Tokenomics
Lumexo is powered by LMX, a utility and governance token designed to support participation, incentives, and long-term alignment within the Lumexo ecosystem.
Lumexo Token Overview
Asset Code
LMX
Network
Stellar
Asset Issuer
GCJF4534PAFBOQ6R7QLVMRKUQV2AMNGEXGGDDN2ISYAIN5XPKTLUMEXO
Issuer Domain
lumexo.io
Type
Utility & Governance
Supply Model
Fixed
Decimals
3
Burnable
Yes
Total Supply
The total supply of LMX is 35,000,000,000 tokens.
The supply is fixed and cannot be increased. There is no inflation or minting mechanism.
Initial Circulating Supply
7,875,000,000 LMX
22.5% of total supply
Estimated Token Release Schedule
The following chart illustrates the expected evolution of the LMX circulating supply over time.
The initial circulating supply at launch consists primarily of liquidity provision, early airdrop distributions, and limited ecosystem allocations. Additional tokens enter circulation progressively as vesting schedules activate for marketing initiatives, team allocations, and long-term community distribution programs.
Token burn mechanisms reduce the total supply over time but are not reflected as circulating inflows. As a result, the circulating supply increases through scheduled unlocks while the maximum supply decreases as burns are executed.
The chart reflects maximum projected circulating values at each point in time. Actual circulating supply may be lower depending on user participation, protocol usage, and governance decisions.
Lumexo Allocation
The LMX token supply is distributed to ensure long-term sustainability, ecosystem growth, and strong alignment between users, contributors, and the Lumexo protocol.
Community Distribution
35% of total supply (12,250,000,000 LMX)
This allocation is designed to incentivize long-term usage and sustained participation within the Lumexo ecosystem.
Distribution Model
Annual distribution window every October 8th (World Octopus Day)
Distribution begins in Year 2 after TGE
Vesting Schedule
Total duration: 8 years
Up to approximately 1.53 billion LMX per year may be made available for community distribution
Actual distributed amounts are determined based on protocol activity, usage metrics, and DAO-defined criteria
Distribution Metrics
Allocated to active Lumexo users based on on-chain activity and ecosystem participation
Airdrop Allocation
15% of total supply (5,250,000,000 LMX)
The airdrop allocation is designed to reward early users, ecosystem partners, and long-term community members.
Distribution Model
60% allocated to active Lumexo users
20% allocated to integrated ecosystem partners (e.g. Blend)
15% allocated to long-term community members
5% allocated to users of Stellar-based ecosystem protocols, including Stellar DEX participants.
Vesting Schedule
50% unlocked at TGE
50% vested linearly over 6 months
Team Allocation
15% of total supply (5,250,000,000 LMX)
The team allocation is structured to ensure long-term alignment and prevent short-term market pressure.
Distribution Model
No tokens released at launch
Vesting Schedule
30% cliff unlock released 18 months after launch
Remaining 70% vested linearly over 36 months
Full vesting completed approximately 4.5 years after launch
Marketing and Partnerships
10% of total supply (3,500,000,000 LMX)
This allocation supports ecosystem expansion, strategic partnerships, and adoption initiatives.
Purpose
Strategic partnerships
Ambassador programs
Growth and adoption campaigns
Vesting Schedule
20% unlocked at TGE
80% vested linearly over 24 months
Distribution Model
Tokens allocated to a dedicated marketing wallet
Continued vesting is subject to performance-based criteria, including milestones.
Liquidity Provision
10% of total supply (3,500,000,000 LMX)
Distribution Model
Fully unlocked at launch
Used exclusively for decentralized exchange liquidity and required protocol pools
Burn Allocation
10% of total supply (3,500,000,000 LMX)
Burn Design
Tokens are not pre-burned or held in a separate wallet
Up to 10% of total supply is eligible to be burned over time
Burn Schedule Framework
Year 1: 0%
Year 2: up to 6%
Year 3: up to 12%
Year 4: up to 18%
Year 5: up to 22%
Year 6: up to 22%
Year 7: up to 20%
Burn Governance
Burns are initiated exclusively through DAO governance
Burns are conditional and executed only when predefined economic and protocol health metrics are met
DAO Allocation and Governance Economics
3% of total supply (1,050,000,000 LMX)
At TGE, tokens allocated for DAO and governance are issued and held in a dedicated on-chain treasury but remain inactive until governance mechanisms are progressively activated.
Proposal Tier
80% of DAO allocation
Addresses must stake 0.2% of the DAO allocation to submit proposals
Tokens are escrowed during the proposal lifecycle
Proposal tokens do not carry voting rights
Voting Tier
20% of DAO allocation
Tokens are used exclusively for approving or rejecting proposals
Voting eligibility is determined through participation and protocol usage metrics
Governance Safeguards
Slashing mechanisms for proven malicious behavior
Slashed tokens may be burned through DAO approval
Reserve Allocation
2% of total supply (700,000,000 LMX)
Purpose
Emergency use cases
Unforeseen protocol risks
DAO-approved contingency actions
Reserve usage is strictly governed through DAO approval.
