LUM’s deflationary tokenomics are designed to ensure long-term value and sustainability within its ecosystem. By implementing a burn mechanism that reduces the circulating supply with every transaction and enforcing a strict no-minting policy, LUM preserves scarcity and enhances the token’s worth over time. With a capped supply of 1 billion tokens, the system guarantees that inflation is avoided, creating a stable and predictable economic model. This scarcity-driven approach not only fosters confidence among token holders but also drives demand as the available supply decreases.

The tokenomics model also prioritizes user engagement and trust through incentivized staking and rewards, encouraging active participation within the community. Transparent processes and decentralized governance build confidence in the token’s stability, while cross-platform utility ensures usability across various applications in the ecosystem. By balancing supply reduction with increased demand, LUM creates a sustainable token economy that is adaptable to market needs and offers long-term benefits for both individual users and the broader ecosystem.