It’s Happening! The Genesis Validators are coming!

LUKSO
LUKSO
Published in
9 min readApr 18, 2023

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LUKSO Landing: Part 3 of a 3 Article Series

⚠️ Be aware of scammers and phishing attacks. Please be sure to READ EVERYTHING and VERIFY DOMAINS, if you want to participate as a Genesis Validator check very carefully that the website is deposit.mainnet.lukso.network! ⚠️

The moment we have all been waiting for is finally here! We are excited to propose the LUKSO Mainnet start 🚀.

In Part 2, we shared a high level overview of the Mainnet start process. Since then, we have finalized key milestones and set up the Foundation for the New Creative Economies, also known as:

FNCΞ (pronounced: /ˈfæn.si/)

We are happy to announce that we will be launching the Genesis Validator Deposit Smart Contract on:

April 20th at 4:20pm UTC! 🪄💥⛓

This article outlines a joint proposal 🤝 by the Foundation for the New Creative Economies (Foundation / FNCΞ) — the Swiss foundation from Zug supporting the LUKSO ecosystem, and LUKSO Blockchain GmbH (LBG) — the German company that organized the Reversible ICO for LUKSO in 2020.

The Foundation in Zug, Switzerland, is an independent organization, separate from the German company. Their relationship is primarily based on the shared goal of developing and supporting the LUKSO ecosystem and its associated technologies and protocols.

Foundation for the New Creative Economies

On April 3rd and 4th, 2023 the Foundation had its first board meetings in which it signed a joint venture with LBG to propose the LUKSO Blockchain genesis setup. This was a significant milestone for the start of the network.

The Foundation has two primary objectives:

To cultivate and nurture a thriving ecosystem around the LUKSO Blockchain and related protocols.

To advance the development and research of the blockchain technology underpinning the LUKSO Blockchain and related protocols.

Additionally, the Foundation aims to provide support for the creation of innovative technologies that will benefit the social and creative economies.

Staking Restrictions🔒

Although the Foundation has no intention of actively participating in the consensus mechanism of the LUKSO Blockchain by staking LYX (the blockchain’s native token), the deed of the Foundation has a restrictive clause to prevent the Foundation from ever holding a controlling position as a validator on the network. This clause stipulates that the amount of LYX staked by the Foundation cannot exceed 30% of the total LYX staked in the overall network.

If other validators were to leave the LUKSO Blockchain and the Foundation’s staked LYX surpasses the 30% threshold, the Foundation is obligated to decrease its stake to ensure that it falls below the aforementioned threshold.

Reducing LYX Treasury ❄️🧊

The Foundation will introduce a Freeze Smart Contract on the LUKSO Blockchain, which will receive 70% of all LYX the Foundation holds at that point in time (excluding the 1M LYX reserved for user subsidization) if the circulating market cap of LYX exceeds a mean value of 2 billion EUR over the last six months.

The smart contract will then gradually freeze 🧊 the amount of LYX in it over a period of 5 years, effectively removing them from the overall supply and rendering them not spendable by the Foundation or anyone else.

If the Foundation board deems it necessary, it can withdraw up to 10% of the remaining available LYX in the smart contract. However, such withdrawals can only occur once every three months, after the creation of the freeze smart contract or last withdrawal. Based on our calculations, the maximum amount the Foundation would be able to withdraw from the freeze smart contract is 44.5% of the LYX that was initially placed into the smart contract over a period of 3 years if withdrawals are made every 3 months (thus the minimum amount frozen is 55.5%). This smart contract ensures any excess tokens that the Foundation does not need to fund the ecosystem will be removed from the overall supply.

The Network Proposal 📜

The LUKSO Team, consisting of the Foundation and LBG, proposes three options for the initial total supply of LYX which the Genesis Validators will choose from. Keep in mind, anyone can become a Genesis Validator, as long as they have at least 32 LYXe.

As the LUKSO Blockchain is born 👶 out of Ethereum, with the Genesis Validator Smart Contract being on Ethereum Mainnet, only LYXe can be used to become a Genesis Validator.

For context, “LYXe” is the representation of LYX on the Ethereum blockchain. LYXe were released by the project’s Reversible ICO. Once the Mainnet launches and has been stably running for around a month (Discovery Month), there will be a migration process of LYXe to LYX. Genesis Validators will have LYX directly when the network starts as a stake in the consensus layer of the network. The LYXe in the Genesis Validator Smart Contract will be forever locked and a testament of LUKSOs birth 🌅.

Should the community feel that another distribution is preferable, Genesis Validators are able to edit the genesis.json file and make any edits they wish. Keep in mind that for a stable network to form, most of the Genesis Validators should have the same genesis.ssz and genesis.json.

NOTE: If the community decides to alter the receiving addresses or their relative distribution in a way that makes it difficult or impossible for the LUKSO Team to support the LUKSO Blockchain and its development over time, or for the LBG to fulfil its obligations towards private sale or Reversible ICO participants, the LUKSO Team will reserve the right to distance itself from the network that will result from this decision and suggest another network start.

The Genesis Addresses 🖇️

The Genesis file (genesis.json) that contains the initial network balances will contain two addresses with LYX balances.

