Core Concept

Liquid Node Token (LNT) separates assets into Vesting Token (VT) and Yield Token (YT).

Users deposit their Node NFT into the LNT Vault. The Vault calculates and issues VT (Vesting Tokens) based on the vesting schedule and expected future rewards associated with the Node license. Simultaneously, the Vault generates a YT (Yield Token) for the user.

VT (Vesting Token):

Upon purchasing a node through an INO, participants typically receive a license asset, often issued under the ERC-721 NFT standard. Holding this NFT grants future token entitlements, which are usually distributed over time.

VT tokenizes the future guaranteed native token (T) rewards (Deterministic Rewards)associated with a node license, allowing participants to trade or transfer these rights immediately. Upon maturity, each VT can be redeemed 1:1 for the native token (T). When a user deposits their node license NFT into the LNT Vault, they receive the corresponding amount of VT tokens. To reclaim their NFT license, users must burn the requisite number of VT tokens.

YT (Yield Token):

Beyond the guaranteed rewards represented by VT, node licenses often come with uncertain, variable yields, such as transaction fee revenues or airdrops(Non-Deterministic Rewards). These unpredictable earnings are captured via YT tokens. Each YT represents a claim to one node license NFT. If a user wishes to reclaim their NFT before maturity, they must burn a YT along with the required VT amount. After maturity, burning a single YT suffices to retrieve the NFT without additional VT.YT tokens are fully transferable and tradable on DEXs. Yield calculations and reward distributions are handled automatically by the protocol.