LEO, Bitfinex’s exchange token, was launched in late May after allegedly raising $1 billion in USDT and USD in a private token sale. Similarly to BNB, one of LEO’s most important value capture propositions is its quasi-claim to Bitfinex’s cash flow via the burning mechanism.
In contrast to Binance, which only burns BNB once a quarter, Bitfinex buys back and burns LEO tokens every three hours. Bitfinex purchases LEO at market value worth 27% of the revenue and then burns the tokens in perpetuity until all of them are removed from circulation.
Initially, Bitfinex only burned the revenue from trading fees but it eventually began adding other revenue streams — revenue from its IEO platform (started on July 8), revenue from margin funding activities (started on July 14) and revenue from derivatives trading (started on Sept.