Explaining the token's purpose.
The native utility token of the LunaFi ecosystem ($LFI) is designed to play a major role in the functioning of the platform from collecting fees to incentivizing all platform participants alongside proper governance.
The community is at the heart of our project. LunaFI gives ownership of its platform directly to its end users through governance rights. The $LFI token serves multiple functions and conveys several rights within the LunaFi ecosystem;
Betting - $LFI will be awarded to users based on actual usage, fostering a sense of community and ownership of the protocol to those who actually use it!
Access - $LFI will provide holders and users access to special games, tournaments, products, and discounted commission structures on all house pools in the future.
Governance - Staking $LFI to receive $vLFI can be used as governance to submit proposals and vote. To find out more about our $vLFI yield generating token, click here.
Liquidity Incentives - $LFI will be distributed to all participants of the ecosystem including players, investors, and liquidity providers.
Fees - Developers using the LunaFi protocol pay fees in $LFI to build their dApps. With every bet accepted in a house pool.
Where do staking rewards come from?
The Lunabets Treasury collects fees from Lunabets on each bet accepted. The LFI acts as a House Pool pool & accepts bets in $LFI.
Over time, as the LFI token staking rewards become progressively smaller, the token price will increase in value, meaning protocol fees will grow to compensate stakers.
Where and how can I stake my LFI for vLFI? You can stake your LFI for vLFI by connecting your wallet, entering the amount, and approving the transaction within your digital wallet.
What is the current ROI for vLFI staking? You can check the ROI on the Governance tab. Please note that this value changes continuously due to fluctuating trading volumes in the House Pools and the number of LFI staked within the contract.
Why is my vLFI balance lower than my LFI balance? When you stake your LFI tokens, you “purchase” a share of the vLFI pool. Because vLFI appreciates in value compared to LFI. The amount of vLFI you get for your LFI decreases over time because the vLFI pool collects fees and $LFI bets.