# 👌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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