$Lumi Token Utility

The $LUMI token is at the epicenter of Lumi AI’s ecosystem, engineered to align platform growth with user success through five core utilities:

  1. Governance Rights: Token holders govern protocol upgrades via Lumi DAO, voting on AI model priorities (e.g., integrating new DeFi protocols), fee structures, and treasury allocations.

  2. Premium Access Tier: Users stake $LUMI to unlock institutional-grade features – cross-exchange smart order routing, probabilistic price targets, and AI hedge strategy templates.

  3. Performance Incentives: Traders earn $LUMI rewards for contributing anonymized trading data that enhances the platform’s machine learning models, with payouts scaling based on data quality metrics.

  4. Fee Discount Engine: Token balances reduce subscription fees (30% discount at 1,000 $LUMI staked) and eliminate charges for advanced on-chain analytics like miner extractable value (MEV) detection.

  5. Liquidity Mining: Market makers earn boosted APY (up to 49%) on centralized and decentralized exchanges by providing $LUMI/stablecoin liquidity, with rewards algorithmically adjusted to maintain optimal token velocity.

Crucially, $LUMI introduces deflationary mechanics: 20% of subscription revenue and 45% of algorithmic trading fees fund quarterly token burns calibrated to network usage metrics. This creates a circular economy where increased platform adoption directly enhances token scarcity.

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