First, we would like to express our deepest gratitude and appreciation to the community for the overwhelming support and approval regarding the LumiWave Independent Mainnet Transition through the 1st community governance vote. Your decision has become a historic first step for LumiWave to evolve from a simple project into a truly independent ecosystem.

To realize this grand vision of mainnet transition, we are now proceeding with the second phase of the approval process regarding the ‘Network Infrastructure Configuration and Long-term Economic Framework (LWP Economic Framework)’. This proposal is a crucial process that goes beyond the stable settlement of the initial network to lay the foundation for the self-sufficiency of the LumiWave ecosystem for decades to come.

1. Proposal Overview

This proposal aims to establish a reward system where LumiWave can secure both security and scalability as an independent mainnet and all participants can grow together.

Securing Mainnet Sovereignty & Infrastructure Advancement: Upgrading LWA to a native coin to secure scalability and building an independent ecosystem capable of directly accommodating large-scale global IPs and Real-World Asset (RWA) services. Establishing a Strategic Validator Network: Maximizing initial network security and securing ecosystem trust through collaboration with global partners and professional operators. Introduction of Sustainable Incentive Mechanism: Providing strong rewards to early participants to accelerate network growth and establishing long-term asset scarcity through step-by-step supply control.

2. Strategic Minting & Reward Structure

LWP adopts the ‘Strategic Supply Inflection Point’ model based on ‘2-year cycle reward optimization’ to achieve long-term value stability while securing initial ecosystem momentum.

This model is designed based on the System Automatic Inflation essential for maintaining the security of the DPoS consensus algorithm, and applies an Annual Maximum Minting Limit (Max Cap) to comply with exchange disclosure standards.

LWP controls inflationary pressure through 2-year cycle reward adjustments based on this formula, guaranteeing overwhelming contribution value to early participants.

The above figures represent the maximum possible circulating range the engine can reach, and actual on-chain minting may be automatically adjusted more conservatively by the system depending on the network participation rate.

3. Reward Allocation

LumiWave Protocol (LWP) sets the reward flow based on routing so that ecosystem expansion can continue in the long term while securing initial network security and operational stability. This structure aims to prevent indiscriminate distribution of rewards into the market, and management of the Operation Vault accumulation and execution is handled transparently under governance principles.

• Network Participation Reward Routing (83%) Routed to operational entities maintaining consensus stability, availability, and data accessibility of the network. ▪️Nodes (90%): Reward flow focused on network operation participation (node operation). ▪️Validators (10%): Reward flow for maintaining consensus security and stability.
• Ecosystem Expansion Routing (17%) An operational track for expander/partner participation, user-based expansion, and ecosystem activation. ▪️Builder & Ecosystem Support (13%): A track for supporting development/operation contribution programs and ecosystem growth. ▪️Community Incentive (4%): Incentive programs for community expansion (e.g., campaigns/airdrops, etc.).

Additionally, the execution of quantities accumulated in the Operation Vault, detailed terms of programs, execution cycles, and transparency reporting are managed through the DAO governance process.

4. Economic Philosophy

Beyond simply listing figures, we strive to include the following project operation philosophies in each value.

• High Risk, High Reward: Breaking the security threshold We aim to provide the strongest rewards (34.41%) to the community that takes responsibility for the initial security of the network, betting on the uncertainty of the initial mainnet transition. This is an expression of our will to quickly break through the ‘security threshold’ by encouraging early validator participation.
• Orderly Exit of Supply: Establishing long-term scarcity Adjusting reward quantities every 2 years is a promise to increase asset scarcity over time. By gradually reducing the speed of supply, we aim to create an environment where the asset value for early participants can trend upward in the long term.
• Transition to a Self-Sustaining Economy: Entry into a mature network When the inflation rate reaches the 4.41% level at the end of the roadmap, LWP enters a period where ‘service fees within the ecosystem’ become the main driver of rewards rather than new minting. This signifies the completion of a healthy protocol that operates on its own even without artificial rewards.

5. Operating Principles

LWP adheres to the following principles for transparent and stable network operation.

• Reward Routing and Distribution Management Rewards are distributed according to the routing structure of network participation and ecosystem expansion, and quantities accumulated in the Operation Vault are executed step-by-step through the DAO approval process.

• Proof of Contribution Operation Vault execution is proposed based on contributions to network operation and ecosystem growth rather than simple holding, and is approved through DAO voting.

• Step-by-step Decentralization Roadmap In the early stages, priority is given to network stabilization and establishing a core operating system, after which operation and execution rights are gradually transferred to community-centered governance.

• Compliance with Transparent Disclosure Major executions and changes are maintained to be traceable through governance records.

6. Next Steps

All LWA holders are invited to participate in the governance vote via https://snapshot.box/#/s:lumiwavedao.eth Due to Snapshot’s technical limitations with Sui, LumiWave will issue an ERC-based DAO voting mirror token that reflects LWA holdings at a 1:1 ratio.

This mirror token:

• Is for voting purposes only
• Does not impact actual LWA balances or economics

To participate, an ERC-20 compatible personal wallet (e.g., MetaMask) is required. Centralized exchange (CEX) wallets are not supported by Snapshot.

For detailed, step-by-step instructions on how to migrate your tokens, please refer to the guide below: 👉 https://medium.com/lumiwave/lumiwave-protocol-node-validator-governance-vote-token-migration-guide-382cd924c070

Further details regarding:

• Mirror token distribution
• Eligibility requirements
• Voting schedule will be shared through upcoming announcements.