC), pLEO (Polygon)
5. Listed Exchanges: Maya (Native LEO on Arbitrum), Hive-Engine (heLEO), Pancakeswap (bLEO), Sushiswap (pLEO)
6. Emissions Rate: 0 (no inflation, no new tokens)

Fair Launch, No VCs or Team Stake

LEO has had the unique opportunity of a fair launch. Since our ecosystem started with a social media app, our token has been fairly distributed to anyone who joined our social ecosystem and created/curated content. The LEO token was launched on July 3rd, 2019. Nearly 6 years ago to the day.

There is:

1. No designated team stake
2. No VCs
3. No token unlocks

LEO has been entirely bootstrapped by the community and team for the past 6 years and will continue this way forever.

LEO 2.0 - 90 Day Protocol Owned LEO (POL) Buyback Period

For 90 days following the launch of LEO 2.0 (June 25th - September 23rd, 2025), 100% of LeoDex Affiliate Revenue From THORChain, Maya Protocol, ChainFlip and any other route providers we integrate now and in the future will buyback the LEO token in a designated POL vault and stake it into the Arbitrum-based staking contract for LEO (sLEO).

This vault will be trackable via the https://leodex.io/leo dashboard when LEO 2.0 is live. You'll be able to see the "Protocol Owned LEO" at any time to track the transparent buying of LEO.

This POL strategy was inspired by TCY and what we believe is a fantastic tokenomic design to create a token strategy that buys itself back using protocol revenue. The protocol owned LEO vault will buy LEO for this 90 day period, stake it as sLEO and earn USDC alongside all other sLEO stakers.

Once the 90 day buyback phase is over, the sLEO contract will begin paying daily USDC rewards to all Arbitrum stakers. This includes the POL Vault. The POL vault will use 100% of the USDC it earns to buyback the LEO token each day and stake it for more sLEO.

Each day the POL is earning more USDC and accumulating more LEO with it (each day, it has more sLEO than the day before). This creates a permanent buyer for the LEO token with a % of the total USDC rewards going to the POL Vault in a fair way. As long as LeoDex and LeoKit Affiliate Revenues are flowing in, POL will purchase more LEO off the market and permanently stake it for sLEO to earn more USDC the next day.

The POL vault permanently compounds more LEO into it's sLEO position by using its share of daily USDC rewards to buy LEO.

90 Day Volume-Based Airdrop to LeoDex Swappers

To celebrate the launch of LEO 2.0 and also the successful launch and proliferation of LeoDex, the volume-based airdrop will commence on June 25th.

2M LEO has been designated for this airdrop. The airdrop is designed to get new users to LeoDex and teach them about the product we are building and the LEO ecosystem that is developing around it.

The airdrop will operate from June 25th to September 23rd. More details will be in a separate blog post leading up to the official June 25th launch date.

Stake LEO on Arbitrum Via LeoDex

Staking LEO using the https://leodex.io/leo (when it's live) page will stake your LEO into sLEO on the Arbitrum blockchain. When you are holding sLEO, you earn daily USDC rewards equivalent to the amount of LeoDex Affiliate rewards that are earned from THORChain, Maya and ChainFlip (and any future protocols we integrate).

Following the 90 day buyback period, 100% of affiliate rewards earned by LeoDex will be paid to the Arbitrum Staking Contract where sLEO holders hodl their LEO. If LeoDex earns $100,000 per month in Affiliate Revenue from these trading protocols, then that means $100,000 USDC will be split amongst all sLEO holders via their daily USDC harvests each month.

INLEO Rewards Pool

Similar to LEO 1.0, users of https://inleo.io will earn LEO, HIVE and HBD rewards when the create/curate content on the INLEO Social Media platform. From an INLEO user perspective, there is no change in the User Experience from 1.0 to 2.0. Users still create Threads, Blog Posts and Shorts. Other users still upvote that content. Rewards are split 50/50 between Authors & Curators.

In LEO 2.0, the key change is "where do rewards come from?". In 1.0, rewards from LEO came from an inflationary rewards pool. This allowed LEO to be distributed to a wide range of holders over the past 6 years and created a fair launch for our token.

The LEO 2.0 Rewards Pool will operate on a buybacks-only model. There is 0 inflation for the LEO token now, so any LEO earned by INLEO users will come from buybacks in the SIRP.

