The Leondrino Network

Brands (and their owners) want to invest into the next growth phase, seeking a financing vehicle that will not cause them to sell equity. The big advantages for an entertainment-related brand, for example, include:

• access to professional investors
• growth capital from fans and investors via Leondrino Exchange, without issuing equity
• market access in developing markets and capture of incremental clients (especially in countries with no traditional banking infrastructure but well-developed mobile telephone capabilities)
• full control over copyright and similar brand-related rights (in connection with intellectual property)
• advanced opportunities around loyalty management capabilities based on additional and superior client data points (especially for purchases via branded currencies)
• reinforcement of the brand value and fan relationship
•  

To be eligible for the issuance of Leondrino, a brand needs to display, among others,

• a minimum number of fans
• a minimum number of products and services that will be solely offered for purchases in Leondrino currency, as well as future commitments and services that will be used as collateral for the issuance of Leondrino
• pricing of any products and services in Leondrino

Once a brand has fulfilled these requirements, it is eligible to have its own Leondrino issued by Leondrino Exchange. The two parties sign a Leondrino contract (including process description) to prepare and formulate the details of the Initial Leondrino Offering (ILO). The brand will be able to influence the breadth of the fan engagement during the issuance and be able to influence the distribution and investor structure.

In general, a brand currency – like a fiat currency issued by a sovereign central bank – is subject to life cycle management. This life cycleis determined by the performance of the brand company associated with the currency, strict adherence to the monetary policy of the responsible issuer, and acceptance by consumers and investors.

In contrast to the cryptocurrency Bitcoin, whose maximum quantity is absolutely limited, Leondrino is pursuing a dynamic monetary policy defined by the number of the brand’s respective consumer base, business dynamics, and transactions for the highest token class A. The goal is to minimize volatility. As part of the approach, part of the fiat currency raised at ILO will be kept as a reserve. The expansion of the money supply and the buyback in the event of a price decline are controlled by software within certain limits. In the event of larger fluctuations, intervention by trained specialists on behalf of the Monetary Board of a corporate currency is envisaged.

If a brand ceases to exist, the associated currency will be taken from the market, once all collateral of this branded token has been liquidated and the proceeds from this collateral and the remaining excess cash reserves in fiat currency for the control of the money supply have been returned to the then remaining holders of the brand currency.
A brand currency is also delisted from Leondrino via a comparable process if both the reference value to a fiat currency (e.g. US dollar or euro) and the trading volume for this brand currency fall below a defined minimum value for a longer period of time.