Leofinance Tokenomics 2.0; does it work???
Introduction
- Examples of successful crypto platforms using similar tokenomics to InLeo's SIRP model—which uses platform revenue to buy back and distribute or burn tokens—include MakerDAO (MKR) and PancakeSwap (CAKE). These projects have implemented deflationary models to drive value for token holders and support their ecosystems.
MakerDAO (MKR)
- Mechanism: As a pioneering decentralized finance (DeFi) lending protocol, MakerDAO uses a deflationary model to manage its governance token, MKR. Stability fees paid by users who borrow its stablecoin, DAI, are used to periodically buy back MKR from the open market and burn it.
- Sustainability: This mechanism ties MKR's supply reduction directly to the revenue generated by the protocol. As the demand for borrowing DAI increases, more revenue is generated, leading to more MKR being burned and increasing its scarcity. In July 2025, Maker launched a "Smart Burn Engine" to automate this process, allocating excess DAI reserves to buy and burn MKR.
PancakeSwap (CAKE)
_ Mechanism: PancakeSwap, a decentralized exchange on the BNB Chain, has transitioned its CAKE tokenomics toward a deflationary model based on revenue and token burning. A portion of the trading fees generated by the platform is used for regular buyback-and-burn events.
_ Sustainability: By linking CAKE burns to trading fees, the protocol creates a strong incentive for users to hold and stake CAKE. This drives demand for the token and aligns the interests of token holders with the overall growth and trading volume of the exchange.
Aave (AAVE)
Mechanism: More recently, the lending protocol Aave has also implemented an on-chain buyback program. Revenue generated from the protocol is used to repurchase AAVE tokens, which are then distributed to AAVE stakers.
Sustainability: The buyback program is a deliberate move to route surplus revenue back to token holders, aligning AAVE's tokenomics with a "real yield" model.
How these models compare to InLeo's SIRP
Revenue Source: The core principle is the same—use platform revenue to fund rewards—but the source of that revenue differs. InLeo generates revenue from its DEX (LeoDex) and content platform, while MakerDAO gets it from lending fees, and PancakeSwap primarily from trading fees.
Distribution vs. Burning: InLeo's SIRP buys back LEO and distributes it to stakeholders through content and curation rewards. In contrast, MakerDAO and PancakeSwap primarily focus on burning the tokens they buy back. Both methods achieve deflationary pressure but reward token holders in different ways.
Maturity: MakerDAO and PancakeSwap are more established projects with larger ecosystems and revenue streams, which adds a layer of robustness to their tokenomics. InLeo is younger and its revenue pool depends more heavily on its community's growth.
Last words...
These examples demonstrate that the revenue-buyback-and-reward model used by InLeo is a proven, and increasingly popular, method for creating sustainable and valuable crypto ecosystems.
The End
@Shortsegments
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I am certainly sure that these tokenomics system is what is helping to sustain the Leo token value
I think you are right
Thanks
Really interesting breakdown of Leofinance Tokenomics 2.0, I like how it focuses on building a sustainable system through buybacks and burns while still rewarding the community.
I am glad you enjoyed it.
#hive #posh
Thanks you
This makes a lot of sense.Using revenue for token buybacks and rewards seems like a smart way to keep the system strong. It’s interesting to see how Leofinance is following ideas from big projects like MakerDAO and PancakeSwap. Excited to see how it grows.
I see good things in the present and future
One must also think about the community and in this way, if the coin is bought, it will benefit, the price will increase and those who believed in the project will make a good profit. We have seen that the price of Leo has increased significantly a few months ago, so this proves that this project is quite good and people are still very interested in it, so it will give people very good profits in the future.
I agree.
I think we are living he life you describe.