SIRP | How INLEO Buybacks Fund Social Media Rewards

SIRP stands for System Income Rewards Pool

In LEO 2.0, INLEO's rewards pool is funded entirely by buybacks (no more inflation). Buyback revenue comes from:

1. Premium revenue ($10 per month collected in stable coins on @leopool)
2. Creator Subscription Revenue (users can subscribe to get encrypted on-chain content from their favorite authors for $5 per month. INLEO takes a 1% fee on each subscription)
3. Ads Revenue (ads displayed on INLEO generate ad revenue in stablecoins)
4. Beneficiary rewards to @leofinance (creators on INLEO can optionally set our on-chain account as a beneficiary to a % of their rewards. The majority of users set INLEO as a 5% beneficiary on their blog posts)

These 4 revenue-generating mechanisms (and potentially others as we develop them in the future) will use 100% of their revenues to buyback the LEO token and deposit those LEOs into the SIRP, which is how INLEO creators/users get paid daily for using https://inleo.io.

SIRP stands for "System Income Rewards Pool". The SIRP is what pays out creators and curators each day who create and upvote content on INLEO. The more that INLEO grows, the bigger the SIRP becomes as the 4 revenue generating mechanisms scale with the users on the INLEO Platform.

@leo.voter HIVE POWER Delegations

Delegations of HIVE POWER to @leo.voter help us distribute more HIVE & HBD rewards to our community members. In LEO 1.0 tokenomics, these were subsidized by the inflationary pool of LEO tokens.

In LEO 2.0, HP Delegators earn daily LEO payouts from buybacks using the HIVE earned from curation (about 10-12% APR earned via Hive). We forecast that the APR is likely to be higher under LEO 2.0 tokenomics than under LEO 1.0 tokenomics as the value of LEO/HIVE is likely to rise exponentially. Once the system is in place and delegators are earning under this model, the APR can be better formulated but our estimates are that delegators will see a significant double digit rise in APR as compared to 1.0.

The baseline APR from HIVE POWER is about 10-12%. If LEO outperforms HIVE (likely because LEO is now deflationary and Hive is inflationary), HP Delegators to @leo.voter will likely make exponentially more than 10-12% APR as the LEO they are earning each day is more and more valuable.

Delegating HIVE POWER to @leo.voter is a way to earn LEO autonomously each day. It's a bet that LEO will outperform HIVE in terms of price action. IF LEO outperforms HIVE, then the APR for delegating will be significantly higher than what it was in 1.0 (~16% APR in 1.0)

We encourage all delegators to keep their delegations running for at least 1 month into the release of 2.0 in order to see the impact. The payouts will be consistent and the APR will be significantly higher. This will continue to be the best way to earn LEO on the HIVE Blockchain. Instead of earning from inflationary rewards, it will be from buybacks only using the HIVE earned in @leo.voter's on-chain wallet.

This is also another form of buyback pressure for the LEO token as all curation rewards earned on HIVE buyback the LEO token and pay it out to delegators. If you assume that only some percentage of delegators will sell their daily LEO payouts, then there is a net buy pressure effect. For example, assume 50% of delegators sell their LEO they earn from delegating each day. That means 50% in net buy pressure as the other delegators aren't selling.

LEO Bridges | System Income That Makes LEO Deflationary

You can seamlessly move LEO between multiple blockchains using our bridging tech. Native LEO is on Arbitrum and every other version of LEO is a bridged version to connect LEO to multiple blockchains, DEXes and Ecosystems.

• Arbitrum (Native LEO)
• BSC (bLEO)
• Polygon (pLEO)
• Hive (heLEO)

A 1-5% fee (can be variable based on market dynamics) is charged on each bridge TX.

For Example: If User A wants to move 10,000 LEO from heLEO to LEO (Arbitrum), a 2% fee is charged (200 LEO).

Under LEO 1.0 tokenomics, this 200 LEO subsidized @leo.voter delegation payouts.

Under LEO 2.0 tokenomics, this 200 LEO is burnt by converting it into Arbitrum-based LEO and then sending it to the 0xDEAD address on-chain.

You can verify how much LEO has been burned by looking at the on-chain Null Address via Arbiscan. You can also view this on the new LEO staking page on LeoDex at https://leodex.io/leo (when 2.0 is live). It will show you the current circulating supply of LEO along with how much LEO has been burned by the bridges.

Other FAQ

How Does the Team and Community Afford to Develop?

We get this question a lot. If there is no printed team stake, no VCs and 100% of the affiliate revenue from LeoDex flows to LEO token holders, then how do we keep developing?

The team and community all hold LEO together. We succeed as the token succeeds. With the new Arbitrum staking contract, team and community members simply stake LEO into the contract and earn their fair share of daily USDC rewards from the LeoDex Affiliate Revenue.

