What is KYC and why is this verification required? KYC is the...Read More
Leondrino is the new type of digital currency, which combines the benefits of money supply control by central banks and the technological advantages of digital currencies, including crypto currencies, while avoiding the disadvantages as possible. Compared to other digital currencies, Leondrino are backed by the current and projected business of the respective brand via the obligation of the brand to accept its branded Leondrino for its products and services.
The money supply of each branded currency will be based on the unique monetary policy that is coordinated with the brand and clearly communicated to all those branded currency participants. It is not intended to change the fundamentals of the individual monetary policy after the initial agreement between Leondrino Exchange and the related brand. With these measures, Leondrino Exchange will create currencies that
- have a limited volatility,
- are recoverable in relation to a brand and
- can be used globally for products under a brand umbrella.
Fans want to support their brand and be rewarded in return for their loyalty and sharing transaction data. The main advantages for fans and consumers include:
- high-profile and exclusive offers
- individual discounts and benefits (dynamic pricing) at the point-of-sale for in-person and on-line purchases based on transaction history
- potential value increase of stored Leondrino currency
A user can earn Bonus Leondrino by successfully inviting his friends to join Leondrino. For each successfully invited friend, the user gets a predefined number of Bonus Leondrino according to the valid promotional campaign at that time.
Bonus Leondrino can be converted into any kind of branded Leondrino Currency at the valid exchange rate on the exercise date.
Paying with Leondrino is easy.
In online shops, Leondrino will be offered as an additional payment method you can select at checkout and then authorize the payment via your Leondrino Wallet. Done!
At Point-of-Sale in shops and restaurants you identify yourself as Leondrino User. Merchant just need to scan your personal Leondrino QR-Code and then trigger a payment request that you then authorize via your Leondrino Wallet. That’s it!
The Leondrino Wallet is able to handle a variety of branded currencies. The wallet can be linked to both checking accounts as well as market places.
For more convenience, individual rules for the use of currencies and reference accounts for currency exchange can be specified in the user settings if there is insufficient money on the desired Leondrino account.
A Leondrino Currency of a particular brand can only be used if the associated brand had its Initial Token Sale and already offers its products and sevices in exchange for their own branded currency. Early adopters and particularly loyal users are entitled to advantages in advance of the introduction – usually before the switch from Leondrino tokens to Leondrino coins (see also article: What is the Leondrino Lifecycle?). Most of the brands give out Leondrino tokens (vouchers) beforehand that can be used during the pre-ILO phase for purchases of products and services of the corresponding brand.
Leondrino Currencies -same as fiat currencies of sovereign central banks- are subject to lifecycle management. The standard lifecycle of a Leondrino Currency includes certain phases and events that are the same for all Leondrino Currencies, but may vary in duration and time depending on the performance of the associated brand.
The first phase, called Stealth Phase, is used as a market test phase. Early adopters can express their interest in a branded currency of their favorite brands by setting up an account related to the desired brand in their Leondrino Wallet. Tokens of that phase belong to Token Class E and arnot covered neither by the brand nor by Leondrino Exchange and the distribution of such tokens is limited per user.
The second phase, called Initial Consumer Engagement Phase, is used to get consumers initially engaged with the brand’s intention of its future branded currency. During that phase, brands distribute a limited number of Leondrino Tokens to its loyal users as an incentive. Leondrino Tokens are only backed by contractual promise of the associated brand for future benefits dependent on loyal behavior of its owners. There are no other securities and trade is still not possible. But with the sales start, the Initial Token Offering (ITO), consumers can buy a limited number of Leondrino Tokens and benefit from special marketing events during the Initial Consumer Engagement Phase where consumers are rewarded for the initial contribution to the success of the brand. Because early contribution does have more value than later contribution, the factor value will decline over time.
The third phase is called Seed Circular Economy. It starts with the Initial Coin Offering (ICO), where Leondrino Tokens switch into Leondrino Coins. This phase is characterized by the fact that restricted trade within Leondrino Exchange’s ecosystem (LEX ecosystem) is now possible. Buying branded coins using national currencies is allowed, but limited in volume per user and volume per transaction. Depending on the owned volume per person, KYC rules will be applied and enforced. Leondrino Coins can be used to purchase initial goods and services of the associated brand based on a restricted catalog of the brand.
