Staking & Airdrops

1. Dynamic Staking Mechanism

End users securely link their digital data footprints to their blockchain wallets. This allows apps, L1s and L2s to identify which users should be part of their target audience and attract them with targeted emails and rewards tailor made for their demographic.

Lucia Protocol utilizes a dynamic staking mechanism to reward Passport Holders who contribute to the protocol by sharing their data and participating in ad attribution. This staking system is designed to incentivize data sharing, ensure accurate attribution, and distribute rewards fairly among active participants, while leveraging omnichain capabilities for enhanced functionality.

2. Passport Holders and Staking

Passport Holders are central to Lucia Protocol’s ecosystem. By staking LUCX tokens, they unlock a range of benefits that increase their earning potential and integrate them into the revenue-sharing framework of the protocol.

Key Components:

1. Staking Rewards:

   • Passport Holders who stake LUCX tokens gain access to higher rewards. This includes revenue from identity validation fees and ad attribution activities.

   • The staking system is designed to reward long-term commitment and larger stakes. Passport Holders who stake more LUCX tokens or maintain their stake for a longer period are eligible for a greater share of the protocol’s profits.

   • Reward Formula:

     $$\text{Reward} = \frac{\text{Staker's LUCX Amount} \times \text{Duration}}{\text{Total LUCX Staked in the Network}} \times \text{Total Rewards Pool}$$
   • Rewards are distributed from transaction fees generated by advertisers and businesses using Lucia Protocol.

2. Tokenized Data Sharing:

   • Passport Holders can earn LUCX tokens by sharing their anonymized engagement and behavioral data with advertisers. The value of the data is determined by factors such as engagement level and purchase intent.

   • Data Value Calculation:

     $$\text{User Reward} = \text{Data Value Coefficient} \times \text{Engagement Level}$$
   • The more valuable the data, the higher the LUCX token rewards, incentivizing active and engaged users to share their data.

3. Profit Distribution:

   • A portion of the protocol’s revenue, generated from transaction fees and other streams, is allocated to Passport Holders based on their staked LUCX tokens.

   • The Profit Distribution Formula is:

$$\text{Profit Share} = \frac{\text{Staker's LUCX Amount} \times \text{Duration}}{\text{Total LUCX Staked}} \times \text{Allocated Profit Pool}$$

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3. Staking Tiers

Lucia Protocol features a tiered staking system that rewards Passport Holders based on their level of commitment:

• Tier 1: Bronze

  • Minimum Stake: 1,000 LUCX

  • Staking Duration: 30 days

  • Benefits: Access to basic validation tasks and governance voting rights.

• Tier 2: Silver

  • Minimum Stake: 5,000 LUCX

  • Staking Duration: 60 days

  • Benefits: Higher validation priority, increased reward share, and exclusive protocol features.

• Tier 3: Gold

  • Minimum Stake: 10,000 LUCX

  • Staking Duration: 90 days

  • Benefits: Top-tier validation priority, maximum reward share, and the ability to propose governance changes.

Staking Reward Formula

$$\text{Staking Reward} = \frac{\text{Total Rewards Pool} \times \text{Staker's LUCX Amount}}{\text{Total Staked LUCX in the Network}}$$

Where:

• Total Rewards Pool is derived from transaction and validation fees.

• Staker's LUCX Amount is the number of tokens staked by an individual.

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4. Profit Redistribution via Stake-Weighted Airdrops

Lucia Protocol implements a Stake-Weighted Airdrop System to distribute profits back to LCI stakers, incentivizing long-term holding and engagement.

Revenue Redistribution Model

The protocol generates revenue from multiple sources, such as subscription fees from advertisers and data monetization. A portion of this revenue is allocated to a Revenue Sharing Pool, which is distributed among LCI stakers.

Stake-Weighted Airdrops

The formula for determining a staker's share of the airdrop is:

$$\text{Airdrop Share} = \frac{\text{Staker's LUCX Amount} \times \text{Staking Duration}}{\text{Total LUCX Staked} \times \text{Average Duration}}$$

• Community Rewards: Bonuses and loyalty rewards are given to long-term stakers.

• Development Fund: A percentage of profits is reinvested to ensure continuous platform improvement.