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🪙 Supply Details

PropertyDetails
🪙 TokenLAVA
🔢 Token supply1,000,000,000 LAVA
💱 Conversion1 uLAVA = 1 LAVA x 10^-6

Economic Actors and Key Terms 👤​

  • 🛒 Consumers buy Subscription plans in LAVA on-chain to gain access to a diverse set of API ‘specs’ via the Lava Protocol.
    • 💸 Subscription plans are priced by governance, offer a limited amount of compute units and vary by their specs.
    • 🗜️ Specifications or ‘specs’ are governance defined modular objects that specify the types of APIs providers are required to support.
  • 🛎️ Providers stake tokens on individual specs, ensuring the integrity of their service. A minimum direct stake is required to accept delegations from others. Requests are routed to providers via a stake-weight mechanism.
  • ⚖️ Validators stake to secure the network. They create blocks, execute transactions and vote on blocks created by other validators.
  • 💰 Token Holders have the option of staking their tokens to validators, restaking with providers, and participating in on-chain governance.
  • 🏆 Champions create, develop and maintain RPC and API ‘specs’ and software for rewards. They can also contribute to the community by completing bounties.
  • 🔗 Chains deposit token incentives to Lava, rewarding Providers for offering specs to their developers and users.
tip

Providers and validators can be separate entities.

💵 LAVA token has no inflation — Rewards are sourced directly from network revenue​

Lava has a fixed supply of 1,000,000,000. Furthermore, Lava has developed a novel mechanism for bootstrapping demand for the network’s service i.e. RPC and APIs.

🔄 Provider Drop Mechanism​

  • 6.6% of the total supply is distributed on a monthly basis over 4 years to Providers as a reward boost called a Provider Drop.

  • This reserve is a fixed allocation of rewards used to incentivize Providers to join in the early stages of Lava.

  • Depending on paid demand for Lava services, monthly distribution is variable; more paid demand generally results in more reward boosts being distributed.

    • Any unused allocation from the previous month is burned.

As the network draws more and more consumers, the need for the Drops will decrease, as Providers will make the difference from subscription payments.

Parameter% of total LAVA supply
🚀 Provider Reward Boosts (“Provider Drops”)6.6%
🔥 Range of Burn Rate0 - 6.6%