LOM (Loka On-Chain Mining)Token
Native Loka token that acts as the reward and also fee accruing token.
LOM token is inherently net deflationary.
Emission is controlled by distributing only to active mining contract NFT via staking mechanism, linear to the value of transaction & mining yield produced. Emission also reduced by half every 6 months to ensure early participants get rewarded more.
LOM provides a way to reward early users and community members who actively grow the platform by helping to spread the word to larger audience, due to the these mechanisms:
- Brings real value — LOM is accruing fees in their treasury which is increasing overtime
- The only way to get more LOM is by staking active Mining Contract NFT or referring other users to buy mining contract
- Time limit — when mining contract expires, LOM rewards will also stopped. This is to encourage active participation.
- Unique burn-redeem mechanism that increase long-term holders treasury allocation
Users will need to stake Loka NFT and/or refer other users to get LOM rewards allocation and finally eligible for shares from platform transaction fees.
There will also be allocation for LOM airdrop for users who participated before the platform launched.
There are 2 factors that contributes to how many LOM users will get.
- Contract Period The highest LOM distribution is on the day when the NFT is minted (contract bought) and then decrease linearly until zero when contract expired.
- Price value The price of the contract itself — in USD value
Longer mining contract will get higher LOM rewards even though the contract price is the same with the shorter contract
i.e. $1000 / 1-month contract will get much less LOM compared to $1000 / 2-years contract.
Loka provide 2-tier referral mechanism, where 25% of the LOM generated from Loka NFT is being rewarded to it's "Origin" and "Ancestor" NFT.
- 1st level “Origin”
- This origin NFT will get 20% of the LOM reward allocation of the contract NFT that is being minted
- If origin NFT is a Genesis NFT, then it will get 25%
- 2nd level “Ancestor”
- This is the "grandfather" NFT that is being minted. Eligible for 5% LOM share
- Genesis NFT has no origin nor ancestor, so it will get:
- 100% of it’s own reward
- 25% of the child reward
LOM rewards allocation per NFT will be decreased by half every 6-months after the platform launched.
This means that every mining contract NFT is getting less LOM reward, but with always increasing treasury value, ensuring net deflationary.
LOM token represents percentage ownership of the community treasury which capturing and accruing value:
- 2.5% profit from the mining contract NFT sales
- 1.25% fee from bitcoin mining yield for each active mining contract
- 0.5% premium from energy via LET (Loka Energy Token) sales
The value in the treasury is locked in the smart contract that can only be redeemed by burning LOM.
To redeem reward on the treasury, LOM holders entitled to burn their LOM for 50% of their ownership percentage of the treasury.
This will increase the value of the other LOM holders and giving the upward value pressure of the token.
For example:
- Total LOM in circulation = 1,000,000
- Total fund in treasury = $10,000 + 1 BTC
per 10,000 LOM (equals to 1% of LOM circulation) represent ownership of 1% treasury or equals to $100 + 0.01 BTC
When someone burns 10,000 LOM, this person will be rewarded 50% of the ownership or equals to $50 + 0.005 BTC
- Total LOM in circulation now = 990,000
- Total fund in treasury now = $9,950 + 0.995 BTC
- The value of LOM is increasing due to burn rate is higher than what has been subtracted from the treasury.
This means also when 50% of tLOM burns, the supply of treasury only decrease by 25% and the value of proportional ownership of tLOM token to treasury increased by 50%
