👌Borrower Incentivisation

$LUMIN reserves 20% of the total $LUMIN supply for borrower incentivisation, which will act as a flywheel to bring active usage to the platform. These 1,520,000 tokens are emitted daily.

The initial distribution is as follows:

  • Every day, all active loans are rewarded with $LUMIN

  • Borrowers get the same dollar value of $LUMIN tokens every day, equal to their daily interest value

  • The maximum daily emission of $LUMIN is 500 $LUMIN and the DAO will govern the emissions in the future.

  • Surplus $LUMIN tokens that cannot be distributed, are burned

  • Distributed $LUMIN tokens are staked and locked for 6 months

As an example:

Loan 1: $10,000 at 2% interest for 1 term (30 days): total interest to be paid: $200. Interest to be paid per day: $200 / 30 = $6.66. Loan 2: $1,000 at 6% interest for 2 terms (60 days): total interest to be paid: $60. Interest to be paid per day: $60 / 60 = $1.

With a value of 1 $LUMIN = $0.30, the following distribution is done:

Loan 1: $6.66 / $0.30 = 22.2 Lumin Loan 2: $1 / $0.30 = 3.33 Lumin

To be burned: 500 - 22.2 - 3.33 = 474.47 $LUMIN

In case the total $LUMIN to be distributed is higher than the daily maximum emission, the distribution is proportionally reduced.

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