UTILITY

This page describes the different use-cases for the $LBM token, and the potential benefits to arise from them.

🔶 Buyback and Burn Mechanism

To support the value of $LBM tokens, a portion of the company's profits will be allocated to a Buyback and Burn mechanism. This strategy involves purchasing $LBM tokens from the market and subsequently burning them, effectively reducing the circulating supply. As the supply decreases, the value of $LBM tokens could potentially increase, providing significant benefits to stakeholders.

Key Benefits:

• Reduction in circulating supply: By consistently burning tokens, the total supply of $LBM decreases over time, potentially driving up the token's value.

• Increased value for stakerholders: As the value of $LBM rises, stakers are likely to see a significant boost in the worth of their holdings.

🔶 Governance Rights

The $LBM governance protocol, "CHOOSE" is scheduled for release by Q4 2024. This will empower token holders with the ability to participate in decision-making processes related to the ecosystem.

Key Details:

• Governance Protocol Release: Expected by Q4 2024.

• Staking requirement: Asset tokenizers will be required to purchase and stake $LBM tokens for a minimum of 12 months in order to have their assets tokenized within the @libertum_token infrastructure. This requirement ensures long-term commitment and alignment with the ecosystem’s goals.

🔶 Asset Tokenizers

Asset tokenizers who wish to tokenize their assets within the Libertum infrastructure will be required to demonstrate a long-term commitment to the ecosystem.

Key Requirements:

• Mandatory staking: Asset tokenizers must buy and stake $LBM tokens for a minimum of 12 months to have their assets tokenized. This staking requirement ensures alignment with the ecosystem’s goals and contributes to the stability and growth of the $LBM token economy.

🔶 Lending Protocol

The lending protocol offers attractive incentives for those who buy and stake $LBM tokens.

Key Benefits:

• Interest rate boost: By staking a minimum of 10,000 $LBM, lenders receive a boost in their interest rate.

  • Example: If the base rate offered by a liquidity provider is 7.5%, borrowers can receive a 0.1% discount, reducing their borrowing rate to 7.4%, provided they have staked $LBM for at least 12 months.

🔶 Farming Market

Yield farmers can significantly enhance their returns by staking $LBM tokens.

Key Benefits:

• Yield boost: Staking a minimum of 10,000 $LBM provides a 2.5% boost to yield payments.

  • Example: If a yield farmer invests in an asset offering a 10% annual yield, staking 10,000 $LBM for the full term will increase their total return to 10.25% per year.

This approach benefits both yield farmers and $LBM token holders by increasing demand for $LBM, thereby potentially driving up its value.

Conclusion

The $LBM token is integral to the Libertum ecosystem, offering multiple avenues for value creation, from governance participation to financial incentives through buyback and burn mechanisms, lending protocols, and yield farming enhancements. Holding and staking $LBM not only supports the ecosystem but also provides tangible benefits to its holders.