1. Introduction

Token Name: LVT Capital
Token Symbol: LVTC
Blockchain: Ethereum, Tron and Solana
Token Type: Utility Token
Primary Use Case: The token will serve as collateral in peer-to-peer trading, especially for coins not supported by smart contracts, ensuring secure and trustless transactions on the platform.

2. Total Supply

Total Supply: 1 billion tokens
Rationale: The total supply is capped to ensure scarcity, which drives value as demand for the platform grows.
Minting Policy: No further tokens will be minted after the initial supply to prevent inflation.

3. Initial Distribution

• Team and Advisors: 25% - Locked for 5 years with a vesting schedule to align incentives.
• Platform Reserve: 25% - Reserved for future development, partnerships, and unforeseen expenses.
• Liquidity Provision: 25% - To ensure sufficient liquidity on decentralized and centralized exchanges.
• Ecosystem Fund: 25% - To fund ecosystem growth, the required token to raise decentralized trading limits.

4. Token Utility

• Collateral in P2P Trading: The token will be used as collateral in transactions where users trade coins that are not natively supported by smart contracts. This ensures trustless, secure exchanges and is critical to the platform's functionality.
• Transaction Fees: A small percentage of each trade on the platform will be paid in the token, which will then be partially burned to reduce supply and create deflationary pressure.
• Staking: Users can stake their tokens to earn rewards, which helps secure the platform and encourages token holding.
• Governance: Token holders will have voting rights to influence platform development, changes in transaction fees, and other critical decisions.

5. Demand Drivers

• Platform Growth: As the P2P trading platform expands, more users will need the token to participate in transactions, driving demand.
• Collateralization: The token's role as collateral creates intrinsic demand, especially as more users trade on the platform.
• Deflationary Mechanisms: Transaction fee burns and staking rewards reduce the circulating supply, increasing scarcity over time.

6. Inflationary vs. Deflationary Model

• Deflationary Mechanisms:
  • Tokenb supply cap: The token supply cap will be fixed in time however as the business model of the decentralised trading app grows, demand will outstripe supply.
  • Staking Rewards: Staking rewards will be sourced from a fixed pool, ensuring that no new tokens are minted, which keeps inflation in check.

7. Liquidity and Market Making

• Liquidity Pool Incentives: Incentives will be provided to those who contribute to liquidity pools on decentralized exchanges.
• Market Making: Professional market makers will be engaged to ensure sufficient liquidity on major exchanges, reducing price volatility.

8. Governance Model

• DAO Structure: The platform will transition to a Decentralized Autonomous Organization (DAO) over time, where token holders can propose and vote on changes to the platform. In regards to the future of the token, the detachment from being solely a method of securing a security bond for trading to an openly traded token. This gradual release will secure its place in the future while having secured the growth of the decentralised trading platform.
• Voting Power: Voting power will be proportional to the number of tokens held, incentivizing long-term holding and participation in governance.

9. Future Roadmap and Token Use Cases

• Expansion to Other Platforms: Future use cases might include integration with other decentralized finance (DeFi) platforms, extending the token's utility beyond the P2P trading platform.
• Additional Utilities: As the platform evolves, new utilities for the token might be introduced, such as lending, borrowing, and insurance services.

10. Risks and Mitigation

• Market Volatility: Mechanisms will be in place to manage the volatility of the token's price, such as buyback programs and strategic partnerships.
• Regulatory Risks: The platform will adhere to all relevant regulations, and the token will be structured to minimize regulatory risks.

11. Conclusion

The LVT Capital token is designed to serve as the backbone of the LEV1defi decentralized trading ecosystem, with its primary function as collateral in P2P trades. The tokenomics are structured to ensure sustainable growth, incentivize participation, and align the interests of all stakeholders. As the platform grows, so will the utility and demand for the token, creating a strong foundation for its long-term value.