LuaSwap has redesigned its tokenomics and operational strategy to address issues within the trading system. At its core, it is a multi-chain protocol that provides community governance through LUA tokens. Its focus is on supporting small, emerging token pools rather than competing for liquidity within top-tier token pools. Additionally, LUA’s tokenomics have been reimagined with a vesting schedule that not only rewards early adopters but also incentivizes them to stay engaged in governance over longer periods. The protocol will have a fair launch without seed investments, founder fees, or pre-mines.
LUA tokens are distributed to liquidity providers (LPs) to encourage their continued participation in the protocol. Holding LUA tokens means having a say in protocol governance. All LUA token holders have the right to decide which chains LuaSwap should be implemented on next, how many LUA tokens should be distributed to LPs on new chains, and which new token projects LuaSwap should support.