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.
Brief Overview and Chronology of Standard Leondrino Lifecycle:
The Phases and Events in Detail:
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.