Lerax is a blockchain platform designed to facilitate the tokenization of Real-World Assets (RWAs). The project aims to bridge traditional financial assets with the decentralized finance (DeFi) ecosystem by representing physical and financial assets as digital tokens on its network. ^[1]

Overview

Lerax was developed to address perceived Inefficiencies within traditional asset markets, such as illiquidity, high barriers to entry for smaller investors, and a lack of transparency in ownership and transfer processes. The platform's core objective is to leverage blockchain technology to create a more accessible, efficient, and liquid marketplace for assets that are typically difficult to trade. By converting the ownership rights of an asset into a digital token, Lerax seeks to enable fractional ownership, allowing investors to purchase and trade smaller portions of high-value assets like real estate or private equity. ^[1]

The project's approach contrasts with traditional asset management by replacing complex legal paperwork and intermediary-heavy processes with smart contracts and a decentralized ledger. This is intended to reduce administrative overhead, lower transaction costs, and shorten settlement times. The platform is positioned as an infrastructure layer for institutions and asset originators to issue, manage, and trade tokenized RWAs in a compliant and secure environment. The governance of the platform is managed through a Decentralized Autonomous Organization (DAO), giving token holders a role in the protocol's future development. ^[1]

Architecture

The Lerax Chain is built using a modular architecture. This design separates the core functions of the blockchain, such as execution, settlement, and data availability, into distinct layers. The stated goal of this approach is to enhance the network's scalability, flexibility, and allow for easier upgrades to individual components without affecting the entire system. ^[1]

Consensus Mechanism

The network operates on a Proof-of-Authority (POA) consensus model. In this system, a select number of authorized nodes, known as validators, are responsible for creating new blocks and validating transactions. These validators are pre-approved entities, a model chosen for its potential to deliver high transaction throughput, low latency, and greater energy efficiency compared to Proof-of-Work systems. The POA model is often utilized in private or consortium chains where participants are known and have a vested interest in maintaining the network's integrity. ^[1]

EVM Compatibility

Lerax is designed to be compatible with the Ethereum Virtual Machine (EVM). This compatibility allows developers to migrate and deploy existing smart contracts and decentralized applications (dApps) from Ethereum and other EVM-compatible chains onto the Lerax network with minimal modifications. This feature is intended to lower the barrier to entry for developers and leverage the established tools, programming languages like Solidity, and developer community of the Ethereum ecosystem. ^[1]

Tokenomics

The native asset of the Lerax ecosystem is the LERAX token. It is designed to serve multiple functions within the platform, including utility, governance, and network participation. ^[1]

Allocation

The total supply of LERAX tokens is allocated across several categories to support the long-term development and growth of the ecosystem. The distribution is as follows:

• Team: 1%
• Node Rewards: 30%
• RWA Reserve: 20%
• Staking Rewards: 10%
• Liquidity pool: 15%
• Ecosystem Fund: 14%
• CEX Listings: 5%
• Airdrop: 5%

This allocation structure is intended to fund ongoing operations, incentivize early backers, foster community engagement, and ensure sufficient liquidity for the token. ^[1]

Utilities

The LERAX token has several primary use cases within the network:

• Transaction Fees: Used to pay for gas fees required to execute transactions and deploy smart contracts on the Lerax Chain.
• Governance: Token holders can participate in the Lerax DAO by proposing and voting on protocol upgrades, changes to network parameters, and the allocation of treasury funds.
• Staking: Users can stake LERAX tokens to help secure the network and participate in its consensus mechanism, earning rewards in return.
• Node Operation: Operating a LERAX Node requires a certain amount of LERAX tokens, which contributes to network security and decentralization. Node operators receive a share of network rewards.

These utilities are designed to create demand for the token and integrate it into the core functions of the platform. ^[1]

Governance

Governance of the Lerax protocol is managed by the Lerax DAO. Any holder of LERAX tokens is eligible to participate in the governance process. To create a formal proposal for a vote, a user must hold a minimum threshold of LERAX tokens. Once a proposal is submitted, all token holders are eligible to vote, with voting power being proportional to the number of tokens they hold. The DAO framework is responsible for decisions related to the protocol's development, treasury management, and strategic direction. The treasury itself is managed through automated smart contracts to ensure transparency and community oversight of the ecosystem's funds. ^[1]

Ecosystem

The Lerax ecosystem is composed of various participants and programs designed to support the network's growth and adoption. Key components include LERAX Nodes, which form the backbone of the network's infrastructure by validating transactions and maintaining the ledger. Node operators are compensated with LERAX tokens for their contributions. ^[1]

To foster community growth and platform adoption, Lerax has established two main initiatives. The LERAX Ambassador Program is a community-focused initiative that rewards individuals for promoting the project, creating content, and engaging with the wider community. The LERAX RWA Partner Program is an institutional-focused initiative aimed at collaborating with asset managers, financial institutions, and other businesses to help them tokenize their assets and launch them on the Lerax Chain. ^[1]

Use Cases

The primary application for the Lerax platform is the tokenization of Real-World Assets. This process aims to bring a variety of traditionally illiquid asset classes onto the blockchain. Potential use cases include:

• Real Estate: Fractionalizing ownership of commercial and residential properties to make real estate investment more accessible.
• Private Equity and Venture Capital: Creating liquid tokens representing shares in private companies or venture funds, allowing for easier secondary market trading.
• Art and Collectibles: Tokenizing high-value art, classic cars, or other collectibles to allow for shared ownership and investment.
• Commodities: Representing ownership of physical commodities like gold or agricultural products as digital tokens.
• Private Debt and Bonds: Tokenizing debt instruments to create more efficient and transparent markets for lending and borrowing.

These applications are intended to unlock liquidity and create new investment opportunities across various sectors of the traditional economy. ^[1]

Partnerships

Lerax has established the LERAX RWA Partner Program to facilitate collaboration with external organizations. The program is designed to onboard institutional partners, including asset managers, financial firms, and other enterprises that wish to tokenize their assets. The objective of this program is to provide technical support, guidance, and a framework for these entities to issue and manage their RWAs on the Lerax Chain. As of the available documentation, the program's structure and goals have been outlined, but specific named partners have not been publicly disclosed. ^[1]