Tokenomics

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 a fixed 100,000,000 (100M) hard cap — no further minting. The deflationary mechanism is the auto-burn, so circulating supply only decreases over time as protocol usage grows.

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Genesis allocation

The full 100M supply is minted once at genesis and split across five buckets: Verify against the on-chain LuminaToken.totalSupply() and the FounderVestingV2 contract.

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Fee split (85 / 8 / 2 / 5)

Every protocol fee stream — policy premiums and the marketplace fee — flows through AdaptiveFeeDistributor, which splits each fee into:

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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

The BuybackEngine is deployed on Base mainnet at 0x558F1675c10650A027e68BE33F8C5F290d8Ea307. It receives the 8% buyback slice of every fee and (audit fix M-10 added commit-reveal MEV protection) handles larger periodic buybacks. 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.