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LEMX Token

Lemon Chain's native asset is called LEMX. LEMX serves as the fundamental utility token of the Lemon Chain platform, functioning as the lifeblood of its ecosystem.

Utility​

1. Security and Consensus: LEMX tokens are used in staking, which is the process of participating in the network's consensus mechanism. Validators, who are responsible for creating new blocks and maintaining the network, must stake a certain amount of LEMX tokens to participate in the network's operations. This incentivizes good behavior; malicious actors stand to lose their staked tokens if they attempt to compromise the network.

2. Transaction Fees: LEMX tokens are used to pay for transaction fees on the Lemon Chain network. When users make transactions or interact with smart contracts on the Lemon Chain network, they pay fees in LEMX tokens.

3. Reward Distribution: Validators and delegators are rewarded for their contributions to the network with LEMX tokens. This incentivizes more users to participate in staking and validation, further securing the network.

In addition to the utility described above, LEMX also represents the influence each node holds in network decisions. You can read more about how the weight of each validator is calculated here.

As mentioned in point 2, each participant aiming to process a transaction on Lemon Chain is required to pay a corresponding fee (often referred to as "gas"). These transaction fees are paid to the validators who help secure the network. However, they don't get the full amount. Here is a breakdown:

  • 50% goes to the validator
  • 50% goes to the foundation