UNUS SED LEO
Crypto Overview
Overview
UNUS SED LEO is a utility token issued by iFinex (parent company of Bitfinex) in May 2019. The token was created to help the company recover from a loss of $850 million in customer funds which were frozen by authorities. The primary utility of LEO is to provide discounts on trading fees on the Bitfinex platform.
Intended Utility
The token's main purpose is to serve as a utility token within the Bitfinex ecosystem, offering holders trading fee discounts and other benefits on the platform. LEO token holders can receive up to a 15% discount on taker fees and up to a 25% discount on maker fees.
Actual Usage
LEO is actively used on the Bitfinex platform for its intended purpose of fee reduction. The token also serves as a means of payment for services across iFinex's ecosystem. Additionally, Bitfinex commits to using 27% of its monthly revenues to buy back and burn LEO tokens until none remain in circulation.
Token Distribution and Governance
The initial token distribution was done through a private sale. iFinex has maintained transparency regarding token burns through regular reports. The company continues to execute its buyback program using verifiable on-chain transactions.
Technology and Revenue Model
The token operates on both Ethereum and EOS blockchains. The revenue model is straightforward - users purchase and hold LEO to receive discounts on trading fees. This model does not involve interest (riba) or gambling mechanisms.
Crypto Impact
To assign a comfort level investing in UNUS SED LEO from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to UNUS SED LEO.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
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