Introducing LFG: The Unified DeFi Token of the Oraichain Ecosystem

The Oraichain ecosystem is entering a new phase of alignment and efficiency. Over the past five years, Oraichain has pioneered the intersection of AI and DeFi, building technologies that push blockchain utility beyond speculation. Yet as the ecosystem expanded, multiple tokens and applications fragmented liquidity, divided user bases, and diluted the core narrative.

LFG was created to unify Oraichain’s DeFi stack under a single, scalable, and sustainable framework. As the dedicated DeFi-oriented token, LFG consolidates legacy ecosystem tokens and utilities ($MAX, $ORAIX, $AIRI, and $RACKS) into one coherent system, designed for growth, governance, and long-term alignment.

LFG launches alongside its flagship product LFG Perp DEX, a decentralized perpetual exchange, and will gradually integrate across Oraichain’s broader DeFi applications, including liquidity staking, launchpads, and AI-Finance tools. This consolidation ensures deeper liquidity, simpler user experiences, and stronger community alignment across all products.

To sustain the development and growth of LFG, we introduce the tokenomics and its release schedule, committed to long-term building.

1. Supply and Initial Market Cap

2. LFG Allocation

3. Introduce veLFG for Token Utility

At the core of our design is veLFG, a voting-escrow model that empowers holders with governance rights, farming, and boosted rewards. By locking LFG for a chosen duration, users receive veLFG, access to governance, staking, and exclusive ecosystem incentives.

While LFG is mainly used for trading and airdrop, veLFG will be used for the whole utilities of the token:

How does the time-lock affect the amount you receive (veLFG)?

veLFG is a voting-escrow balance minted when you lock $LFG for time. The more and the longer you lock, the more veLFG you receive, and up to a protocol-defined maximum lock.

• Formula (linear model):
• veLFG minted = LFG locked × (lock_duration / max_lock_duration)

For example:

4. Release schedule (2025–2030)

LFG allocations vest gradually through October 2030 to avoid supply shocks. Releases ramp up in 2025–2027 as Community (incl. conversion) unlocks complete, then continue at a steadier pace to 2030 driven mainly by Ecosystem incentives. Smaller tranches for Liquidity & Listing, and LFG Foundation vest on multi-year schedules, producing a smooth, cumulative curve toward full distribution.

Looking Forward

As LFG becomes the unified brand across Oraichain’s DeFi ecosystem, starting with a Perp DEX, its token design is built for long-term commitment and shared growth among all stakeholders. We welcome all existing ecosystem holders, including $MAX, $ORAIX, $AIRI, and $RACKS, into this next chapter.

The LFG conversion mechanism will be published in a different article.