These two addresses are:

Foundation for the New Creative Economies (Foundation):

0x953534215D31D0f2756b8A855aaFB7E641848c2e

LUKSO Blockchain GmbH (LBG):

0x5a4154edddE64858664F6219e031B6a47BA30993

Most of the LYX will be allocated to the address of LBG, since that entity is responsible for:

  • The LYXe migration (15,575,916 LYX)
  • EDIT: LYXe migration is reduced by -330,752 LYX, as this is the amount of LYXe locked in the Genesis Deposit Freeze Contract, which will be the balance for validators from network start, and doesn’t need to be migrated anymore
  • Seed Sale (4,695,000 LYX)
  • Private Sale #1 (5,089,264 LYX)
  • Private Sale #2 (2,049,802 LYX)
  • Advisors (1,240,000 LYX)
  • Initial Grants (206,500 LYX)
  • Future development by LBG (2,000,000 LYX)

Total: 30,525,730 LYX

Genesis Validators will be able to vote on the following three proposals for the initial LYX supply, which will also determine the amount the Foundation receives:

Option I: Minimum Acceptable Supply

35,000,000 LYX

The minimum supply proposed is 35,000,000 LYX. This value places us in a highly decentralized distribution from the get-go, but it would limit the LUKSO Team’s resources for things such as grants and initial user subsidization.

In this option the Foundation would receive 4,143,518 LYX (11.8% of the initial supply).

Option II: Recommended by the LUKSO Team

42,000,000 LYX

This is the preferred initial token supply suggested by the LUKSO Team, which would provide enough funds to support the ecosystem for a long time, subsidize early users, issue grants, and support development.

In this option the Foundation would receive 11,143,518 LYX (26.5% of the initial supply).

Option III: Initial Supply

100,000,000 LYX

This was the initial LYX supply proposed in 2019. At that time, the market size, conditions, and expected timeline of launching the LUKSO Mainnet looked different. This option is here as LBG proposed it in 2019, but we do not recommend it, as it increases centralization.

In this option the Foundation would receive 69,143,518 LYX (69.1% of the initial supply).

The Genesis Validator Deposit Smart Contract 📄

LUKSO is NOT delegated proof-of-stake, where the staking participants hand that responsibility to a centralized third party. It is YOUR responsibility to run the network when you become a (genesis) validator.

In Part 2, we explained how LUKSO is a network based on Ethereum’s technology. Unlike Ethereum, LUKSO will start directly as a Proof-of-Stake Blockchain with an Initial Genesis Validator Set that anyone can join using the Genesis Validator Deposit Smart Contract on the Ethereum Blockchain.

As Ethereum was born out of Bitcoin, by generating the Ethereum genesis block from the Ethereum ICO transactions on Bitcoin — LUKSO will be born out of Ethereum, by collecting the Genesis Validators from Ethereum.

The Start 🚀

On April 20th 4:20pm UTC, the Genesis Validator Deposit Smart Contract on Ethereum, at address

0x42000421dd80D1e90E56E87e6eE18D7770b9F8cC

will open 🆙 and allow LYXe and validator key data to be deposited.

The LUKSO Blockchain will need at least 4,096 validator keys to start safely.

Once we see enough validator keys (ideally 10k+), we will trigger the Genesis Validator smart contract freeze, which will take another week until finally frozen, to allow any last comers to join.

This smart contract will allow anyone to deposit
one validator key with every 32 LYXe that are sent using the deposit website:

👉 deposit.mainnet.lukso.network 👈

When you generate your validator keys, make sure to choose the network “LUKSO” in the LUKSO Wagyu Key Generator GUI, or use the “lukso” flag in LUKSO key-generator CLI.

The LUKSO Wagyu Key Generator GUI allows you to generate your validator keys

The Indicative Vote 🗳️

Alongside every genesis validator key you can provide an indicative vote with your transaction. This indicative vote will allow the community to see what other genesis validators prefer as the initial LYX supply.

When you run the network later, you will be able to select the genesis files with the actual initial supply you want the network to start. So this is an indicative vote, not the final execution!

All the validator keys that are deposited to this smart contract will make up the Genesis Validator set of the LUKSO Blockchain. After the Genesis Deposit Smart Contract is frozen, the community will launch the LUKSO Blockchain approximately a week later and the Discovery Month will begin!

Becoming a Genesis Validator 🔑🔑🔑

NOTE: This process will require you to run a full LUKSO Blockchain node using your computer terminal (Mac or Unix) later. Only do this when you are capable of doing so. Not running your clients properly can harm the network and put your staked LYX at risk!

Running a validator will become easier in the future with the support of Dappnode and other staking providers.

To become a Genesis Validator you will need to run a node when the network starts. To Deposit your validator keys follow the steps in the deposit website: 👉 deposit.mainnet.lukso.network 👈 .

Be sure to read everything carefully and to verify the domain and link you are using!

https://deposit.mainnet.lukso.network

⚠️ DO NOT USE ANY OTHER WEBSITE ⚠️ other than the following to deposit your LYXe:

OFFICIAL LUKSO GENESIS DEPOSIT website:

https://deposit.mainnet.lukso.network

Smart contract address on Ethereum:

0x42000421dd80D1e90E56E87e6eE18D7770b9F8cC

⚠️ Be aware of scammers and phishing attacks, ALWAYS ensure you only access the official LUKSO domain: https://deposit.mainnet.lukso.network ⚠️

The Process After the Genesis Validator Deposits

The next step after the Genesis Validator Deposit Smart contract is frozen, is the actual start of the Network!

Get your machines ready, as we will release the official network configurations and the LUKSO Command Line Interface (CLI) soon™️!

Timeline

What about the Testnet?

The official Testnet will start within the coming weeks, before the Genesis Validator Deposit Smart Contract is frozen. This will allow you to test your machines and the LUKSO CLI! Please follow LUKSO on Twitter and keep an eye on the Dev-Announcement Channel in our Discord for updates.

We aim to develop technology that can facilitate novel forms of creative exchange and foster an ecosystem of new users and use cases. Achieving this ambitious objective requires time, work and YOU!

We express deep gratitude to the community for their patience during this long period of immense progress ❤️🙏.

We welcome you all to join our Discord to explore the development channels and join the community.

We are looking forward to building the future together. 🌈 🛖🛖🛖 🤝

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LUKSO
LUKSO

The Blockchain for New Creative Economies