LUMIA Token
Introduction
As Lumia evolves to become a leading chain for Real World Assets (RWA) and decentralized finance (DeFi), we are introducing a new native token: LUMIA.
Token Swap
This section outlines the token swap process from the existing Orion Protocol token (ORN) to LUMIA and explains the crucial role LUMIA will play in the Lumia L2 ecosystem.
Swap Ratio: 1:1 (1 ORN = 1 LUMIA)
Process: For each ORN token burned, holders will receive 1 LUMIA token
Eligibility: All current ORN token holders
Why We're Transitioning to LUMIA
The transition from ORN to LUMIA represents more than just a name change. It signifies the evolution of our project and the expansion of our ecosystem. LUMIA is designed to be the cornerstone of the Lumia network, offering enhanced utility and aligning with our vision for a comprehensive RWA and DeFi platform which will leverage its unique technology to create the ultimate home for open finance.
LUMIA Token Utility
LUMIA will serve multiple critical functions within the Lumia ecosystem:
Native Gas Token: LUMIA will be used to pay for transaction fees on the Lumia L2 network, ensuring efficient and cost-effective operations. The chain itself inherits EIP
Governance: LUMIA token holders will have the power to participate in certain decision-making processes for the Lumia software platform only, voting on key protocol upgrades and parameter changes. By locking up LUMIA tokens, users can obtain veLUMIA (vote-escrowed LUMIA), which allows expanded participation and can award potential reward boosters.
Node Staking: LUMIA will be used for staking in network nodes, allowing token holders to contribute to network security and earn rewards.
Liquidity Provision: LUMIA tokens can of course be used in liquidity pools across the Lumia ecosystem, allowing active participation in the network's overall liquidity provision mechanisms which may incur in extra pool rewards and further advantages.
Access to Premium Features: Holding LUMIA may grant access to premium features or reduced fees on the Lumia network as well future partners and ecosystem airdrops.
Importance of LUMIA in the Lumia Ecosystem
Aligned Incentives: By serving as both the gas token and as a general utility token with platform governance elements, LUMIA aligns the interests of users, developers, and network participants.
Economic Security: LUMIA's role in node staking enhances the economic security of the Lumia network.
Ecosystem Growth: The multi-faceted utility of LUMIA encourages long-term holding and active participation in the ecosystem.
RWA Integration: LUMIA will indirectly play a crucial role in the future integration and trading of tokenized Real-World Assets on the platform, as a potential unit of exchange within it.
Interoperability: As the native token of Lumia, LUMIA will be at the center of cross-chain operations and liquidity provision.
Tokenomics
Current ORN token supply: 92,631,255
New LUMIA token supply: 238,888,888
Token supply increase: 146,257,633
Supply Increase Explained
The original ORN tokenomics were designed in 2018 to tailor the needs of the original scope of Orion, the first and only trading platform aggregating both centralized and decentralized liquidity in a decentralized manner. This was achieved successfully by the 2020 main net launch of Orion Terminal. Since then, the landscape has significantly changed in terms of how tokens are allocated and the necessary initiatives that are required to allow a healthy token economy to thrive.
With our shift in scope that is now Lumia - the first ever hyper-liquid Layer 2 rollup designed to provide deep-liquidity to Real-World Assets (RWAs), we face the need to develop sufficient tokenomics that will assure the longevity and stability of our vision. There are several reasons that the changes in tokenomics are essential to the short and long term growth of the Lumia ecosystem.
Firstly, the node operators that are essential for decentralizing Lumia L2 that also bolster the liquidity network of Lumia Stream receive daily rewards for their efforts. The tokens that are eligible for being distributed are factored into this number.
Secondly, we’ll be conducting several community initiatives such as airdrops, grants, and other methods that are common for L2s to attract and acquire builders/users. Without such initiatives, we put ourselves at a major disadvantage compared to other successful L2s in the industry, many of which have entirely new token supply - making it impossible for Lumia to compete and thrive long term.
As we keep the community and our token holders first, it is important to transparently and responsibly allocate the added supply - therefore we take pride in ensuring that 100% of the new supply is allocated to node rewards, community rewards, airdrops, and other community building incentives. 0% is allocated to the team.
