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This cycle, described as a "permanent mechanism," ensures consistent daily operations, creating a reliable pathway for growth. As long as this cycle remains intact, the protocol presents itself as an ever-present buyer within the ecosystem, contributing to the demand for LEO tokens through its acquisitions and staking strategies.
A New Dynamic in Token Valuation
Historically, LEO was considered an inflationary token, with rewards primarily targeting its own user base. However, the transition towards employing revenue from Leodex and Ino introduces a deflationary aspect to the token. By adopting a model where a percentage of tokens gets burned when transferred across blockchains, the overall supply of LEO diminishes over time, enhancing its value proposition.