Lava Network Releases LAVA Token Economics, 6.6% of Tokens Will Be Used for API Provider Rewards

On April 26th, modular blockchain infrastructure developer Lava Network released the LAVA token economics. The total supply of LAVA tokens is 1 billion, and a deflationary mechanism is adopted to attract API providers in the initial stage of the mainnet. Among them, 25% of the tokens will be used for future plans and reward reserves (6.6% of the tokens will be allocated to providers as monthly rewards); 31% of the tokens will be used for research and development, ecosystem protocol maintenance and development; 17% of the tokens will be allocated to investors; and 27% of the tokens will be allocated to early contributors, core teams, advisors, and other contributors.

In addition, validator rewards will decrease linearly as the percentage of LAVA staking increases, and will decrease between 60% and 80%. When the staking ratio reaches 80%, the rewards and half of the subscription fees will be burned, making them no longer in circulation. LAVA token holders can choose to stake their tokens to validators, re-collateralize with providers, and participate in on-chain governance. Users can purchase LAVA subscription plans on the chain to access various API specifications through the Lava protocol. The specifications are module objects defined by the management department, which specify the API types that providers must support. Providers stake tokens on a single specification to ensure the integrity of their services.

Previously, according to Jinse Finance, Lava Network completed a $15 million seed round of financing in February, with HashKey Capital, Jump Capital and Tribe Capital jointly leading the investment.