$LVT Tokenomics & Utility

Tokenomics & Utility

The $LVT token serves as LumiVault’s gateway to real-world gold exposure through a secure and verifiable on-chain mechanism. Each token represents a fractional claim on LumiVault’s 80-tonne gold reserve, backed by licensed mining rights and authenticated through real-time Proof-of-Reserve (PoR) documentation. At a defined ratio of 1 $LVT equaling 0.16 grams of gold, the token offers transparent and asset-backed digital ownership without the need for intermediaries.

Rather than relying on artificial staking yields, the utility of $LVT centers on its redeemability and underlying value. Token holders with balances exceeding 1,000 $LVT will be able to redeem their holdings in PAXG—a regulated, gold-pegged asset backed by reserves stored in New York vaults. This redemption mechanism not only reinforces trust in $LVT’s intrinsic value, but also enables liquidity into stable assets without needing to physically hold or transport gold.

LumiVault’s platform integrates a dedicated PoR dashboard powered by oracle data to provide continuous transparency into reserve status, licensing, and token supply alignment. This infrastructure ensures that every $LVT in circulation is anchored to provable reserves and is redeemable in line with the protocol’s burn-and-release model. As redemptions are executed, corresponding tokens are burned—creating a deflationary pressure that protects long-term value for holders.

Engineered for institutional compatibility and individual access, $LVT enables programmable, composable, and globally accessible exposure to gold. It transforms static mining rights into dynamic, tokenized assets that can move across chains and integrate into modern DeFi protocols—without compromising on security, compliance, or transparency.

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Vesting & Emission Model

To prevent market manipulation, price volatility, and premature sell-offs, LumiVault implements a structured vesting and emission model. Founders, team members, and advisors adhere to strict vesting schedules, ensuring that their holdings are gradually released over time. This locks long-term commitment from the team and early supporters while protecting investors from rapid sell-offs.

Staking rewards follow a controlled emission model, where rewards are released gradually over five years, preventing supply shocks and ensuring sustainable APY. Liquidity tokens are strategically deployed to stabilize exchange markets, ensuring smooth trading operations while preventing sudden price swings. This method balances liquidity provision, market stability, and controlled inflation, ensuring $LVT remains a valuable gold-backed asset in the DeFi space.

Through this carefully structured tokenomics framework, LumiVault ensures **a sustainable, long-term token economy.

Category	Allocation (%)	Lockup / Vesting	Notes
Mining Reserve	40%	Locked up 5 years	For liquidity mining and ecosystem incentives
Team & Development	15%	12-month lockup (1-year cliff)	Ensures long-term commitment from core contributors
Staking Reserve	(Define %)	6-month cliff	Rewards for network participants and validators
Public Sale (Fjord + CEX)	10%	No lockup	Fully liquid at TGE via DEX and CEX
Marketing	5%	No lockup	Used for growth, branding, and acquisition strategies
Advisors & Partners	5%	6-month lockup	Strategic contributors aligned with long-term vision