Unveiling the $LYZI Token: Utility, Tokenomics, and Investment Opportunities for the Tezos Community
26 Apr, 2023
Welcome to our latest blog post, where we dive deep into the exciting world of Lyzi, a next-generation crypto payment solution app, and its native utility token, $LYZI.
As Lyzi gears up for its Initial DEX Offering (IDO) on Tezos through Instaraise IDO Launchpad, it’s time for the Tezos community and potential investors to get acquainted with the $LYZI token, its utility, and tokenomics.
In this comprehensive guide, we will introduce you to the $LYZI token and provide an in-depth look into its utility, the tokenomics behind it, the token burn mechanism, and the upcoming IDO.
$LYZI is the native utility token of the Lyzi ecosystem, serving as the backbone for various in-app use cases, including incentives, cashback, and more.
The token is designed to enhance user experience within the Lyzi app, and will be used, earned, and held in multiple ways by users and merchants alike.
Lyzi’s Connection to Tezos
As a crypto payment solution app, Lyzi is launching its Initial DEX Offering (IDO) on the Tezos blockchain through Instaraise IDO Launchpad.
By utilizing Tezos’ scalable and energy-efficient infrastructure, Lyzi aims to provide a secure, efficient, and versatile payment solution for the cryptocurrency community.
$LYZI Token Use-cases
Secure and Seamless Crypto Payments
$LYZI token will be used for cashback and referral commissions, incentivizing users to make frequent visits to Lyzi’s merchant network and pay using Lyzi Pay.
By offering cashback rewards and referral commissions, Lyzi aims to distribute and democratize $LYZI tokens throughout the community, encouraging users to adopt the app and spend their cryptocurrencies within the Lyzi merchant network.
Staking and Earning Rewards
Lyzi token holders can stake their tokens to earn extra rewards, helping to maintain low selling pressure.
Staking will be available for 3, 6, 9, or 12-month periods, with rewards distributed daily via staking.lyzi.fr.
Payment and Loyalty Benefits
Users can enjoy reduced transaction fees and exclusive cashback offers when paying with $LYZI tokens.
Additionally, the token will be used as collateral for brand-defined loyalty token emissions, allowing users to swap loyalty tokens for $LYZI tokens and enabling brands to hold $LYZI tokens for reduced fees on their loyalty program.
Tokenomics: Buyback, Cliff/Vesting, Unlock, Burn, and Staking
$LYZI tokens may be bought back with other assets like EUR, XTZ, BTC, ETH, USDT/C, BUSD, and TRON. Tokens will undergo a cliff/vesting period when they are frozen and cannot be transferred or received.
An unlock period will follow, during which tokens are released sequentially.
An evolutive burn mechanism will control the number of tokens sent to a burn address based on the number of transactions and usage within the ecosystem.
Vault and Cash Flow Management
Lyzi will exclusively manage a vault for various purposes, such as temporarily increasing staking returns, funding new projects for the ecosystem, and compensating for bugs or fixes.
Cash flow generated by the platform will serve as the liquidity source for Lyzi’s activities.
$LYZI Token Utility: Enhancing the App Experience
$LYZI token is designed to promote user engagement and will be utilized across various use cases, including payment & loyalty, trading, and financial services.
