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Tokenomics

1. What is LIB?​

LIB is the native utility token of the Liberdus network, used for staking, governance, transaction fees, and ecosystem incentives. Liberdus is both a coin on its own network and an ERC-20 token on Polygon and is divisible to 18 decimal places.

2. What is the maximum supply of LIB tokens?​

The maximum supply of LIB tokens is fixed at 210 million. However, due to continuous burning mechanisms, the actual circulating supply will likely be lower.

3. What is a “capped elastic supply model”?​

The LIB token uses a capped elastic supply model, meaning the supply can be inflationary, disinflationary, or deflationary based on network conditions and macroeconomic factors. This ensures that the token supply adjusts dynamically while remaining within the hard cap.

4. What is the utility of LIB?​

Liberdus is used for transaction fees, gas fees, payments, tolls, staking, voting and rewards.

5. How is LIB scarce?​

As previously stated, there can only be 210 million LIB. In reality, this amount of LIB will never be reached due to continuous burning of LIB by network users.

6. What is the token distribution for LIB?​

The token distribution for LIB can be found here.

7. What constitutes a contribution to receive LIB?​

A contribution includes development, security research, protocol improvements, community engagement, and other ecosystem-building activities.

8. Why are there two categories for operating expenses?​

One category is general operating expenses (10%) for business functions, while the 30% allocated to network operations covers incentives for validators, stakers, and liquidity providers.

9. How does LIB’s issuance model compare to other networks?​

To give a very basic summary:

  • Bitcoin: Fixed issuance with a halving event every ~4 years.
  • Solana: Annual 1.5% disinflation rate.
  • Algorand: Fixed periodic mints.
  • Liberdus: Adaptive issuance model that adjusts token supply based on network conditions.

10. Why does Liberdus need an adaptive issuance model?​

Horizontally scaling networks require an issuance model that prevents extreme APY fluctuations. Without adjustments, rewards in bull markets could become excessive, and in bear markets, low token values could make node operation unprofitable.

11. How will Liberdus ensure validator profitability in volatile markets?​

The adaptive monetary policy adjusts token issuance based on network conditions, ensuring validators receive sustainable rewards without overinflation.

12. Why doesn’t LIB have named fractional units like Ethereum’s wei or gwei?​

Currently, all denominations are simply referred to as LIB. However, the network remains open to adopting unique names for fractional units in the future.

13. What role does LIB play in messaging transactions?​

LIB is used to pay transaction fees for messages and token transfers. Users can also set tolls to require payments before receiving messages, which acts as an anti-spam mechanism.