This new token supply is vested over 20 years
Fundamental Necessities for the Change in Tokenomics
1. Building the Ecosystem:
As Lumia evolves from a trading terminal to a comprehensive Layer 2 solution with our liquidity protocol, increasing the token supply is key to kickstarting our ecosystem. Layer 2 networks need strong incentives to draw in users, developers, and liquidity providers. More tokens will help:
Provide airdrops to early users and those on integrated chains
Fund grants for developers working on Lumia L2
Set up liquidity mining programs to boost liquidity in DeFi protocols
Reward node operators, validators, and sequencers for decentralizing our layer 2
These steps are essential for creating a thriving L2 ecosystem, which is vital for our long-term success and widespread adoption.
2. Liquidity Node Operations:
The Lumia Stream feature, which consolidates liquidity from both CEX and DEX sources, requires more tokens to:
Reward Liquidity Node operators
Offer incentives for LUMIA holders who delegate to these nodes
Build deep liquidity pools within Lumia L2 to enhance capital efficiency
The increased supply will reward those that help Lumia to achieve deep liquidity across various chains and trading pairs.
3. Sustainable Gas Fees:
LUMIA tokens will be used for transaction fees and gas costs on L2. An increase in supply will:
Allow for more flexible fee structures, including micro-transactions
Support sustainable fee models that can handle increased network usage without driving up costs too quickly
Implement a token burning mechanism to gradually reduce the total supply over time as activity on our L2 grows and gas fees accumulate
4. Governance and Staking:
The expanded tokenomics will strengthen our governance model by:
Creating larger staking pools for governance
Rewarding active voters to keep the community engaged
Distributing tokens more widely for more decentralized decision-making
5. Cross-Chain Interoperability:
Lumia L2's commitment to cross-chain integration with our partners Polygon AggLayer, Hyperlane, and Connext requires additional tokens for:
Providing liquidity for cross-chain bridges
Incentivizing relayers and bridge operators
6. Long-Term Sustainability:
The new tokens will be released for as long as a 20-year period, ensuring:
A gradual introduction to avoid flooding the market, ensuring a healthy environment for our token holders and community
Alignment of incentives for long-term participants to properly scale our L2 to be in business for decades to come
Flexibility to adapt to market changes and technological advances
7. DA Lightclient Node Operations and Delegators:
Data Availability is crucial for Lumia. The increased token supply supports this by:
Offering rewards to Lightclient DA node operators who ensure data availability and network security
Enabling a robust delegation system where LUMIA holders can delegate tokens to DA nodes and earn rewards.
This creates a two-tiered model:
Full node operators
Node Sale License holders to run their own own lightclients
In summary, increasing the token supply to 238,888,888 LUMIA is a strategic move to secure the resources needed for developing and expanding a competitive ecosystem. This boost will support advanced features, integrate with innovative protocols, and foster a sustainable economic model to support Lumia’s long-term growth and success with incentives strictly for community.
Supply Breakdown
The Newly Minted Token Supply (NTS) consists of two allocations. Node Rewards and Ecosystem Rewards. None of the NTS is allocated to the team.
The two allocations will be entirely distributed to ecosystem contributors as such:
73,439,930 LUMIA (50.21%): Rewards for node operators, validators, sequencers, delegators, and more. Vested over 20 years.
72,817,703 LUMIA (49.79%): Community initiatives including airdrops, grants, liquidity mining, and more. Democratic approach to many initiatives via a governance vote by LUMIA token holders. Vested over 10 years.
