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Referral & Growth Mechanics

The Lume referral system is an economically sustainable, technically secure, and scalable model of network growth, based on the real, verifiable contribution of referred devices to the infrastructure. It encourages participants not only to attract new users but also to form a network of stable nodes with high-quality channels. The structure is designed so that the rewards for the referrer are always proportional to the actual benefit brought by the referrals to the system.

1. Core Reward Formula

Each time a referred node generates a verified Proof-of-Bandwidth Contribution (PoBC) report, the referrer receives a percentage of its "effective network contribution" — the volume of traffic that has passed cryptographic validation.

Referral reward is calculated using the formula:

R = ER × (B × Q × S)

Where:

  • B — the confirmed volume of transmitted bytes;

  • Q — the channel quality coefficient (0.8–1.3), reflecting the stability of RTT, jitter, and packet loss;

  • S — the node stability coefficient (0.85–1.25), considering uptime and predictability of the RBW profile;

  • EREffective Rate, i.e., the effective referral reward rate (see below).

Thanks to this structure, the referrer earns rewards only based on the actual network contribution, not upon registration.


2. Effective Rate (ER)

The rate is formed from three independent components:

  1. Base Referral Rate (base rate) ER_base = 12%

  2. Stability Boost (boost for stable referral operation)

    • After 7 days of stable operation: +2%

    • After 30 days of stable operation: +5% ER_stab = 2–5%

  3. Growth Scaling (bonus based on the number of active referrals)

Number of Active Referrals
Growth Bonus

1–5

+0%

6–20

+2%

21–50

+3%

51–100

+4%

100+

+5%

ER_growth = 0–5%

Total Maximum Effective Rate:

ER_total = 12% + 5% + 5% = up to 22%


3. Demand Multiplier (DDM)

To align with network load, a dynamic demand coefficient is applied:

DDM ∈ [1.0; 1.5]

It adjusts the final reward when there is increased demand for traffic in a specific region or for specific tasks.

The final referral reward formula, considering demand, is:

R_final = (ER_total × B × Q × S) × DDM


4. Early Referral Epoch Bonus

To stimulate early network growth, a temporary registration bonus is applied:

  • For the first 10 referrals of a user → +3% for each

  • For the entire early wave of participants (first 1000 users) → a permanent +2% to ER

This bonus is fixed at the account level and is not dependent on network conditions.


5. Technical Mechanisms to Prevent Manipulation

The system fully eliminates the possibility of artificially inflating referral rewards through fake devices or artificial loads. Verification includes:

One-way Activation

A referral begins to generate income for the referrer only after successful PoBC cycles.

Network Fingerprint Analysis

Matching:

  • NAT types,

  • TTL time characteristics,

  • routing patterns,

  • entropy of latency profiles.

Faking the fingerprint without a real device is impossible.

Traffic Behavioral Signatures

The algorithm matches the referral's load dynamics with expected behavior models:

  • RBW predictions,

  • volume distributions,

  • time dependencies between packets.

Any anomalies result in zero referral rewards for the period.

IP/Subnet Overlap Detection

If the referral works in the same subnet or via the same NAT as the referrer, the coefficient is reduced or the contribution is not counted.


6. Economic Sustainability of the Model

The mechanism is designed to:

  • Encourage long-term node activity,

  • Maintain network growth without hyperinflation,

  • Reward quality over quantity,

  • Ensure token emission proportional to actual traffic.

Boosts provide users with significantly higher income, but they are activated only when the network receives real utility.


Summary

The Lume referral mechanism is an architecturally refined system, where the participant receives:

  • 12–22% from the contributions of each active referral,

  • Additional income during peak demand (up to 1.5×),

  • Long-term benefits for building a stable network,

  • Protection against inflation through stringent checks of node quality and stability.

This model turns the referral structure into a strategic tool for network growth, rather than just a marketing bonus, and forms the foundation for the long-term, sustainable expansion of the Lume ecosystem.

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