Lava Network releases LAVA token economics, 6.6% of tokens will be used for API provider rewards

On April 26, modular blockchain infrastructure developer Lava Network released the economics of its LAVA token. The total supply of LAVA tokens is 1 billion and uses a deflationary mechanism to attract API providers in the initial stage of the main network. Of these, 25% of tokens will be used for future plans and reward reserves (6.6% of tokens will be distributed monthly as provider rewards); 31% of tokens will be used for RD and ecosystem protocol maintenance and development; 17% of tokens will be allocated to investors; and 27% to early contributors, core team members, advisors, etc. In addition, validator rewards decrease as the percentage staked in LAVA increases - they linearly decrease between 60%-80%. When the stake ratio reaches 80%, both rewards and half subscription fees are burned so that they no longer circulate. LAVA token holders can choose to stake their tokens with validators or re-stake them with providers while participating in on-chain governance. Users purchase a LAVA subscription plan on-chain to access various API specifications through the Lava protocol. Specifications are module objects defined by management departments specifying types of APIs that providers must support. Providers pledge their tokens on individual specifications ensuring service integrity.

As previously reported by Golden Finance, in February this year, Lava Network completed a $15 million seed round financing led jointly by HashKey Capital, Jump Capital and Tribe Capital.