Lumenswap’s LSP Asset Goes Live on Stellar (XLM): Details
Lumenswap is a client for trading and exchange of assets on Stellar Lumens (XLM) blockchain. Like many other top-league exchange, it has its own utility token LSP.
Enhanced liquidity, advanced governance: LSP is now live on Stellar
According to the official announcement by Lumenswap team, liquidity and governance issues were two main groups of rationales behind the launch of LSP exchange token.
?We are proud to announce that the LSP asset is now minted in the Stellar blockchain.
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Launching utility tokens for exchange typically catalyzes the trading activity of centralized platforms. Tokens of such type can be used for bonuses as well as for the premiums for marketmakers and liquidity providers. This, in turn, results in better rates and smooth trading experience for all users as high liquidity eliminates the possibilities for manipulations and price slippages.
In addition, native tokens should be referred to as a popular instrument for exchange’s self-governance designs. By owning utility tokens, community enthusiasts obtain a right to have a say in crucial community referendums and voting on major protocol updates.
Using utility tokens as governance assets allows exchange to migrate to DAO model gradually.
That being said, LSP is introduced as a reward and governance asset for the entire Lumenswap ecosystem. 1,000,000,000 LSP coins have been minted on Stellar blockchain; this amount is fixed and isn’t subject to changes.
Introducing basic use-cases for LSP
LSP token is going to be ‘rare’ asset as only 12 per cent of its supply is reserved for community public sale. 38 per cent of its supply is preserved for team, foundation, and advisors. Founders and team members’ reserves will be unlocked in one year upon token generation event.
Basically, LSP token will be used for rewards of its holders and traders. To earn reward for trading, user should trade LSP on any Stellar-based exchange, not necessarily on Lumenswap. Lists of accounts eligible for trading will be published monthly to ensure the transparency of this practice: only 1000 randomly chosen accounts on Stellar (XLM) network will be eligible for this offer.
Also, Lumenswap (LSP) tokens will be integrated in exchange’s governance scenario. LSP holders will be able to vote on all meaningful solutions related to the progress of the exchange. At the same time, the accurate details of how LSP token will be used for voting will be disclosed further.
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