LUX Token Economics

LUX is the native token of the Lux Network, used for staking, transaction fees, and governance.

Token Denominations

LUX uses 6 decimal places on the P-Chain and X-Chain, similar to USDC/USDT. This allows for a maximum supply of approximately 18.4 trillion LUX within uint64 constraints.

Unit	Symbol	Value in LUX	Value in µLUX
MicroLux	µLUX	0.000001	1
MilliLux	mLUX	0.001	1,000
Lux	LUX	1	1,000,000
KiloLux	kLUX	1,000	10^9
MegaLux	MLUX	1,000,000	10^12
GigaLux	GLUX	1,000,000,000	10^15
TeraLux	TLUX	1,000,000,000,000	10^18

Minimum Transferable Unit

The smallest transferable unit on the P-Chain is 1 µLUX (microLUX) = 0.000001 LUX.

Why 6 Decimals?

Maximum Supply: With 6 decimals, uint64 can represent up to ~18.4 trillion LUX
Target Supply Cap: 2 trillion LUX maximum supply
Practical Minimums: 0.000001 LUX is small enough for all practical use cases
Compatibility: Matches USDC/USDT decimal precision

Chain-Specific Denominations

P-Chain / X-Chain

Uses 6 decimals (µLUX base unit)
Native LUX token for staking and transfers
Validator rewards paid in LUX

C-Chain (EVM)

Uses 18 decimals (Wei base unit, standard EVM)
1 LUX = 10^18 Wei on C-Chain
Gas fees denominated in Wei

Supply Mechanics

Maximum Supply

Supply Cap: 2,000,000,000,000 LUX (2 trillion)
Enforced by the reward calculator

Initial Distribution

Genesis allocations with unlock schedules
Validator staking rewards
No pre-mine beyond documented allocations

Reward Calculation

Validators earn rewards based on:

Stake duration (longer = higher rate)
Stake amount relative to total supply
Remaining supply (rewards decrease as supply approaches cap)

MintingRate = MinRate + (MaxRate - MinRate) × (StakeDuration / MaxDuration)
Reward = RemainingSupply × (StakeAmount / TotalSupply) × MintingRate × (StakeDuration / MaxDuration)

Reward Config Parameters

Parameter	Mainnet Value
MinConsumptionRate	10% annually
MaxConsumptionRate	12% annually
MintingPeriod	365 days
SupplyCap	2 TLUX

Staking Requirements

Validators

Minimum Stake: 2,000 LUX
Maximum Stake: 3,000,000 LUX
Minimum Duration: 2 weeks
Maximum Duration: 1 year
Uptime Requirement: 80%

Delegators

Minimum Stake: 25 LUX
Delegation Fee: Minimum 2%

Transaction Fees

Operation	Fee
Standard Transaction	0.001 LUX (1 mLUX)
Create Asset	0.01 LUX (10 mLUX)

Code References

The denomination constants are defined in:

Shared: constants (see constants module)
Genesis: genesis/pkg/genesis/params.go

// LUX uses 6 decimals (1 LUX = 10^6 microLUX)
const (
    MicroLux  uint64 = 1                    // 0.000001 LUX
    MilliLux  uint64 = 1000 * MicroLux      // 0.001 LUX
    Lux       uint64 = 1000 * MilliLux      // 1 LUX
    KiloLux   uint64 = 1000 * Lux           // 1,000 LUX
    MegaLux   uint64 = 1000 * KiloLux       // 1,000,000 LUX
    GigaLux   uint64 = 1000 * MegaLux       // 1 billion LUX
    TeraLux   uint64 = 1000 * GigaLux       // 1 trillion LUX
)

LUX Tokenomics