Lume Coins: Reward Structure

Lume Coins form the economic foundation of the Lume distributed network and serve as the unit of reward for confirmed bandwidth contribution. The distribution model is designed to directly link the quality, stability, and usefulness of the provided traffic to the reward size, ensuring transparency and sustainability of the incentive for network participants.

Each device generates rewards based on Proof-of-Bandwidth Contribution (PoBC) — a cryptographically verified report documenting the actual volume of encrypted data transmitted, channel quality, and node stability. Lume Coin is awarded only after passing full validation stages, excluding the possibility of traffic manipulation or activity emulation.

The reward model is based on a dynamic formula:

LMC = BaseRate × DeliveredBytes × QualityFactor × StabilityIndex × DemandWeight

Where:

BaseRate — the base coefficient defining the cost of one unit of confirmed traffic. It is not fixed: its value is adjusted by Solana smart contracts based on overall network output to maintain inflation control.

DeliveredBytes — the amount of data actually confirmed by PoBC. The system uses statistical noise filtering (retry loss, block-discard, malformed packets), excluding incorrect packets from the calculation.

QualityFactor — a parameter reflecting the suitability of the channel for institutional client requests. It takes into account average RTT, latency fluctuations, retransmission rate, jitter profile, and route sequence. High-quality channels provide 20–40% more rewards for the same traffic volume.

StabilityIndex — a coefficient of the device's stability over time. The model penalizes (lowers the weight of) nodes with:

• frequent disconnects;

• sharp speed degradation;

• aggressive RBW-throttling.

Consistent uptime and stable RBW forecasts improve the result.

DemandWeight — a dynamic multiplier reflecting real demand on the infrastructure side. Lume uses an orchestrator that updates regional demand coefficients every 30–120 seconds — if the load on a specific region increases, participants in that region receive higher rewards. This model reduces excessive competition and redistributes traffic according to institutional partner demands.

Lume Coin accrual does not happen constantly — PoBCs are aggregated into packages, which are sent to Solana every 15–60 minutes. After the aggregation data is published, the smart contract automatically distributes LMC among nodes, linking the reward to their temporary identity. Personal data, IP addresses, and local device metrics never reach the blockchain — records contain only hashed session IDs and aggregated metrics.

The model also uses an anti-manipulation filtering system. Any attempt to artificially inflate RBW, speed up throughput by local traffic throttling, or simulate activity is detected by behavioral algorithms: time dependencies, packet distributions, amplitude fluctuations, and correlations between forecasts and actual bandwidth are analyzed. Nodes found guilty of manipulation receive zero rewards for the corresponding period.

Thus, the Lume Coins reward structure is a technically precise mechanism where the reward size is strictly proportional to the real useful contribution of the participant to the network's operation. This ensures sustainable incentive distribution, alignment of economic and infrastructure interests, and creates long-term value for the Lume ecosystem.