> For the complete documentation index, see [llms.txt](https://elluminex.gitbook.io/elluminex-lite-paper/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://elluminex.gitbook.io/elluminex-lite-paper/5.-tokenomics.md).

# 5. Tokenomics

**5.1 ELX Token Overview**

The ELX token will be the native token of the Elluminex ecosystem. It will play a pivotal role in driving platform operations, incentivizing user participation, and supporting governance.

**5.2 Token Utility**

* **Gas Fees:** ELX will be used to cover half of the transaction fees on the platform, providing a consistent demand for the token.
* **Staking & Farming:** Users will be able to stake ELX to earn rewards and unlock premium features, such as advanced trading tools and analytics.
* **Governance:** ELX holders will be able to participate in platform governance, voting on key decisions, including fee structures and new feature implementations.
* **Fee Reductions:** ELX holders will receive discounts on trading, staking, and bridge fees, incentivizing long-term holding.
* **Burn Mechanism:** 50% of all fees collected in ELX will be burned, reducing the circulating supply and creating deflationary pressure.
* **Access to Premium Features:** Users can unlock AI-driven insights, portfolio management tools, and access to pre-market opportunities.

**5.3 Fee Structure and Burn Mechanism**

* **Transaction Fees:** A 0.2% trading fee will be applied on the DEX, with 50% payable in ELX. A portion of these fees will be burned to reduce supply.
* **Staking Fees:** Minimal fees for staking operations, with a percentage used to buy back and burn ELX.
* **Burn Mechanism:** A transparent mechanism where 50% of the ELX used in fees will be burned, contributing to the token’s deflationary model.

**5.4 Token Distribution**

<figure><img src="/files/9QVZGCN8XVjK98bt40sj" alt=""><figcaption></figcaption></figure>

* **Total Supply:** 350,000,000 ELX

**Allocation:**

* **Presale:** 50% - 175,000,000 ELX
* **Ecosystem:** 20% - 70,000,000 ELX
* **Liquidity & Listings:** 10% - 35,000,000 ELX
* **Marketing:** 10% - 35,000,000 ELX
* **Team:** 5% - 17,500,000 ELX
* **Buyback Reserve:** 5% - 17,500,000 ELX