# LUMIA Token

## LUMIA Tokenomics: Understanding the Value Proposition

The LUMIA token is integral to the Lumia ecosystem, underpinning its various functionalities and driving value across its platforms. Here's a breakdown of LUMIA's growing utility in Lumia Stream:

* **Staking**: Users can stake their LUMIA tokens in the veLUMIA module to earn rewards and partecipate in the Governance.
* **Governance**: LUMIA stakers can participate in the governance of Lumia Stream, making decisions on key proposals and choose which pools to reward with LUMIA inflation.
* **Fees**: All protocol fees can be paid in LUMIA, enhancing the token's usage and demand.
* **Liquidity Nodes Delegation**: After depositing LUMIA tokens into the Delta Neutral Liquidity Provisioning (DNLP) system, Liquidity Nodes gain access to the probabilistic assignment of users' trades. This allows them to more effectively manage liquidity and engage in trading activities.
* **Amplified Governance Staking:** Liquidity Nodes will be able to leverage staked LUMIA to facilitate instant settlement of sizable trades with CEX pricing 1:1, enabling an added real yield for stakers.

### **LUMIA utilities in Lumia L2:**

While LUMIA serves as the native currency on Lumia L2, covering transaction fees and enabling ecosystem governance among other utilities, detailed information about its full range of applications can be found in the dedicated [Lumia L2 Gitbook](https://docs.lumia.org/).