1. Introduction

Lucia Protocol is a cutting-edge, decentralized data attribution and identity verification platform that leverages blockchain technology to provide secure, privacy-preserving services across both Web2 and Web3 ecosystems. Central to its ecosystem is the LCI token, which incentivizes active participation, facilitates governance, and serves as the foundation for profit redistribution. This comprehensive tokenomics document details the mechanisms and incentive structures that drive the value of the LCI token and ensure the long-term success of the Lucia Protocol.

2. Token Utility and Core Mechanisms

Lucia aims to build a permissionless, open, crosschain passport for sharing identity data, which allows companies to advertise better and multiply their return on marketing spend. Our main advantage is that we recognize that most people will not jump through hoops and manually setup their identity card/passport so we create an inverted model where the user without needing any interaction with the platform automatically gets the information collected and segmented together into a crosschain passport.

2.1 $LCI

LCI is the native utility token of the Lucia Protocol, designed to power a decentralized ecosystem focused on data attribution, identity verification, and fraud prevention. LCI provides various utilities that incentivize participation and reward users for contributing to the network.

The LCI token plays a crucial role in enabling various functions within the Lucia Protocol, including:

Identity Verification: Staking LCI tokens is required for participating in decentralized identity verification using the Lucia Cross-Chain Passport.
Data Monetization: Users earn LCI tokens by sharing anonymized data with advertisers, with higher rewards for more valuable or engaged data.
Ad Attribution Validation: LCI tokens are used by validators to ensure accurate attribution of ad engagements while preserving user privacy through Zero-Knowledge Proofs (ZK-proofs).
Transaction Fees: Protocol services incur transaction fees in LCI, a portion of which is burned to reduce token supply.
Governance: LCI token holders influence protocol decisions through voting, shaping the future of the platform.

In future releases, Lucia shall be a permissioned credit protocol that allows any person in the world with only a mobile phone and an internet connection to borrow from Lucia’s blockchain protocol on credit.

2.2 Key Utilities of LCI

Earning Stablecoins: Users can earn LCI by sharing anonymized internet usage data through Lucia Protocol’s data-sharing mechanism. This data is used by advertisers and businesses to gain insights while ensuring the privacy of the data providers.
Sybil Data Query Fees: Developers and businesses pay fees in LCI to query identity data for Sybil detection purposes. This service allows projects to detect and prevent fraudulent activities, such as multiple fake identities being used to exploit airdrops or rewards, enhancing the security and authenticity of the user base.
High ROI on Conversions: By leveraging LCI, businesses can gain deeper insights into customer behavior and market segments, enabling them to create more effective advertising campaigns. This results in higher conversion rates and increased revenue for businesses using Lucia’s ad attribution services.
Conversion Event Incentives: LCI is used to facilitate and reward conversion events. For example, if a new user—previously unfamiliar with decentralized finance (DeFi)—successfully makes their first trade on a Decentralized Exchange (DEX) on the mainnet, this event can be tracked and attributed using Lucia Protocol’s services, creating a valuable data point for businesses.

2.3 Token Overview

Token Ticker	LCI
Token Type	ERC20
Blockchain Explorer and Smart Contract Address	Defined in above section
Max Supply	100,000,000
Initial Circulating Supply	20,000,000
Additional Issuance	Inflation rate for first 2 years post TGE shall be 9%. Inflation rate for year 2 to 4 following TGE shall be 7%. After 4 years, inflation rate shall be 5%.
FDV	$22,860,000
Public Sale Price	$0.2286
Smart Contract Audit Report	In Progress - to be finalized prior to TGE
CEX Listing Partners	MEXC, Coinstore
Target Demographics	All European Union countries, Asia, MENA countries, Southeast Asia, Nigeria, Kenya, Ethiopia, Vietnam, Indonesia

2.4 Release Schedule

Token Allocation	Amount of Token	% of Total Supply	Unlock % at TGE	Cliff Period (months)	Vesting Period (months)
Team	12.5M	12.5%	0%	12	48
Advisor	5M	5%	0%	12	48
Marketing	11.5M	11.5%	0%	1	3
Reserve	34M	34%	0.0043%	0	36
Investors	16M	16%	15%	6	24
Ecosystem Incentive	16M	16%	16.667%	1	48
Public Sale	5M	5%	0%	3	3
TGE	100M	100%	16.6713%	6-12	0-48

2.5 Emissions Chart

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3. Lucia Cross-Chain Passport

The Lucia Cross-Chain Passport is a decentralized identity solution integrated into the Lucia Protocol, allowing users (known as passport holders) to securely manage and link their digital identities across both Web2 and Web3 environments. It is designed to enable seamless identity verification, data attribution, and secure data sharing while preserving user privacy.

The Lucia Cross-Chain Passport allows users to link and manage their Web2 (e.g., social media) and Web3 (e.g., crypto wallets) identities. It serves as a unified, decentralized identity that Passport Holders can use for identity verification, data sharing, and earning rewards. The passport uses ZK-proofs to maintain user privacy while enabling verifiable and secure data transactions.

4. Browser Extension

The Lucia Protocol Browser Extension is a key component of our platform, providing users with a seamless and privacy-preserving way to connect their Web2 and Web3 identities. This extension plays a crucial role in enabling self-attribution and data sharing, empowering users to earn rewards while giving businesses access to valuable, segmented market data.

4.1 Key Features

Self-Attribution Feature: Lucia Protocol empowers users to self-attribute their data and interactions. By using a dedicated browser extension, Passport Holders can connect to a Lucia Blockchain Node and send metadata that enhances advertisers’ market segmentation analysis.
Browser Extension Functionality: The extension provides users with a client interface that links their activities to the Lucia Node. It collects and anonymizes metadata related to user behavior and interactions, which advertisers can use to understand consumer segments better. This metadata remains secure and privacy-preserving, thanks to the integration of ZK-proofs.
Earning Potential in Stablecoins: By participating in self-attribution and sharing their metadata with advertisers, Passport Holders can earn between $2.15 to $3.58 per day in stablecoins. This provides a direct and tangible incentive for users to engage with the protocol and share their data responsibly.
- Lucia Protocol’s attribution business collects fees based off of total impressions, how many conversions we help each of our enterprise customer obtain made possible with our software.
- Mainstream/consumers can accumulate actions on our platform to build up their passport
- Measure loyalty - frequent logins means more credit for in-game purchases, increased airdrop rewards