Crypto-Economic Framework for Lightcone

Lightcone's crypto-economic framework is designed to incentivise long term participation in the Lightcone Network and support the efficient transaction of energy services among participants. Central to this framework is a dual-token model with $Photon as a utility token, exclusively used for governance and rewards accompanied by $Graviton which facilitates stable, on-chain transactions and serves as the medium of exchange. This dual-token approach allows for the independent pursuit of economic activities and decentralised governance, ensuring a balanced and efficient network.

Primary Utility Token ($Photon)

• Utility Purpose: Governance and rewards.
  • Governance: The governance aspect allows $Photon token holders to actively participate in Lightcone’s decentralised decision making process for future directions of the Lightcone Network. Holders of $Photons have voting (quadratic voting) rights on key proposals, such as protocol upgrades, governance changes, and fund allocations, fostering a community-driven approach to platform development. $Photon holders can submit proposals for new features, modifications, or other strategic decisions, ensuring diverse voices are heard. Governance rights can also be delegated to form collectives or cooperatives, enhancing community involvement. By separating governance from economic transactions, $Photon aligns its value with the network's long-term health.
  • Minting transaction tokens: To use the network, $Graviton tokens are required as gas fees. $Graviton are minted from staking $Photon and both tokens are used to create a stable transaction cost with sufficient liquidity to promote network use.
• Distribution: Distributed to Lightcone participants who create, support, and secure the network. Key recipients of $Photon include:
• Homeowners who provide energy assets such as batteries to the network.
• dApp Developers who build decentralised applications on Lightcone.
• Community Members who suggest improvements to the network.
• Lightcone Network Development Team who suggest and implement improvements to the network.

Transaction Token ($Graviton)

• Utility Purpose: $Graviton is used to pay for energy transactions executed on the Lightcone Network. Each $Graviton is the transaction fee for 1Kwh of energy traded on Lightcone.
• Fixed Value: Pegged to a stable value of USD $0.02 plus an inflation rate of 2% per annum will ensure predictable and stable transaction costs. $Graviton are burned after use.
• Dynamic Minting Mechanism: $Graviton tokens are minted by staking $Photons. The amount of $Graviton generated from staking $Photon is calculated with consideration to the number and staking duration of $Photon, network demand, transaction volumes, cost of $Photon as determined by a defined external Oracle, burn rate and demand of $Graviton. This measure will affect a stable network transaction cost plus inflation target. For example the number of $Graviton minted will increase as the cost of $PinSeeds,. Network activity and $Graviton demand increases.

Treasury

The treasury in Lightcone's crypto-economic framework acts as a central reserve to manage the supply and distribution of $Photon and $Graviton tokens and ensure the network's long-term sustainability. Here’s a summary of its key functions:

• Token Distribution: The treasury holds a significant portion of the total $Photon supply (e.g., 70%) and releases them over time. It distributes these tokens to reward homeowners, developers, and other network participants based on predefined criteria, such as energy contributions or ecosystem development efforts.
• Network Growth: It funds ecosystem expansion by offering grants, rewards, and incentives to developers and participants, encouraging active involvement and network improvements.
• Minting and Inflation Control: The treasury dynamically mints new $Photons as needed, factoring in network demand and growth. It also manages deflationary pressure as $Photons are staked to minting $Graviton. Treasury ensures that there is enough $Photon to satisfy the demand for $Graviton as the network participation and usage grows
• Stabilising the Economy: By acting as a reserve, the treasury can intervene to stabilise the token economy, funding network operations, managing liquidity, and ensuring a stable supply of $Photons to meet network needs.

Rationale for a Two-Token Model