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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This post was written by Shortsegments, who has been writing about cryptocurrency, the blockchain, digital ledgers, bitcoin, ethereum, and decentralized finance; where digital ledgers and smart contracts meet finance, for seven years. You will find his articles here on his blog Link to his blog.
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