Bitfinex to Use 27% of Tokinex Revenue to Burn LEO Tokens
Bitfinex has committed to using 27% of Tokinex’s past and future revenue for burning the LEO utility tokens.
Bitfinex unveiled LEO in May as the native utility token for its initial exchange offering (IEO) platform Tokinex. Parent company iFinex committed to burning LEO tokens, until commercial circulation runs dry, in the LEO token whitepaper:
“On a monthly basis, iFinex and its affiliates will buy back LEO from the market equal to a minimum of 27% of the consolidated gross revenues of iFinex (exclusive of Ethfinex) from the previous month, until no tokens are in commercial circulation. Repurchases will be made at then-prevailing market rates. LEO tokens used to pay fees may also be used to satisfy this repurchase commitment.”
The recent, official blog post stressed that the 27% figure applies to “past and future” revenues.
Bitfinex said that it has now used revenue generated by the first IEO on Tokinex, Ampleforth, to buy up outstanding LEO tokens. Ampleforth’s IEO raised $5 million on the platform within 11 seconds, selling 10% of its token supply.
As previously reported by Cointelegraph, Bitfinex said it repaid $100 million of outstanding loan facility to stablecoin operator Tether. The repayment came months after New York Attorney General Letitia James filed a complaint alleging that Bitfinex had lost $850 million and used funds from Tether to hide the losses.