FAQs: Our Tokenomics
Understanding the Power of LITH
Tokens can be used to invest, store value while cryptocurrencies enable its users to make purchases and facilitate transactions along the blockchain. The LITH token brings the best of both worlds and more. Read on to find out how we use LITH to reward our participants and incentivize our Price Experts below.
What is the LITH token? What is its utility?
LITH is Lithium’s native token, from which all rewards and staking will be denominated within the ecosystem.Two parties can maximize the utility of LITH, namely the Price Seekers and Price Experts when participating within the ecosystem. Price Seekers post a bounty offer into the reward pool upon submitting their Pricing Quests on their interested illiquid assets. When Price Experts respond to the Pricing Quests, they stake LITH to signal their confidence in their Price Estimates and receive LITH as reward according to the accuracy of their Price Estimates.You can perceive LITH as essentially the key to access a hub where users gather to exchange collective intelligence. It is where they will always be incentivized to keep the economy robust in the service of the common good.
What is a Reputation Token (RP Token)?
The Reputation Token refers to Reputation Token (RP Token), reputation scores held by Price Experts to signal their reputational capital. RP Tokens are not transferable and can only be earned. They are used as a weighting factor for Lithium’s pricing mechanism through RP Token Staking.Our pricing mechanism integrates users track record and reputation in determining pricing output. RP Tokens held by Price Experts are adjusted according to their performance and contribution to accurate pricing information.
About Lithium Finance
Lithium Finance is the first decentralized asset pricing mechanism powered by collective intelligence. We bring market participants together to estimate pricing for illiquid assets on demand.