If you have read through the documents linked to the new Cub finance platform that has been built on the Binance Smart Chain, you probably know that there are some fees for most of the Farms and liquidity pools. Except for the CUB Farms and Dens, there is a deposit fee of 2 to 4%.
These fees are extremely important for the tokenomics of the platform. They are used to actually burn CUB but also bLEO. 20% of the revenue generated will be used to unwrap and burn LEO. Thereby reducing the supply of this token on the home blockchain Hive.
In the very recent post published by @leofinance, they reported that during the first 7 days a total of 35'628 bLEO has been unwrapped and sent to @null on the hive blockchain.
To realise what this represents, let's try to put this number in context
The LEO supply
At the moment every 100 blocks 17.67 LEO tokens are minted. This means that every day, we have a fresh supply of 5'088 LEO. Over a whole week there are 35'622 new LEO tokens minted if my calculations are correct.
This means that over the last week, the burning of bLEO corresponded to 100% of the supply of new LEO. In other words the whole token supply of the week has been sent to null!
The LEO token was created in July 2019. Every year the supply of the token will be reduced by 7%. Because of that, after July 2021, the weekly supply of Leo will be reduced to 33'122 tokens per week.
If the income on CUB finance stays at the same level, we will quickly see a shrinking total supply of LEO tokens!
With the hype around the token, I believe that the demand for the token won't decrease so we might see a quite exceptional price development for the LEO token in the coming months!
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