The Growth Circular Economy is the fourth phase and differs from the previous phase mainly because the volume limit hold by one owner goes up and trade limits will be reduced. Leondrino Coins are exchangeable for national currencies based on the exchange rate within the LEX ecosystem (internal and accredited external exchanges) but trade is still restricted. Leondrino Coins can be used to purchase a widened offering of goods and services of the associated brand.
With the Initial Public Leondrino Offering (ILO), that is procedurally comparable to a traditional Initial Public Offering (IPO) on a stock exchange, the fifth phase, called Post ILO Phase, starts. This phase is characterized by the fact that the present Leondrino Coins switch into the Leondrino Currency that can now publicly be traded. The money supply of the Leondrino Currency is actively managed by the LEX Algorithm and the monetary board of that specific branded currency following the predefined monetary policy agreed between Leondrino Exchange and the brand. The Leondrino Currency is exchangeable with national currencies based on a market based exchange rate and can be used to purchase all products, goods and services of the associated brand.
During the Post ILO phase, there are still some restriction regarding volume of transactions for big investors (e.g. rules for market makers) and an extra degree of intervention opportunities for Leondrino Exchange than during the next phase. Those rules are necessary to give the management of the currency supply the tools to avoid extreme volatility.
The last phase is the steady state of a public traded Leondrino Currency with an active supply management and is called Sustainable Circular Economy. Now high regulated institutional investors like insurance companies and pension funds can join.
An Exit or a Delisting can happen for the following reasons: If a brand ceases to exist (see also article: What happens if a brand that previously issued Leondrino ceases to exist?) or because of low performance of the currency (valuation and transaction volume) over a defined period of time.
A branded currency -same as fiat currencies of sovereign central banks- is subject to life cycle management. This life cycle is characterized by the power and potential of the associated brand, the strict monetary policy for the respective Leondrino, the consumer acceptance and investor interest.
Compared to BitCoin, whose maximum quantity is absolute limited, Leondrino is pursuing a dynamic monetary policy defined by the number of the brand’s respective consumer base, business dynamics and transactions. The goal is to minimize unwelcome volatility. As part of the approach, a part of the fiat currency raised at ILO will be kept as a reserve. This reserve will be, within defined boundaries, increased or decreased automatically (based on the Leondrino algorithm). In case of strong volatility, an intervention of designated market experts is scheduled.
If a brand ceases to exist, the associated currency will be taken from the market, once all collateral has been liquidated, all fiat currency reserves have been returned to the Leondrino holders. The delisting of a branded currency at Leondrino Exchange via a comparable process happens even if both the reference value to the fiat currency US Dollar and the trading volume of this branded currency drop below a defined minimum value for extended periods.
Leondrino currencies are designed to become a standard for stable currencies of enterprises and to serve as medium of exchange for products and services of brands. The benefit of sharing transaction data and loyal consumer behavior is fairly distributed between consumers and brands.
If you use a branded token to pay for goods and services of the associated brand you share your transaction data with the brand. With that information about your loyal behavior, the brand can give you a personal brand experience and present you not only tailored offers but also allow you discounts according to your transaction frequency and volume. Meaning, the more you consume and pay with the branded token, the more discount you get.
KYC is the abbreviation of Know Your Customer/Know Your Client. Due to anti-money laundering and counter terroris financing regulations, we are required to perform a KYC check for all Leondrino users who want to use and/or invest in branded tokens (Leondrino currencies).
The Leondrino team and the brand companies behind the Leondrino currencies need to check each investor’s identity to ensure that we comply with anti-money laundering and counter terrorist financing regulations.
Depending on the token class of the token and the amount of tokens you wish to purchase as well as how you want to use the branded tokens (for paying for goods and services or as a pure investment), you must provide certain required information during your KYC check.
During a KYC Light check, you need to provide your full name and address details as well as your phone number and date of birth. You can do so by filling your data in the Leondrino Profile page of your Leondrino user account.
During a KYC ID check, you need to provide a valid government-issued ID in addition to the data requested during KYC Light check. Your government-issued ID must not be expired and must have your photograph on it.
In some cases, a KYC Video ID check may be necessary.
If you are a US citizen, you may only participate in a token sale if you provide proof of being a so-called Accredited Private Investor, as defined in Rule 501 of Regulation D issued under the Securities Act of 1933. To prove this, it is sufficient to fill out the form provided in the KYC process, namely ACCREDITED INVESTOR CERTIFICATION, and sign it, let your own tax adviser confirm it and then upload this document within your Leondrino Wallet. Done.
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