An Update on Lumerin (LMR) Tokenomics
Positioning the Lumerin platform for long-term growth and sustainability
The Lumerin Vision
Lumerin is building a decentralized data routing protocol that will enable new, innovative applications never seen before. One of those applications is decentralized hashpower trading through a Hashpower Marketplace — which is currently available in beta on Ropsten testnet.
Web and general communications are dependent on centralized servers for routing information and connection proxying. Lumerin’s vision is to decentralize the global data stream routing layer, allowing new types of information to be shared and used on a blockchain network. Essentially, any asset that can be transferred through TCP/IP protocols will be deliverable through the Lumerin Protocol in a decentralized, secure, and peer-to-peer manner.
We are starting with Bitcoin and proof-of-work hashpower, aiming for optimization and decentralization of the mining process — and we can only do that 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 for buying and selling hashrate contracts and, eventually, pay gas fees on the Lumerin Protocol.
Read on for an overview of Lumerin’s tokenomics strategy.
Please note, this is an updated model of Lumerin’s tokenomics that was previously released. Adjustments were made following the Public Sale to properly reallocate unsold tokens.
Lumerin (LMR) Overview
LMR Supply Distribution
The Lumerin token is set to be distributed in a way that rewards active members of the community and token holders, ensuring a healthy growth of the Lumerin ecosystem and incentivizing participation in community events and open-source development.
New tokens entering circulation will come from community programs and incentives, mineable rewards, and the release of vested tokens across the different tranches: Community, Mineable, Seed, Private, Public, and Core Team — this last one with the slowest unlocking schedule.
The total supply of LMR is hard-capped at 1 Billion. This ensures that LMR can endure and accommodate widespread adoption, facilitating user experience and ensuring token accessibility.
Token Distribution At-a-Glance
- 27.4% of LMR was sold across different sales rounds and will be released according to their respective vesting periods (see “Token Lockups and Vesting Periods” section).
- 25% of LMR tokens are allocated to the Lumerin Treasury under strict lockups and vesting conditions.
- 25% of LMR tokens are mineable and released over the course of ten years.
- 22.6% of LMR tokens are dedicated to community and development incentives.
- These last two tranches make up 47.6% of LMR tokens, and are dedicated to incentivizing Lumerin’s growth and adoption.
Token Lockups and Vesting Periods
In order to ensure healthy and sustainable growth, we’ve implemented two different periods for token releases:
- Lock-up periods: During this time, tokens will remain locked, unavailable, and out of circulation.
- Vesting periods: Vesting refers to an extent of time in which users will gradually receive their tokens through regular-interval releases of equal proportions.
Example: Let’s look at the Core Team tranche:
- 0.35% release at launch.
- 6 month lock-up period.
- 24 month vesting period.
This means the Core Team will have access to 0.35% of their LMR immediately. 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 start gradually unlocking, becoming fully accessible after 2 years (24 months).
You can find the details of the lock-up and vesting periods of every tranche in the table below:
Unsold tokens from the Lumerin Public Sale were reallocated to the Community tranche. We made this decision to make sure that those LMR remain in the hands of the Lumerin community.
Circulating Supply Schedule
Monthly injections in circulating supply will help to ensure a constant yet controlled increase in LMR inventory to accompany growing demand and user-base, as well as the utilization of the Lumerin Hashpower Marketplace, which will be fully functional in the coming months.
Supply will continue to increase over ten years, reaching full dilution in December 2032. Emissions will decelerate month after month, aiming to mitigate any inflationary impact.
Looking Ahead
The Lumerin Protocol was founded with the goal of becoming a fully decentralized, community-led project. Community input is critical as we scale Lumerin and advance toward decentralization.
The long-term future of Lumerin is bright. The first use case for LMR is hashpower trading on the Lumerin Hashpower Marketplace and we’re already working on further utility for the token — including our own Lumerin blockchain network that will enable 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 on Telegram and Discord to help shape the future of Lumerin.
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Lumerin is an open-source and community-driven project. As such, we invite everyone to join the community and build this ecosystem together. You can also access valuable content, engage in interesting conversations, and meet like-minded people through our social channels:
