# Tokenomics

The following diagram summarizes the token flows between the Protocol and its users:

<figure><img src="https://lh4.googleusercontent.com/JPDznej7Zv9xBfah0hGLXcrJwPeysShLh4oYSUaI6aG6PmIBXykin1xbqGSCaeW4VQIyrAm7KARSY1ldQlnkhm38wNSFUJ-y6evJXKwYfbVa4_8HoudL890JEAm5azTlAJGO8L7VOY26GV5LkTsadSA" alt=""><figcaption><p>Figure 1</p></figcaption></figure>

**Token Name: LUCI**&#x20;

Max Supply:  100,000,000&#x20;

Initial Circulating Supply: 10,000,000<br>

**Token Name 2: LCI**

Max Supply: TBD

Initial Circulating Supply: TBD

**Token Distribution**

* Public Sale via Reg A Tier 2 Offering: 10% (10,000,000 LCI)
* Team & Advisory Board: 15% (15,000,000 LCI - w/ 3-year vesting period)
* Marketing: 10% (10,000,000 LCI)
* Treasury: 33% (33,000,000 LCI)
* Community Rewards: 17% (17,000,000 LCI)

**Token Utility**

* Governance: LCI token holders can vote on proposals - is it LCI token holders as well?
* Staking: LCI token holders can stake their tokens to earn rewards&#x20;
* Discounted Fees: LCI tokens can be used to receive discounts
* We need to add Trading: LCI tokens can be used to issue arb trades<br>

**TVL Calculation for Lucia Protocol:**<br>

<figure><img src="https://2787681558-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FWQHokesx4twoLalR3b7N%2Fuploads%2FhHKHjFpYny9KGinC9gWG%2Fimage.png?alt=media&#x26;token=1cac64c5-6a10-451d-8afa-7f248359fa8f" alt=""><figcaption></figcaption></figure>

In this equation, *Asset\_i* refers to the *iˆth* asset supported within the Lucia Protocol ecosystem. The term *Quantity of Asset\_i* indicates the total volume of that particular asset *(Asset\_i)*&#x74;hat is currently being lent out or utilized as collateral within the platform. Conversely, *Price of Asset\_i* denotes the present market valuation of Asseti, expressed in USD.