Emission Schedule
Supply
There is a max supply of 50M LEO tokens. The current supply (November 2023) is 16.8M LEO. New LEO enters the ecosystem at a programmatically declining pace through block rewards over the next ~32 years. Over that time, the block rewards that come from inflation slowly decreases as the percentage of block rewards that come from real revenue (ads, premium, subscriptions) increases.
Block Rewards
Each block, a small amount of LEO is created and 100% of it goes directly to a "Rewards Pool". This rewards pool is where content creators and curators earn LEO through Block Rewards.
The current LEO per block is 0.208 with a block time of 3 seconds.
The Rewards Pool is a daily pool of LEO tokens that are created through inflation. The inflation rate of LEO is currently ~6,000 LEO per day or 2,190,000 LEO per year. This inflation rate slowly drops each year on a programmatic block schedule. It is set to reach a total max supply of 50M LEO in the year 2056 (roughly 32 years from now). As the years go by, the LEO Inflation rate continues to drop and the percentage of block rewards that are derived from system income increases.
System Income
INLEO is an attention economy. It is able to generate system income through 4 primary methods (at present day):
LeoAds
LeoPremium
LeoSubscriptions
LeoPromotions
LeoAds is an ad protocol that we have built. It is a combination of UI-based code and smart contract-based code on the backend. LeoAds allow companies to display ads on inleo.io and in exchange, pay funds to a smart contract in whichever cryptocurrency they prefer.
The smart contract collects ad revenue and then purchases LEO from one of the liquidity pools where LEO is listed. This LEO then enters the "System Income Rewards Pool (SIRP)". Currently, the SIRP is allocated to active LEO POWER holders who curate content.
Once the emissions rate of LEO drops below 4% (2033), the SIRP contract is designed to allocate rewards to the primary rewards pool. This means that the creators/curators on INLEO will begin earning from the SIRP along with the standard reward pool. As time passes, the inflation rate of LEO continues to drop and the SIRP share of rewards increases.
LeoPremium is a $10/month "Premium" plan that any INLEO user can subscribe to. They pay 10 HBD per month ($10 in stablecoin) to the LeoPremium contract. As a Premium member, they get access to an exclusive set of features.
The $10 per month is held in an on-chain account with the username @leopool. Once it reaches $500, the Premium contract buys $250 worth of HIVE and $250 worth of LEO using the $500 in stablecoins. It then wraps the HIVE to bHIVE and the LEO to bLEO and pools it as bLEO-bHIVE, creating permanently growing liquidity in that liquidity pool. Similar to LeoAds, the Premium System Income will migrate from deploying this liquidity to buying 100% LEO and deploying it to the SIRP pool in 2033.
LeoSubscriptions is a protocol we are building that operates like Substack. Authors can create a Subscriber-Only feed of long-form and short-form content. This subscriber-only feed can be accessed - as the name suggests - by subscribers to the author. The author can set the subscriber fee at $4.99 (for example) and collect stablecoins as payment from their userbase each month. The LeoSubscription contract collects the stablecoins, sends 95% to the author and 5% is kept as system income.
This system income operates the same as LeoPremium: buying 50% HIVE and 50% LEO and then pooling it as permanent liquidity on the bHIVE-bLEO Liquidity Pool. In 2033, this system income will join LeoAds and LeoPremium income in the SIRP to be paid out to creators/curators through the rewards pool.
LeoPromotions allows any user to promote a Thread or Blog Post to the top of various feeds. These promotions can be paid in LEO, HIVE or HBD. It's a competitive marketplace for promoting content and gaining more exposure on the platform. The rank higher, you pay more than the others using the promotion system. Promoted content is mixed into the feeds with other content. The System Income generated from Promotions does the same as LeoPremium and LeoSubscriptions - deployed as permanent liquidity until 2033, where it will then start to pay into the primary rewards pool.
System income is designed to replace LEO Inflation in the long-run. Starting in 2033, we'll see the SIRP deployed and an interesting KPI will be measuring the % of system income versus the inflationary rewards pool. How much rewards come from new token emissions versus system income buybacks to the SIRP pool? Beyond 2055, 100% of the Rewards Pool will be from System Income buying LEO and depositing it into the SIRP for Creators and Curators to earn.
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