Tokenomics
Overview
Liberdus’s tokenomics are designed to align economic incentives with the network’s horizontally scaling architecture. By leveraging Shardus’s dynamic state sharding and autoscaling the Liberdus network can dynamically expand or contract based on transaction demand, and its tokenomics model must factor this in.
Liberdus employs a capped elastic supply model that ensures network scalability, validator profitability, and long-term sustainability without compromising decentralization. The system utilises issuance and burning to reach a natural equilibrium between supply and demand over time.
For a more comprehensive breakdown of Liberdus’s tokenomics model and design, please see the Liberdus tokenomics page.
LIB Fundamentals
The native token of the Liberdus network is LIB, which also serves as its ticker symbol. LIB functions both as a coin on the Liberdus network and a bridged token on smart contract platforms like Ethereum, BNB Chain, and Polygon.
| Attribute | Detail |
|---|---|
| Maximum Supply | 210,000,000 LIB |
| Divisibility | LIB can be subdivided to 18 decimal places |
| Elastic Supply | Can enter inflationary, disinflationary, or deflationary phases based on network conditions |
| Governance Immutability | The 210M cap cannot be altered, even through governance |
Token Utility
LIB serves multiple roles across the Liberdus ecosystem:
| Function | Description |
|---|---|
| Staking | Users stake LIB to secure the network, validate transactions, and earn rewards. |
| Governance | Holders can participate in on-chain governance decisions. |
| Rewards | Distributed to validators, contributors, and community participants for network activity. |
| Gas | LIB is used to pay transaction fees for both messages and token transfers. |
| Tolls | Users can set tolls for inbound messages. 10% of each toll is burnt as an anti-spam mechanism. |
| Tx Fees Burnt | 100% of transaction fees are burnt, introducing continuous disinflation. |
| Validator Penalties | All slashed tokens from misbehaving validators are permanently burnt. |
The LIB token’s deflationary nature is enforced through constant burning across multiple dimensions- fees, tolls, penalties, and more- ensuring long-term scarcity.
Token Distribution
| Category | Allocation | Amount (Millions) | Distribution Period | Notes |
|---|---|---|---|---|
| Direct Contributors | 25% | 52.5 | 2 years | 2M LIB minted every 4 weeks for development, design, and R&D. |
| Operating Expenses | 10% | 21 | 2 years | 1M LIB minted per period; unused supply redirected to liquidity providers and users. |
| Shardus Token (ULT) Holders | 10% | 21 | 2 years | Distributed to ULT holders post-mainnet to reward early contributors. |
| Other Communities | 25% | 52.5 | 2 years | Airdrops to verified users from partner ecosystems and platforms. |
| Network Operations & Node Rewards | 30% | 63 | Minted as needed | Covers validator incentives, liquidity provisioning, and ongoing development. |
| Total | 100% | 210M LIB | - | Capped, never to be exceeded. |
Important: The maximum supply will never be fully reached, all transaction, toll, penalty, and governance fees are permanently burnt.
Fair Launch & No Private Funding
Liberdus launched fairly: with no private sales, no VC rounds, and no discounted early allocations.
Every LIB in circulation is earned through contribution, node operation, or liquidity provision.
This ensures:
- No early investors or insiders hold disproportionate control.
- Public value creation, not private capture.
- Long-term decentralization and community trust.
Monetary Policy
Liberdus’s monetary policy is designed for scarcity, adaptability, and sustainability.
| Mechanism | Description |
|---|---|
| Capped Elastic Supply | LIB can enter inflationary or deflationary phases depending on network demand, but total supply can never exceed 210M. |
| Autoscaling Alignment | Node rewards automatically adjust to scaling needs- higher network load yields proportionally higher validator incentives. |
| Fee & Burn Coupling | All network activity (messages, transactions, tolls, and governance) burns LIB, maintaining supply balance. |
| Validator Sustainability | Node operators receive consistent, predictable rewards designed to remain profitable even during low-demand periods. |
This ensures that as Liberdus adoption grows, issuance and burning dynamically adjust to preserve economic equilibrium.
Design Considerations
Liberdus’s horizontally scaling architecture introduces unique economic requirements:
- Node profitability must remain stable even as total node count changes.
- Standby nodes must be incentivized to ensure instant autoscaling capacity.
- Issuance and burning must stay in equilibrium to preserve network security and token value.
Unlike vertically scaled systems, Liberdus’s throughput depends on number of nodes, not hardware power.
Maintaining an optimal Standby-to-Active (S:A) ratio is vital.
The adaptive tokenomics model balances this ratio dynamically:
- High profitability → increases standby nodes (boosts scalability).
- Low profitability → reduces standby nodes (conserves resources).
This ensures efficient scaling without excessive inflation or waste.
Adaptive Issuance Model
Liberdus rejected traditional linear or halving-based issuance models (e.g., Bitcoin, Solana) because they:
- Create unpredictable APY fluctuations.
- Undermine validator stability during bear markets.
- Cause wasteful emissions during bull markets.
Instead, Liberdus employs an adaptive issuance model, dynamically maintaining equilibrium between:
- LIB issued and LIB burnt, and
- Node profitability and network scalability.
This design keeps validator rewards competitive, maintains decentralization, and prevents long-term inflationary drift.
Long-Term Sustainability
As adoption grows:
- Transaction and toll burns will exceed new issuance.
- LIB will gradually become ultra-deflationary.
- Node rewards will rely increasingly on organic network activity, not new supply.
This creates a self-reinforcing cycle: Use → Burn → Scarcity → Value ensuring Liberdus’s monetary ecosystem remains sustainable indefinitely.