As we approach the roll-out of our trading platform to the public and as the LGO token migration has successfully been executed, we have finalized the LGO token economics. We believe these economics will satisfy our community of token holders, incentivize them to hold our token, and reinforce the long lasting development of LGO as a whole.
Our token economics will be explained below in two folds, the first one being the token buy-back & burn, and the second one being the fee schedule.
Token buy-back and burn
Whether the trading fees are paid in LGO or in other currencies, 25% will be used to burn LGOs.
Trading fees collected in LGO token:
- 25% of equivalent net fees collected will be burnt via the burn() function which which has been implemented on the new LGO smart contract.
Trading fees collected in other currencies:
- 25% of equivalent net fees collected will be used to buy-back LGOs through a fair and transparent mechanism.
- The LGOs bought back will be burnt via the burn() function on the new LGO smart contract.
The number and/or USD equivalent of tokens burned will be disclosed. As part of their annual review, our external auditors will review the burning activity that has occurred throughout the year.
When will the burn and buy back be implemented?
Phase 1: LGO token not listed on LGO (Current phase)
We are currently computing the amount of LGO tokens to buy-back and will implement the burn once the LGO token is listed on the platform. We will communicate the number and/or USD equivalent of tokens to burn.
Phase 2: LGO token listed on LGO but buy-back mechanism not implemented
Buy-backs will be processed monthly at first, through randomly scheduled market orders.
Phase 3: LGO token listed on LGO and buy-back mechanism implemented
Once the buyback mechanism is implemented, buy-backs will occur on a weekly basis.
Holding LGO tokens on the LGO Trading Platform allows a trader to access lower fee brackets. The number of LGO tokens held is computed based on the exchange balance of the trader. The schedule will start operating in Q4 2019. The official date will be announced at a future date.
LGO has built and delivered a trading platform for digital assets with proprietary technology which is provably transparent, non-custodial and secure. The firm currently offers BTC / USD with additional pairs and currencies to be added in the future.