Lumexo Utility
It is used to support fee-related mechanisms, liquidity and market incentives, protocol access controls, staking commitments, and governance participation across the Lumexo ecosystem and integrated Stellar-based infrastructure. The utility of LMX is designed to align protocol usage, economic participation, and long-term network sustainability through usage-dependent incentives rather than inflationary reward mechanisms.
Fee Optimization and Rebate Mechanisms
LMX is used within the Lumexo protocol to facilitate fee optimization across supported activities, including swaps, market trades, liquidity provisioning, crypto purchase flows, and interactions with integrated protocols and the Stellar native DEX.
A portion of protocol fees generated through eligible activities may be rebated in LMX, subject to protocol-defined parameters. Fee rebates are settled on-chain and distributed as claimable balances or payments.
This mechanism is intended to reduce effective transaction costs for active participants while reinforcing LMX usage within the protocol.
LMX Gas Rebate Program
The LMX Gas Rebate Program defines a protocol-level fee redistribution mechanism applied to all supported activities executed through the Lumexo platform. For each eligible transaction, the protocol applies a fixed fee rate. Fifty percent (50%) of the collected fee is redistributed to the user in LMX, while the remaining portion is retained by the protocol. Fee rebates are calculated deterministically per transaction and are settled on-chain as claimable balances or payments denominated in LMX.
Liquidity and Market Incentives
Liquidity providers earn yield from trading fees generated by Lumexo liquidity pools, in accordance with standard AMM mechanics.
In addition to pool-derived yield, the protocol applies a yield adjustment mechanism based on the amount of LMX held by the liquidity provider.
Yield adjustments are calculated as a percentage of the base pool yield and do not replace or modify the underlying AMM fee distribution.
LMX Yield Adjustment Mechanism
Liquidity providers who hold LMX may receive an additional yield adjustment applied on top of the base APY generated by the liquidity pool.
For example, if a liquidity pool generates a base APY of 5%, a 10% yield adjustment results in an effective APY of 5,5%.
Protocol Access and Fee Privileges
LMX functions as an access and configuration token for selected protocol features and fee conditions within the Lumexo platform. Holding LMX enables access to predefined protocol-level privileges, primarily related to fee optimization and capital efficiency, without altering core execution or settlement mechanics.
Zero-Fee Core Asset Conversions
Lumexo provides zero-fee conversion functionality for selected core asset pairs executed directly through the Lumexo platform. When conversions are performed using Lumexo-native execution no protocol fees are applied for the following asset pairs:
LMX β XLM
LMX β USDC
The zero-fee conversion feature is available exclusively through the Lumexo platform and is intended to reduce transaction friction for users interacting with core ecosystem assets.
The protocol may additionally define tier-based fee conditions, under which users holding predefined amounts of LMX can receive reduced or zero-fee treatment for eligible conversions and interactions.
Staking and Long-Term Commitment
LMX staking is implemented as a time-based lock-up mechanism designed to align token holders with long-term protocol participation.
When LMX tokens are staked, they are locked for a predefined period and cannot be withdrawn, transferred, or otherwise accessed until the selected lock-up duration has fully elapsed.
Lock-Up Durations and Parameters
Participants may choose between predefined staking durations. Each duration applies a fixed lock-up period during which staked tokens remain non-transferable. Lock-up periods are enforced at the protocol level and are immutable for the duration of the staking commitment.
Staking Rewards
Staking rewards are time-weighted and vary by lock-up duration.
Indicative ranges: β’ Short-term lock-ups: lower relative yield β’ Medium-term lock-ups: moderate relative yield β’ Long-term lock-ups: higher relative yield
Actual APY values are variable and subject to protocol revenue, staking participation rates, and liquidity utilization.
Rewards are denominated in LMX and distributed according to protocol-defined parameters.
Staking APY is variable and may be adjusted based on protocol revenue, staking participation levels, and liquidity utilization.
Lumexo Governance
Lumexo governance defines the process through which protocol parameters, economic mechanisms, and system-level configurations are proposed, evaluated, and modified over time.
Governance is implemented progressively as the Lumexo ecosystem matures, allowing protocol decentralization to evolve in controlled phases.
Governance-related tokens are issued at the token generation event (TGE) and held in a dedicated on-chain treasury, remaining inactive until governance mechanisms are gradually activated.
Governance Model
The Lumexo governance framework follows a two-tier structure that separates proposal creation from voting authority.
Proposal Tier
The proposal tier is used exclusively for the submission and management of governance proposals.
Proposal submission requires staking a predefined amount of LMX
Proposal tokens are escrowed for the duration of the proposal lifecycle
Escrowed tokens do not carry voting rights
Voting Tier
The voting tier is used solely for approving or rejecting proposals.
Voting eligibility is determined based on participation criteria and protocol usage metrics defined by governance parameters.
Governance Safeguards
The governance framework includes safeguards designed to mitigate malicious or abusive behavior.
Slashing mechanisms may be applied in cases of proven misconduct
Slashed tokens may be burned subject to governance approval
Governance Evolution
Governance parameters, thresholds, and activation stages may be adjusted over time through governance decisions as the protocol evolves.
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