For us to succeed, we need the LeoDex volume to grow as that will grow our USDC payouts and the value of LEO. We believe firmly in aligned incentives and we can't think of a better way to align our incentives than this.

How is LEO Deflationary?

LEO has been an inflationary token since launching on July 3rd, 2019. This has allowed a totally fair launch. Anyone who used INLEO (social media app) was able to earn LEO for the past 6 years.

LEO's block rewards are being completely turned off. The max supply of LEO that can ever exist is 30M LEO (this is the final supply on the day of the 2.0 launch).

Under 2.0 tokenomics, all LeoBridge revenue (when users wrap/unwrap LEO using our oracles to Arbitrum, BSC, Polygon and Hive-Engine) gets burned. This 1-5% fee (dynamically based on the market) burns LEO autonomously on the Arbitrum blockchain. You can track the actual supply of LEO using this arbiscan page where you can see the MAX TOTAL SUPPLY of LEO along with the current amount that is held by 0xdead (burned).

The majority of bridged LEO is from arbitragers who arbitrage the price differential of LEO across the various blockchain DEXes where its listed (Maya Protocol for LEO, Hive-Engine for heLEO, Sushiswap for pLEO and Pancakeswap for bLEO). This new burn policy effectively allows the LEO Token Economy to absorb a 1-5% fee from arbitragers and burn it from the supply. Absorbing economic value into the total LEO Token Economy in the long-run.

Who Owns LEO?

The token has been fairly distributed over 6 years since the launch of both the token and our social media platform, INLEO.

At the time of this writing, the majority of holders are on heLEO, holding LEO on https://inleo.io and using it to be active on social media and earn rewards.

With LEO 2.0 going live, we expect a large migration of LEO back to the native version of LEO which is on Arbitrum. The new staking contract will likely have attractive APRs (dependent on the LeoDex.io swap volume).

You can check the holders of LEO at any time by going to the various blockchains where LEO exists and looking at the block explorer.

What About LEO Miners (LEOM, LEOMM)?

The LEO Miners will continue to operate identically to how they did in LEO 1.0. The miners earn 15% of the SIRP which is now replacing the Inflationary Rewards Pool. So Miners will mine 15% of the total SIRP pool each month.

Is INLEO Leaving Hive?

No, INLEO is remaining on Hive. All content remains on-chain.

The native LEO token is migrating away from Hive-Engine, however. LEO 2.0 puts native LEO on the Arbitrum Blockchain as "LEO".

The LEO that remains on Hive is called "heLEO" and is a wrapped version of LEO on Hive-Engine. There is no change on the user's perspective as this migration happens in the background. If you hold LEO on HE, you can continue to hold it there. If you want to bridge back to native LEO, you can do so at any time simply by using the bridge to unwrap heLEO to native LEO on Arbitrum.

LeoDex operates firmly in the Cross-Chain space. Our token is now an Arbitrum-based token. INLEO is a Web3 Social Media platform that stores/retrieves data on the Hive blockchain.

What Drives the Long-Term Value of LEO?

A handful of built-in economic drivers are meant to capture and retain value into the LEO Token Economy. At the end of the day, the leading indicator of growth is LeoDex swapping volume. Growing the volumes means growing the core economic inflows for the LEO Token and this is the team and community's primary focus. The KPI we should all focus on is LeoDex Volumes.

• PoL (Protocol Owned LEO) is a permanent bid on LEO: Buybacks using USDC earned daily from sLEO to buy more LEO, stake as sLEO and earn more USDC to buy more LEO the next day. Transparently track the buybacks on https://leodex.io/leo
• LeoBridges burn 100% of their income (1-5% fee that is charged each time any user / arbitrager wraps or unwraps LEO to any blockchain where LEO operates an oracle)
• Utility from staking LEO on Arbitrum - staking LEO on Arbitrum earns you daily USDC harvests and additional features on LeoDex
• Utility from staking LEO on INLEO (Hive-Engine) - staking LEO on INLEO allows you to curate content and earn social media rewards from the SIRP
• Innovation on the roadmap - the LEO team has been building apps in the crypto space for 6 years now and our attention has landed on the cross-chain industry. See the question about our roadmap for more insight into the future of LEO developments

What is the LEO Roadmap?

The roadmap for the LEO token economy is:

1. Build the best cross-chain Web App
2. Release LeoKit as a full suite SDK for any apps to plug-in to cross-chain and allow their own swaps. 100% of revenue from LeoKit will flow to the LEO (Arbitrum) staking contract and pay daily USDC rewards alongside LeoDex Affiliate Revenue
3. Build and release our LeoDex Mobile App

Posted Using INLEO