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Last update: 11/10/2025
LUCE is a Delegated Proof-of-Stake (DPoS) utility token built on Electra Protocol (XEP). It provides a transparent and algorithmically structured economic model that supports long-term stability, community rewards, and decentralized network participation. LUCE’s design and function are aligned with the principles established in H.R. 3633 – Digital Asset Market Clarity Act of 2025, which defines and distinguishes digital commodities from securities.
Underlying Blockchain: Electra Protocol, a mature, decentralized, and publicly validated network utilizing PoS consensus. Consensus Model: XEP holders stake their coins in decentralized nodes, validating and securing the network. Transparency: All staking and transaction data are verifiable on-chain. Electra Protocol meets the 'mature blockchain system' criteria described in H.R. 3633: it is operational, decentralized, open source, and lacks a controlling entity.
Purpose: LUCE is used to represent delegated stake and participation within the luce.finance ecosystem. Supply: Capped at 50 million LUCE, providing transparent and predictable scarcity. Distribution: No fundraising or public securities offering occurred; LUCE was created as a fixed-supply token for network participation and ecosystem reward mechanisms. Utility: Holders can earn rewards through community engagement, validator support, and participation in LUCE-related incentive programs. LUCE does not convey ownership, profit-sharing rights, or claims on any corporate entity.
Because Electra Protocol does not support on-chain automation, LUCE buybacks are manually executed in accordance with a predetermined algorithmic formula. The reserve is funded exclusively through XEP staking yield from the Electra Protocol network, not from investor deposits or token sales. Buybacks occur at scheduled intervals using publicly verifiable reserve funds. Burn events reduce circulating supply, while a portion of repurchased LUCE is distributed to LUCE Legacy NFT holders as participation rewards. The algorithm governing buyback amounts and timing is fixed and publicly documented, eliminating discretionary influence. These operations are procedural, not managerial. They are carried out mechanically based on transparent mathematical criteria derived from decentralized staking performance.
Under the Digital Asset Market Clarity Act of 2025, a digital asset is considered a digital commodity when: (1) It operates on a mature blockchain system; (2) No single entity controls the network; (3) Its value arises from network functionality rather than the entrepreneurial efforts of others. LUCE satisfies these criteria. Accordingly, LUCE is best categorized as a digital commodity subject to CFTC oversight, rather than as a security under the Securities Act of 1933.
luce.finance is committed to expanding transparency and community oversight as the ecosystem grows. All reserve addresses, buyback transactions, and burn records are publicly viewable. Future enhancements may include multi-signature reserve controls and community verification processes to further distribute operational responsibility.
LUCE functions as a decentralized, utility-driven digital commodity whose economic mechanisms are guided by fixed, transparent rules rather than managerial discretion. Its structure aligns with the intent of H.R. 3633 to provide legal clarity for decentralized digital assets and mature blockchain systems. luce.finance supports responsible innovation, transparency, and compliance with evolving digital-asset regulation.