## Total Supply
The total supply of **LMX** is **35,000,000,000 tokens**.
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The supply is fixed and cannot be increased.\
There is no inflation or minting mechanism.
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#### 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.
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### 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.\
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Fee rebates are calculated deterministically per transaction and are
settled on-chain as claimable balances or payments denominated in LMX.
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### 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.
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For example, if a liquidity pool generates a base APY of 5%, a 10%
yield adjustment results in an effective APY of 5,5%.
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### 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 ↔ XLM
* LMX ↔ 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.
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### 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.
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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.
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#### 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:
\
• Short-term lock-ups: lower relative yield
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• Medium-term lock-ups: moderate relative yield
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• Long-term lock-ups: higher relative yield
Actual APR 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.
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Staking APR is variable and may be adjusted based on protocol revenue,
staking participation levels, and liquidity utilization.
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## **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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