Token Economics

We do not concentrate too much on the specific number of tokens to be incorporated in the game, whether it is a 2-token model or a 3-token model. Instead, our focus lies in delivering value to various types of users.

In the past or even currently, many GameFi or Crypto games tend to mix different users together or merely employ Ponzi-scheme-based gamification. We strive to develop a more balanced and value-driven approach for all participants.

We divide users into 3 categories in our crypto game

• Defi users

• GameFi user

• Players

Lumiterra's token economic model maximizes the Defi model, modern corporate governance and the operation mechanism of the stock system, allowing Defi users, GameFi users and players to coexist, compete, collaborate in a healthy way.

The benefits of all parties to some extent form a better positive cycle for the entire product.

The game is divided into three flywheels to meet the needs of different user profiles while isolating them to a certain degree, thereby achieving the long-term healthy development of the entire game product.

The three flywheels are the Defi flywheel, the GameFi flywheel and the Player flywheel.

Defi Flywheel

Overview

Reserve-back Floor Price Mechanism

The Lumi Finance market-driven protocol owns the liquidity for LUA.

In simpler terms, buying LUA through the central AMM adds liquidity, creating a sell-depth for LUA sales. This liquidity isn't borrowed but held by the central AMM

Minting LUAUSD

Users can mint LUAUSD by staking LUA tokens, with the amount of LUAUSD minted determined by the current floor price.

USDT/LUAUSD Stable Coin Curve Pool

To minimize the impact of high currency volatility on the game economy, we have adopted a mechanism similar to a stable coin: LUAUSD. This allows in-game prices to fluctuate based on the demand for items, without introducing excessive influence from currency volatility.

Providing LUA into Curve Pool also yields extra LUAOP for LPs.

Value Capture Protocol

USD Floor Price Support Pool	Where the peg of the floor price
Holder Reward Pool	It rewards the holders of LUA, everytime a transaction happens on market-driven AMM, part of the transaction fee goes to this pool
AMM Pool	Regular LUA/Stable Coin AMM Pool
Game Bonus Pool	It goes to Lottery System where it incentives gamefi users and players, the higher volume of the defi system, the higher amount of active users in game

Find out more here https://lumi-finance.gitbook.io/docs/

The GameFi Flywheel

Under the incentive of a larger prize pool, more P2E (Play-to-Earn) users will be attracted to participate and earn money.

Note that GameFi users are necessary in our MMO game, just like traders and business man in real world that bring liquidity, the most important thing is that whether they bring value to this ecosystem while earning.

During the money-making process, the in-game goods economy model will generate more transactions. Simultaneously, this process will enhance the overall gaming experience, providing players with a more interesting and engaging experience. As a result, players will develop greater demand, offering more opportunities for GameFi users to meet these demands and promoting increased transaction activity.

The Player Flywheel

As a long-term project, Lumiterra firmly believes that the ultimate value will return to the fundamentals, where enjoyable games are what players seek.

As an MMORPG, the research, development, and operation of the product are more challenging, but the potential rewards are also higher. To satisfy the needs of a growing user base, continuous content input and development are required. Our goal is to captivate players through high-quality games, allowing the in-game goods economy to function naturally and fostering a healthy economic circulation system that supports the game's ongoing expansion and depth, ultimately forming a positive feedback loop.