Positioning the Lumerin Platform for Long-Term Growth and Sustainability
Lumerin is building a decentralized data routing protocol that will enable innovative new applications never seen before. One such application is decentralized hashpower trading via a Hashpower Marketplace – which is currently available in beta on Ropsten testnet.
Web and general communications depend on centralized servers for information routing and connection proxying. Lumerin’s vision is to decentralize the global routing layer of data flows, allowing new types of information to be shared and used on a blockchain network. Essentially, any asset that can be transferred over TCP/IP protocols will be deliverable over the Lumerin protocol in a decentralized, secure, peer-to-peer manner.
We start with Bitcoin and the hashing power of proof of work, aiming for the optimization and decentralization of the mining process – and we can only do this if we ensure a sustainable tokenomics model.
The Lumerin Token (LMR) is a central part of this ecosystem, as it will act as a transactional utility token to buy and sell hashrate contracts and eventually pay gas fees on the Lumerin protocol.
Read on for an overview of Lumerin’s Tokenomics strategy.
Please note that this is an updated model from Lumerin’s tokenomics that was previously released. Adjustments have been made following the Public Sale to properly reallocate unsold tokens.
Introducing Lumerin (LMR)
The Lumerin token should be distributed in a way that rewards active community members and token holders, ensuring healthy growth of the Lumerin ecosystem and encouraging participation in community events and open source development.
The new tokens entering circulation will come from community programs and incentives, mineable rewards, and the release of earned tokens in the different tranches: community, mineable, seed, private, public, and core team – the latter with the unlock schedule. the slowest.
The total supply of LMR is capped at 1 billion. This ensures that LMR can support and scale for widespread adoption, easing user experience and ensuring token accessibility.
- 27.4% of LMRs have been sold in different rounds of sales and will be released according to their respective vesting periods (see “Token Locks and Vesting Periods” section).
- 25% LMR tokens are awarded to the core team under strict lock-in and vesting conditions.
- 25% LMR tokens are mineable and released over a period of ten years.
- 22.6% LMR tokens are dedicated to community and development incentives.
- These last two sections constitute 47.6% of LMR tokens, and are dedicated to encouraging the growth and adoption of Lumerin.
In order to ensure healthy and sustainable growth, we have implemented two different periods for token launches:
- Blocking periods: During this time, the tokens will remain locked, unavailable and out of circulation.
- Vesting periods: Vesting refers to a period of time during which users will gradually receive their tokens through releases at regular intervals of equal proportions.
Example: let’s look at it Core team slice:
- 0.35% release at launch.
- Blocking period of 6 months.
- Vesting period of 24 months.
This means that the core team will immediately have access to 0.35% of their LMR. For the next 6 months, their tokens will remain locked and unavailable. After the seventh month, the remaining 99.65% of the Core Team tokens will begin to unlock gradually, becoming fully accessible after 2 years (24 months).
You will find the details of the lock-up and vesting periods for each tranche in the table below:
Unsold tokens from the Lumerin Public Sale have been reallocated to the community tranche. We made this decision to ensure that these MRLs remain in the hands of the Lumerin community.
Monthly injections into the circulating food will ensure a constant but controlled increase in the MRL stock to support the growing demand and user base, as well as the use of the Lumerin Hashpower Marketplace, which will be fully functional in the coming months.
Supply will continue to rise over ten years, reaching its full dilution in December 2032. Issuance will slow month by month, in an effort to mitigate any inflationary impact.
View full token release schedule.
The Lumerin Protocol was founded with the goal of becoming a fully decentralized, community-driven project. Community input is essential as we evolve Lumerin and move towards decentralization.
The long-term future of Lumerin is promising. The first use case for LMR is hashpower trading on the Lumerin Hashpower Marketplace and we are already working on other uses for the token, including our own Lumerin blockchain network which will allow the community to deploy their own dApps and smart contracts powered by LMR.
You can learn more about Lumerin and how it works here:
Come join the conversation at Telegram and Discord to help shape the future of Lumerin.