Economic design

Token allocation, release, and supply

LNGX is the network’s unit of value. The economic stack is described as FIAT Replacement Technology (FReT): a phased allocation schedule paired with the ARCO layer’s ability to adjust effective supply over time. The full specification lives in Lineage: The Living Economy on Zenodo.
Two layers, one economy

FReT and LNGX

The token model separates the unit of value from the policy that governs it. LNGX is what moves on the ledger; FReT is the framework that decides how much of it circulates and on what terms.

LNGX

LNGX is the native asset of the Lineage Layer-1, the token miners earn, holders carry, and applications transact in. Its release into circulation follows the phased allocation schedule below, spanning the project’s genesis and early network years.

FReT

FReT is the economic stack around LNGX. It pairs the phased allocation you see below with the ARCO layer’s ability to adjust effective supply and circulation over time, aiming for low volatility without external collateral or game-theoretic levers.

See the ARCO loop on Technology

Allocation schedule

How LNGX is distributed

Allocation is modelled per phase across the early network years (2026-2029). The values below are the Foundation’s working distribution model: the Miners share grows as treasury-funded categories taper, shifting issuance toward the network’s proof-of-work base over time. Figures are in model units, not a final on-chain supply commitment.

Total modelled allocation by phase

Sum of all categories per phase, in model units. Source: Lineage Foundation working distribution model.

33016503303002392662026202720282029
Category2026202720282029
Miners354554101
Treasury1401208080
Founders50353535
Grants50605050
Stakeholders202020
Marketing2020
AI Airdrop Incentives15
Phase total330300239266

Model units from the Lineage Foundation working distribution model. The Miners share can be scaled by a market-demand factor; categories phase out as the schedule progresses (shown here as “—”). Final on-chain allocations are governed by protocol policy.

Economic model

Dynamic supply and ARCO

Supply is managed by ARCO

The working model starts from a supply on the order of 300 million tokens, after which effective supply and circulation adapt over time in response to demand and on-chain state, through the same ARCO (adaptive resource-coordinated) loop used elsewhere in the network: sensor, relay, compute, actuator. The allocation table above is expressed in proportional model units; ARCO governs how the live supply moves from that starting point as markets grow.

Designed for low volatility

The design goals are set out in the working paper Peer-to-peer electronic cash revisited (Andrew Kessler, 2025-05-02, Zenodo), which revisits peer-to-peer electronic cash to aim for low volatility without relying on external collateral or game-theoretic levers. Lineage encodes that stance in on-chain policy and ARCO-driven adjustment rather than off-chain promise alone.

Release model

The phased release model

Allocation is released across distinct phases. Early phases lean on treasury, grants, founder and community categories to bootstrap the network; later phases shift weight toward miners as proof-of-work issuance becomes the dominant source.

  1. PHASE 01 · 2026

    Genesis

    Widest category mix: Treasury (140), Founders (50), Grants (50), Stakeholders (20), Marketing (20), AI airdrop incentives (15), and a starting Miners allocation (35). Phase total: 330 model units.

  2. PHASE 02 · 2027

    Early network

    Miners rise to 45 and Grants to 60 while Founders and Treasury taper (35 / 120). The AI airdrop incentives are complete. Phase total: 300 model units.

  3. PHASE 03 · 2028

    Maturing issuance

    Treasury contracts to 80 and Marketing winds down; Miners continue climbing to 54 alongside steady Grants and Founders. Phase total: 239 model units.

  4. PHASE 04 · 2029

    Miner-led supply

    Miners reach 101, the largest single category, as Stakeholder allocation phases out and issuance concentrates on proof-of-work. Phase total: 266 model units.

  5. BEYOND · ARCO-governed

    Adaptive steady state

    Past the scheduled phases, effective supply and circulation are coordinated by the ARCO layer in response to demand and on-chain state, within protocol policy. There is no fixed forward calendar.

Read the full specification

Lineage: The Living Economy sets out FReT, LNGX, the allocation schedule and the ARCO layer in detail, archived on Zenodo.

Go deeper in the docs

Concepts, the HTTP API reference, and guides for building against a Layer-1 where market policy itself is programmable.