$LYZI token users can enjoy a range of benefits such as:
- Discounted trading fees
- Instant payment at supported Point of Sale locations listed on the LYZI Wallet
- Reduced crypto payment fees
- 1 to 5% cashback on purchases
- Debit card subscription and SEPA operations
- Exclusive NFT rewards
- Access to the dynamic $LYZI staking program
- B2B & B2C incentives for merchants
- Backing loyalty token emissions on LYZI Loyalty
- DeFi applications
- Rewards for account services
- Buyback & burn from fees
- Loyalty point marketplace
The $LYZI token also offers other utilities to further enhance the user experience:
Pay and Use
- Instant PoS solution for merchants
- B2B and B2C loyalty programs for merchants
- Expanding the Lyzi merchant ecosystem
- Euro/Crypto exchange with competitive discounted fees
- User-friendly swaps for seamless trading
- SEPA banking and Mastercard with cashback rewards
- Lombard credit and cashback incentives
- Staking for passive income
- Automated DeFi investments
- NFT rewards for engagement
- Referral programs and incentives for users and merchants
- Token supply: 550,000,000
- Private Sale Price: $0.04
- Initial Market CAP: $3,785,050
- Private Sale Raise: $300,000
- Fully diluted Market CAP: $66,000,000
- Initial Circulating Supply: 31,542,083
The ICO will take place in three phases:
- Private: Ended
- Public 1: 1.92% of the supply, or 10,540,000 tokens
- Public 2: 2.42% of the supply, or 13,310,000 tokens
The token price during the private sale is €0.04, €0.08 during Public 1, and €0.12 for Public 2. Multiple currencies will be accepted for the ICO.
Lyzi will charge a 0.80% to 3% transaction fee for each transaction made through the app. The collected fees will fuel the tokenomics as follows:
- 80% to Lyzi:
- 75% sent to the Vault
- 25% sent to Lyzi’s Cashflow
- 20% to the community:
- 50% burned when the supply is > 500 M
- 50% pushed to Incentive reserve (Staking, Cashback, Loyalty)
- When supply is < 500 M, the burn table above applies, and the burn percentage changes according to the number of weekly transactions
Fees collected from payments made in various cryptocurrencies will be used for buybacks. Lyzi can either convert the collected fees into $LYZI tokens or keep the assets used for payment.
Buyback percentages may change depending on market conditions or during marketing events to promote token and crypto payment adoption.
Burn and Evolutive Burn
Burned tokens will be sent to a wallet without private keys, with a target of 50 million tokens to be burned. Once the target is reached, the burn will evolve according to the number of transactions to modulate the token’s deflation speed.
During this phase, the burn is realized using the transaction fees, with 20% reserved for the community, including the burn.
Dynamic staking allows users to invest their $LYZI tokens in liquidity pools during one or more cycles (30 days each) to collect yields.
The total number of yield tokens available will be split among users based on time and the number of tokens locked.
The number of tokens available as rewards will gradually decrease, with Lyzi having the option to increase the total number of yield tokens before the period ends. Returns are calculated dynamically based on several factors and will only be available once a period is closed.
Vesting: Understanding the Release Timeline
Vesting is the process through which tokens are gradually unlocked and released over a predefined period.
This mechanism ensures that token holders cannot immediately sell or transfer their entire token allocation, thereby preventing potential market manipulation or sudden price drops.
The vesting release timeline is designed to maintain a healthy and stable token ecosystem.
For more details and In-depth Tokenomics and TOken utility for $LYZI, refer to Lyzi’s official Whitepaper: https://lyzi.fr/wp-content/uploads/2023/01/Lyzi-Whitepaper-EN.pdf
Mark Your Calendar
Mark your calendar and set a reminder for May 5th, 2023, as the day when the $LYZI token becomes available for public investment through the IDO on Instaraise IDO Launchpad. Don’t miss out on this opportunity to become a part of the growing Lyzi ecosystem.
For participating in the $LYZI token IDO, Whitelisting will begin this week, so keep an eye out for the announcement on our Instaraise’s Announcement on Telegram and Twitter channel
More details on the IDO participation process, including KYC process, allocation of tokens and contribution limits, will be shared soon.
Stay tuned for updates and make sure you follow the guidelines to secure your spot in the IDO.
Join Instaraise Community channel:➡️ https://t.me/Instaraise
Follow us on Twitter at:➡️ https://twitter.com/Instaraise
Connect with Lyzi:
Meet the Team behind Lyzi: https://blog.instaraise.io/meet-the-team-behind-lyzi-core-team-advisors-and-business-partners/