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Documentation Index

Fetch the complete documentation index at: https://docs.lumina-org.com/llms.txt

Use this file to discover all available pages before exploring further.

This page consolidates the LUMINA token’s supply mechanics. For the contract-level deep-dive, see /concepts/lumina-token.

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Supply

LUMINA is the protocol’s native ERC-20 with capped initial supply. The deflationary mechanism is the auto-burn — supply only decreases over time as protocol usage grows.

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Allocation (V5.x)

BucketPurposeVesting
FounderTeam alignmentLocked in FounderVesting, 31-day months
TreasuryOperations & grantsMultisig-controlled
LiquidityDEX market-makingUnlocked, deployed to Uniswap
CommunityAirdrops, incentivesReleased by governance vote
Exact percentages are subject to governance updates; verify against the on-chain LuminaToken.totalSupply() and the FounderVesting / TreasuryVesting contracts.

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Auto-burn mechanics

Every premium paid generates a small fee that accrues to the protocol in USDC. When the accumulated fee crosses $500 OR after 50 successful purchases (whichever first), TWAPBurner V2 triggers:
  1. Read 1-hour LUMINA/USDC TWAP from the DEX (mitigates MEV).
  2. Swap accumulated USDC fees → LUMINA.
  3. Burn the resulting LUMINA via LuminaToken.burn().
The burn fires automatically — there’s no operator schedule. The rate tracks protocol usage 1:1.

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Buyback engine (planned)

A separate BuybackEngine (audit fix M-10 added commit-reveal MEV protection) will handle larger periodic buybacks from the treasury. Operationally, these larger buys go through a private mempool to mitigate sandwich attacks.

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Sustainability model

The protocol is designed to be self-funding once usage reaches a target threshold:
  • Premiums fund both the bond vault (for payouts) and the burn engine.
  • The vault solvency floor (audit fix M-11) ensures burnFromReserves never starves the bond payout queue.