Updated Token Economics
door LCX Team · · Updated March 23, 2021
Growing our ecosystem for LCX Token
Since 2019 LCX has conducted 5 token burns, burning a total of 50 million LCX Token. The LCX Token is the fuel for our community and is used at LCX.com for a variety of services.
By purchasing the LCX Token, users get a variety of benefits:
- LCX Exchange: Reduction of up to 50% trading fees at LCX’s compliant digital asset exchange.
- LCX DeFi Terminal: get full access including usage of our second layer DeFi protocol to enable limit orders on Uniswap.
- LCX Terminal: Become a pro user and pay monthly fees of LCX Terminal with LCX Token.
- LCX Vault: Pay fees for LCX Vault and our crypto custody solutions.
- LCX Price Oracle: pay fees in relation to LCX’s regulated reference price services which we provide as Price Service Provider.
- Token Sales: pay fees in relation to token sales hosted or powered by LCX technology.
- Furthermore companies and clients of LCX will have the ability to pay fees for listings, exchange membership fees or token sale fees with LCX Token as well.
With the updated token economics we are ending the token burn program as well as the minimum utility value. With the launch and roll-out of our new products and services, the updated token economics will will lead to an increase of usage of LCX Token within our ecosystem.
Token Economics Updated
Key facts and figures about the LCX Token. Download PDF.
How do we enable our LCX ecosystem and the LCX Token to prosper and grow?
Key reasons to our token economics update:
- Global Growth and Market Expansion in the North American and Asian Markets: As we enter new markets, register for additional licenses, list on other compliant exchanges and partner with other regulated platforms, we want to ensure that our token economics are supporting this growth.
- Usage of LCX Token: We are expanding the utility and use cases of LCX Token as we roll-out a variety of new functionalities, products and services. Increasing consumption and usage.
- Token Economics: We want a healthy and thriving ecosystem for our LCX community and our utility token. Reducing the supply of shares or tokens over time can discourage capitalization just like deflationary currencies discourage consumption. Also burning of tokens limits the ability to reinvest in itself. Placeholder.vc published an article showcasing the downside of token burns.
- Regulatory Reasons: Endless opportunities ahead and we don’t want to limit our growth. LCX Tokens are classified as utility token under US, European, Singapore and Liechtenstein laws. Several legal assessments performed by qualified legal firms in different jurisdiction have confirmed this classification. For LCX’s future growth we want to ensure that the classification will not be questioned in any way. A good reference guide is the Crypto Rating Council, introduced by Coinbase, with a classification and rating of digital assets wether they classify as digital securities or not.
The LCX Token is your chance to be part of LCX’s vision to bridge the gap between traditional finance and the new monetary world powered by blockchain and cryptocurrencies.