On Chain Transparency
The LUMIA token supply are held in secure multi-sig vaults:
Vault 1 - ORN to LUMIA Swap
0x424Db71F0Ee69137c850A639ce9bfe6c18a8150A
Vault 2 - Node Rewards
0x0Ee999247f3e33406131bC6AA896192Bd40cd6b7
Vault 3 - Ecosystem Rewards
0xb10B260fBf5F33CC5Ff81761e090aeCDffcb1fd5
Emissions
Current ORN circulating supply pre token swap: 92,631,255
Post token swap circulating supply: 104,541,919
Post token swap, Lumia will unlock the first quarter of rewards - accounting for the increase of 11,910,664 tokens in circulation immediately following the token swap. The new token supply will be vested quarterly over 20 years:
1
9,180,000.00
2,730,664.00
11,910,664.00
2
9,180,000.00
2,730,664.00
11,910,664.00
3
9,180,000.00
2,730,664.00
11,910,664.00
4
9,180,000.00
2,730,664.00
11,910,664.00
5
4,590,000.00
1,820,443.00
6,410,443.00
6
4,590,000.00
1,820,443.00
6,410,443.00
7
4,590,000.00
1,820,443.00
6,410,443.00
8
4,590,000.00
1,820,443.00
6,410,443.00
9
2,295,000.00
1,819,000.00
4,114,000.00
10
2,295,000.00
1,819,000.00
4,114,000.00
11
2,295,000.00
1,819,000.00
4,114,000.00
12
2,295,000.00
1,818,995.00
4,113,995.00
13
1,147,500.00
1,786,904.00
2,934,404.00
14
1,147,500.00
1,786,904.00
2,934,404.00
15
1,147,500.00
1,786,904.00
2,934,404.00
16
1,147,500.00
1,786,904.00
2,934,404.00
17
573,750.00
1,754,809.00
2,328,559.00
18
573,750.00
1,754,809.00
2,328,559.00
19
573,750.00
1,754,809.00
2,328,559.00
20
573,750.00
1,754,809.00
2,328,559.00
21
286,875.00
1,722,713.00
2,009,588.00
22
286,875.00
1,722,713.00
2,009,588.00
23
286,875.00
1,722,713.00
2,009,588.00
24
286,875.00
1,722,713.00
2,009,588.00
25
143,437.50
1,690,617.00
1,834,054.50
26
143,437.50
1,690,617.00
1,834,054.50
27
143,437.50
1,690,617.00
1,834,054.50
28
143,437.50
1,690,617.00
1,834,054.50
29
71,718.75
1,658,521.00
1,730,239.75
30
71,718.75
1,658,521.00
1,730,239.75
31
71,718.75
1,658,521.00
1,730,239.75
32
71,718.75
1,658,521.00
1,730,239.75
33
35,859.38
1,626,426.00
1,662,285.38
34
35,859.38
1,626,426.00
1,662,285.38
35
35,859.38
1,626,426.00
1,662,285.38
36
35,859.38
1,626,426.00
1,662,285.38
37
17,929.68
1,594,330.00
1,612,259.68
38
17,929.68
1,594,330.00
1,612,259.68
39
17,929.68
1,594,330.00
1,612,259.68
40
17,929.68
1,594,330.00
1,612,259.68
41
8,964.84
0
8,964.84
42
8,964.84
0
8,964.84
43
8,964.84
0
8,964.84
44
8,964.84
0
8,964.84
45
4,482.42
0
4,482.42
46
4,482.42
0
4,482.42
47
4,482.42
0
4,482.42
48
4,482.42
0
4,482.42
49
2,241.21
0
2,241.21
50
2,241.21
0
2,241.21
51
2,241.21
0
2,241.21
52
2,241.21
0
2,241.21
53
1,120.61
0
1,120.61
54
1,120.61
0
1,120.61
55
1,120.61
0
1,120.61
56
1,120.61
0
1,120.61
57
560.30
0
560.30
58
560.30
0
560.30
59
560.30
0
560.30
60
560.30
0
560.30
61
280.15
0
280.15
62
280.15
0
280.15
63
280.15
0
280.15
64
280.15
0
280.15
65
140.07
0
140.07
66
140.07
0
140.07
67
140.07
0
140.07
68
140.07
0
140.07
69
70.04
0
70.04
70
70.04
0
70.04
71
70.04
0
70.04
72
70.04
0
70.04
73
35.02
0
35.02
74
35.02
0
35.02
75
35.02
0
35.02
76
35.02
0
35.02
77
17.51
0
17.51
78
17.51
0
17.51
79
17.51
0
17.51
80
17.56
0
17.56
Emission schedule reflects the amount of tokens that are available for utilization, however this does not mean tokens will enter circulation. Actual circulating supply consists of node rewards that are not locked for 12-24 months, as well as airdrops/initiatives that are approved by community DAO votes. Circulating supply will be clearly visible on-chain once tokens are distributed from their respective vault, and constantly updated on tracking tools such as CMC amongst others.
Conclusion
The transition from ORN to LUMIA marks a significant milestone in our project's journey. LUMIA is not just a token; it's the fuel that will power the next generation of RWA tokenization and DeFi innovation on Lumia chain. We encourage all ORN holders to participate in this token swap and join us in building a more inclusive and efficient financial ecosystem.
Stay tuned for further announcements and updates regarding the token swap process. Together, we're stepping into a new era of decentralized finance with Lumia chain and LUMIA.
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