The Mother Chain Advantage: Value Accrual, Buybacks, and Holder Benefits

Let’s start by saying this directly: our entire goal is to strengthen the ORAI ecosystem by tightening value accrual for token holders.

The recent decision to restructure internal resources and consolidate ecosystem applications has received strong feedback and, naturally, questions. This article clarifies the distinct but complementary roles of Oraichain (the mother chain) and LFG (the DeFi execution layer).

It introduces a dual-path value design:

• LFG compounds value within its own business and token economy through utilities, governance, and LFG buybacks.
• A defined share of LFG’s economics accrues to ORAI and ORAI holders through explicit mechanisms — including ORAI buybacks, holder boosts, pre-launch subscriptions, and targeted distributions.

The Value-Accrual Flywheel to ORAI

1. Revenue → ORAI buybacks.

• 50% of LFG net revenue is allocated to market buybacks of ORAI, executed by ORAI DATCO (Distilled AI entity).
• Remaining 50% funds LFG buybacks, supporting LFG’s own token economy by supplementing emissions and minimizing inflation impacts.

2. Holder utility multiplier (2x boost).

• ORAI holders receive a 2x boost when staking LFG, improving yield and access to program rewards.

3. Subscriptions to veLFG.

• Pre-launch veLFG subscriptions deepen long-term alignment while keeping the economic center on Oraichain.

4. Airdrop design.

• LFG distribution programs will recognize and reward long-term ORAI supporters.

Toward the Launch of LFG

A) Pre-launch veLFG subscription (paid in ORAI, for ORAI holders)

• Pool size: USDT 100,000 worth of veLFG, priced 1:1 to LFG at TGE price.
• Payment: ORAI only. “Subscription” means you subscribe to the queue, pay ORAI to purchase veLFG.
• Eligibility and window: ORAI holders may subscribe before TGE.
• Per-wallet cap: up to 500 ORAI, first come first served.
• Delivery and vesting: veLFG is allocated after TGE and vests linearly over 4 months. For veLFG mechanics please read LFG Tokenomics

B) LFG airdrop for ORAI mainnet stakers

Airdrop for ORAI mainnet stakers will be distributed three times based on snapshots

Snapshots:

• ATH of ORAI in 2024: on March 13 2024, exact block TBA.
• ATH of ORAI in 2025: January 8 2025, exact block TBA.
• Current-date snapshot (exact date and block TBA).
• Distribution: within 1 day after LFG TGE.

All airdrop details for included communities will be announced later once ready.

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Roles and Quick Glossary

Mother Chain with Strong Infrastructure

Oraichain secures, coordinates, and scales the core technology stack so dApps like LFG can grow efficiently, while each token economy remains distinct.

Execution and fees

• LFG sub-chain on Oraichain Mainnet provides high-throughput execution for perpetuals and other DeFi features (280K transactions/second & 50mm block time). LFG is the perps engine on Oraichain.
• ORAI is the gas token for the LFG sub-net or sub-chain.

AI infrastructure and agents

• LFG uses Oraichain’s AI blockchain oracle for signals, automation, and risk tooling.
• All AI agents, inference APIs, and datasets consume ORAI.
• LFG pays for DeFi infrastructure, and agents must stake ORAI to operate in the ecosystem.
• This reinforces a simple rule: no ORAI, no AI economy.

Developer stack and data

• AI developer tools include SDKs, model and tooling access, and agent frameworks that accelerate third-party innovation.
• A unified data layer provides real-world and on-chain streams that power analytics, decision support, and AI-driven features for LFG and other dApps.

Why this matters

This stack allows LFG to operate not only as a Perp DEX but fully capabilities on our existing investment into AI X DeFi technologies packaging a next-gen Perp DEX complete with robust AI integrations.

As usage expands, a defined share of LFG’s economics returns to ORAI through agreed mechanisms such as buybacks and holder programs, while LFG retains its own independent business, utilities, and buybacks. As the mother chain, Oraichain is positioned to accumulate value from broader ecosystem adoption without subordinating LFG’s token economy.

In summary:

• Oraichain is the mother blockchain. ORAI is it’s core currency.
• LFG is the DeFi execution layer whose growth channels value back to ORAI.
• Mechanism: 50% of LFG net revenue allocated to ORAI buybacks via ORAI DATCO; the remaining 50% allocated to LFG buybacks.
• Holder advantages: ORAI holders receive 2x boost when staking LFG, pre-launch veLFG subscription access, and targeted LFG airdrops for the ORAI community.

Bottom Line

Oraichain Labs need to reinforce a sustainable value loop for the ecosystem:

LFG drives DeFi growth → revenue returns to ORAI → ORAI strengthens the infrastructure → ecosystem expands again.

That’s the Mother Chain Advantage.