Overview
Lum Network is a suite of tools for the retail market to make the right purchasing decisions.
- Lum Network is built using the Tendermint & Cosmos SDK.
- The project is building real-world decentralized business tools to help companies and customers.
- LUM is the Lum Network native token.
Lum Network at a glance
Lum Network is a fast, secure, and sustainable open-source blockchain protocol. It aims to be the trust layer between real-world businesses and customers, providing decentralized business tools for the retail market to make the right purchasing decisions.
Some proof-of-concepts include trusted store reviews on-chain for businesses, qualifying rewards programs for customers, as well as a managed blockchain service API with inbuilt wallets that will allow instant conversion of fiat to crypto and vice versa. Mainnet was launched Dec 15, 2021, and shortly raised $4M in a private sale with big goals to become the business trust engine.
The network was founded in early 2017 under the name Sandblock by Sarah-Diane Eck and Fabrice Bascoulergue on Ethereum. It later migrated onto a dedicated infrastructure based on the Cosmos SDK and the Tendermint BFT consensus engine as the project progressed.
Participants of Lum Network include retail business partners and third-party services, the LUM Foundation, as well as network validators and delegators.
Lum Network (LUM) token
The LUM token is Lum Network’s native utility token with an initial supply of 5,000,000,000 LUM tokens that have primary uses for the functioning of the protocol as:
- Staking of LUM tokens to help secure the network and collect transaction fees, and as rewards for their stakes.
- Transaction fees and rewards for companies using LUM.
- Offering B2B pricing on business LUM stakings.
Related: What is a token and how is it used in crypto?
Proof-of-Stake (PoS) LUM staking
Validators such as ourselves at Stakewith.us (and builders behind Unagii) operate nodes responsible for the protocol’s operations in securing the network and will earn staking rewards via transaction fees and distributed LUM tokens as incentives. Delegators (or users of Unagii) can help participate and secure the Lum Network protocol with their votes by delegating their stakes to us on the Unagii platform to receive a portion of the rewards that validators receive.
Staking LUM allows Unagii users to earn yield from rewards as an incentive to stake and provide security, which comes from transaction fees collected by the network plus distributed tokens to stakers due to their inflationary rewards policy. The inflation will be 20% per year and will fluctuate over time depending on the bonded token ratio (inflation will trend towards 7% if the staked ratio is more than 66%, and will trend towards 20% if the staked ratio is less than 66%). Rewards are paid out on a per block basis and users can choose to withdraw or compound accumulated rewards.
Note that staking risks do apply, including slashing risks upon validator downtime and double-signing. There is also a 21 day unbonding period for users when unstaking LUM from the network. During this period, users will not be able to withdraw and earn rewards.
Related: Staking coins: What is staking and how does it work?
How to stake LUM?
Staking LUM on Unagii is simple and convenient.
- Head to app.unagii.com/stake/lum
- Connect your wallet
- Stake LUM
- Approve and confirm transaction (gas fee payable)
View more info: Stakewith.us validator details
