4.4 Token Utility

The LQDTY token is a multi-purpose asset within the ecosystem, driving its functionality, governance, and incentives.

Transaction Fee Payments by Deployers
- Gas-Free User Experience (Paid By Sponsor): Deployers use LQDTY tokens to pay transaction fees for authorized users. This innovative fee-shift model encourages mass adoption and lowers the entry barrier for users.
Staking and Rewards
- Participation by Validators and Delegators: Validators and delegators stake LQDTY tokens to secure the network and earn rewards.
- Fixed Rewards Per Epoch: Incentivizes long-term network participation while maintaining economic sustainability.
Additional Rewards & Incentive Mechanisms
- Voting Power: Staked LQDTY tokens generate veLQDTY tokens, which grant holders voting rights in governance proposals and ecosystem decisions.
- Decentralized Decision-Making: Token holders shape the future of LQDTY, influencing upgrades, funding allocations, and new feature integrations.

Ecosystem Incentives
- Grants and Airdrops: LQDTY tokens are distributed as incentives for developers and early adopters to build and grow the ecosystem.
- Liquidity Rewards: Developers and users are rewarded for contributing to liquidity pools and dApps within the platform.

The LQDTY tokenomics strategy is carefully crafted to support the ecosystem's growth, security, and adoption. With its tiered allocation model, transparent vesting schedules, and diverse utilities, the LQDTY token ensures long-term sustainability while aligning incentives across all stakeholders. By combining innovation and economic efficiency,
LQDTY is positioned to become a leading player in the blockchain space.