aLUM

aLUM is a non-transferable escrowed governance token that represents staked LUM within the Lumnia ecosystem. It can be earned through farming rewards or by directly converting LUM into aLUM. This token plays a vital role in governance and incentivization, allowing users to participate in decision-making while earning a share of Lumnia’s protocol revenue.

By staking aLUM, users gain access to revenue sharing from Lumnia's protocol earnings. This means that holders of aLUM receive a portion of the platform’s generated revenue, creating a direct incentive for active participation and long-term commitment. Additionally, aLUM can be allocated for additional benefits, such as:

• Boosted Rewards: Amplify your earnings from liquidity provision or other ecosystem activities.

• Governance Power: Vote on key proposals and decisions, shaping the direction of the Lumnia ecosystem.

• Premium Features: Unlock exclusive rewards and opportunities tailored to aLUM holders.

Conversion & Redemption

aLUM and LUM are mutually convertible, but the process and terms differ depending on the direction of conversion.

LUM to aLUM Conversion

• Instant Conversion: LUM can be converted into aLUM instantly at any time.

• Conversion Ratio: The ratio is 1:1, making it a straightforward and seamless process to stake LUM and receive aLUM.

aLUM to LUM Redemption

The process of converting aLUM back into LUM involves a vesting period, which is determined by the user. The redemption ratio depends on the selected vesting duration:

• Minimum Vesting (7 Days): Provides a 1:0.5 ratio (50% of the aLUM is redeemed as LUM).

• Maximum Vesting (3 Months): Provides a 1:1 ratio (full redemption of aLUM as LUM).

If a vesting duration shorter than the maximum is selected (with a ratio < 1:1), any unclaimed excess LUM is burned, ensuring fair participation in the ecosystem.

Users can cancel the aLUM redemption process at any time, giving them flexibility to adjust their strategies as needed.