LSP is a reward and governance asset which has a major role in keeping the Lumenswap ecosystem cycle dynamic and decentralized.
1,000,000,000 LSP asset (fixed) have been minted at the genesis and will be vested over the course of 10 years.
Asset issuer: GAB7STHVD…MKDM24WK
Asset code: LSP
Asset type: credit_alphanum4
Note: We have enabled the Immutable flag for LSP, which means that the asset issuer (Lumenswap team) has no control over the asset and the holders have their own control. Our reason for handing over total control was that Lumenswap is a decentralized project by nature and developers must have no influence over assets. Read more about accounts flags: https://developers.stellar.org/docs/glossary/accounts/#flags
40% Ecosystem Rewards
12% Community public sale
LSP asset circulation schedule
Note: We have planned an auction for the public sale in the Lumenswap spot client (IDO). We will announce more details in the coming weeks.
To establish transparency in the way assets are unlocked according to the plan we announced, we put them in different addresses so that you can follow their distribution process.
Public sale account: GA6N5CBQ…FX56B72D
Team account: GB6OM72C…MV5XLD4I
Advisor account: GDTSM26B…HXW5WIUM
Ecosystem rewards account: GDDD65VO…GSZE6BBY
Marketing account: GCYN3F4D…5J266YLJ
Foundation account: GCLQTGIH…J2EODJH3
For a number of reasons, a crypto exchange may create its own asset, and exchange owners frequently distribute assets to users as incentives. Most exchange assets are meant to enhance an exchange’s liquidity, reward trading activity, or make the exchange’s community governance process easier. Let’s take a deeper look on the process:
In a financial market, liquidity refers to the availability of trading activity that can be depended on. Markets with greater liquidity run more smoothly, and assets with greater liquidity may be traded more readily without significant price changes or slippage. Crypto exchanges can utilize native assets to motivate market makers in the absence of traditional market makers by giving incentives proportionally to their overall trading volume or through specified staking programs.
Not all cryptocurrency exchange assets are intended to be used as a bonus for platform users. Several crypto exchanges have released native assets as a governance tool for the exchange’s future development. While this use case is less frequent than others, decentralized exchange assets have become an increasingly significant goal for DEXs looking to migrate to completely community-run operations.
1. Rewards for LSP Holders
We’ve allocated 25% of our assets to rewarding LSP Asset holders (which is also known as “staking”). The Lumenswap team will take a snapshot of all LSP owners on a random day of each month and it’ll distribute about 2,000,000 LSP based on the number of assets they had at the time.
Note: You must own more than 10,000 LSP in order to be qualified for this reward.
Note: This program will continue for ten years.
2. Rewards for LSP Traders
We’ve allocated 15% of our assets for LSP traders to encourage LSP traders and incentivize LSP trading.
At the end of each month, the Lumenswap team will record all of the addresses that have traded LSP that month. A hundred of them will be selected at random and rewarded 12,500 LSP which means a total of 1,250,000 LSP will be rewarded each month.
Note: Your total number of traded LSP assets should be more than 10,000 LSP in order for you to be qualified for this reward.
Because we are moving towards a goal that has already been set — decentralization and transparency — we will use the governance model for future Lumenswap decisions.
Note: The governance implementation process and its rules will be announced in detail later in an article.