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.