2.3 Native Token: LQDTY and Its Role

The LQDTY token (LQDTY) serves as the foundation of the blockchain's ecosystem, driving utility, governance, and incentives across all applications.

• Transaction Fee Payments by Deployers: Developers use LQDTY tokens to pay gas fees on behalf of authorized users, enabling gas-free transactions (paid by Sponsor) for end-users. This approach reduces barriers to blockchain adoption while ensuring sustainability.

• Staking and Rewards: LQDTY tokens are staked by validators and delegators in the Proof-of-Stake (PoS)
  consensus mechanism, which secures the network and validates transactions. Stakers earn rewards based on their participation.

• Governance and veLQDTY Tokens: LQDTY token holders can stake their tokens to earn veLQDTY (voting escrow LQDTY) tokens, enabling participation in decentralized governance.
  • Community-Driven Decisions: Token holders vote on protocol upgrades, new feature proposals, and resource allocation.
  • Transparency and Inclusivity: Governance ensures that stakeholders actively
    shape the platform's future.

• Ecosystem Incentives: LQDTY token holders can stake their tokens to earn veLQDTY (voting escrow LQDTY) tokens, enabling participation in decentralized governance. LQDTY tokens are allocated for ecosystem growth initiatives, including developer grants, airdrops, and partnerships. These incentives drive innovation and attract top-tier developers to the platform.