1. Abstract.
Life Unit Network (LUN) is a utility token that transforms everyday consumption into a collective and measurable force for sustainability. Through a deterministic formula, value originates from daily monetary volume and is reinforced based on the proportion of sustainable transactions.
The higher the daily monetary volume, the higher the token’s value. What makes LUN different is that from this base price, the token value is further boosted depending on what percentage of that volume comes from purchases of sustainable products.
With this dynamic, LUN rewards users for responsible purchasing behavior and aligns consumption with the planet’s capacity to regenerate.
LUN is used inside a controlled payment ecosystem, but tokens can trade freely on external markets.
2. The Structural Problem
Modern economic systems derive value primarily from aggregate spending volume, regardless of the resource intensity embedded in that spending.
Value growth is proportional to monetary volume.
Monetary volume grow is proportional to consumption.
Consumption is proportional to resource depletion
This creates a structural incoherence:
Value growth becomes proportional to resource depletion, even though natural resources constitute the underlying productive base of economic systems.
Governance can mitigate risk, optimize allocation, and extend durability.
However, the pricing architecture itself remains volume-centric.
As governance discipline matures, the valuation layer inevitably evolves to incorporate the composition of economic activity — not merely its magnitude.
3. The Structural Solution.
LUN operates from a simple premise:
Long-term value creation requires that the composition of monetary volume be reflected in value formation.
Not through penalties.
Not through moral overlays.
Not through substitution of market mechanisms.
But through positive structural encoding in value growth.
When sustainability composition becomes an intrinsic input in economic signaling, governance objectives and pricing architecture converge.
This represents maturation, not disruption.
The system turns sustainability into a self-reinforcing dynamic: the more sustainable consumption occurs, the greater the economic value generated for the users.
The power of the consumer, harnessed to benefit people, planet and profit
More Use + More Sustainable Purchase = Higher Token Price. Every user and every part of the network contribute to adding value just by doing what they do every day: Spending money. Consumers shop as always but knowing that their tokens´ price grow as they spend sustainably, they will progressively shift toward sustainable products. Merchants will adapt to the demand, and producers had no option but to redirect their factories toward sustainability.
4. The Algorithm LUN has three Core Price Engine layers and two System Adjustment Layers
LUN’s intrinsic price is derived from real transactional activity.
Each day, the system calculates a base price by dividing total monetary volume processed through the network by the number of active tokens that circulated during that same period.
Only tokens that actually move are counted. Tokens held idle are excluded from the calculation.
This ensures that price reflects real usage, not speculative holding.
Scarcity is therefore determined by transactional circulation — how many tokens are actively used — rather than including how many tokens are held.
Sustainability Factor (SUS): The SUS factor is a calculated ratio representing the proportion of verified sustainable consumption within total daily transaction volume. Consumers use LUN for regular purchases. The AI system analyzes each transaction receipt and classifies items as sustainable (SUS) or non-sustainable (NOS) according to predefined criteria.
At the end of each day, the total monetary value of SUS-classified purchases is divided by total transaction volume. The resulting ratio constitutes the raw SUS factor.
For example, if 60% of total transaction volume corresponds to sustainable purchases, the raw SUS ratio equals 0.60.
However, this ratio is not applied directly as a 60% increase to the token price.
Instead, the SUS ratio is incorporated into the deterministic price formula as a scaled adjustment coefficient. The effective impact represents a calibrated fraction of the raw ratio, determined by predefined system parameters.
In addition, the SUS component is smoothed through a moving average mechanism that moderates short-term volatility and ensures gradual, structurally consistent price reinforcement as sustainable transaction volume increases over time.
Through this mechanism, sustainability composition influences value growth proportionally and progressively — without creating abrupt or speculative distortions.
Transaction Density
TD measures the pace of real economic activity within the network.
LUN was designed for everyday consumption and high-frequency transactions. Therefore, the number of transactions serves as an indicator of effective adoption and distributed system usage.
Large transactions can inflate daily monetary volume without reflecting broader participation. This may concentrate value growth in a small number of users rather than representing organic ecosystem expansion.
To prevent this distortion, LUN compares the daily TD to the 30-day moving average of TD. This comparison acts as a structural validation mechanism.
If daily TD confirms distributed growth relative to its moving average, the intrinsic price update is validated.
If daily TD does not meet the validation threshold, the system does not apply a new price increase. Instead, the intrinsic price remains at the previously validated level.
This mechanism ensures that price growth reflects sustained, distributed activity rather than isolated volume spikes.
LUN generates revenue through fixed transaction fees, which finance the operation of the system, the expansion of the network, and the returns expected by investors.
Following the same logic that strengthens value growth by incorporating sustainability into economic activity, LUN also optimizes the growth of the network by integrating economically constrained users. Higher income for these users leads to greater participation in the system, higher monetary volume, and greater value for the LUN ecosystem.
Through the analysis of anonymized consumption patterns, artificial-intelligence modules identify users with limited economic access and enable the redirection of a significant portion of LUN’s operational surplus, not the value of the tokens.
Once the previously established profitability milestones for investors have been reached, the model allows a substantial share of the operational surplus to be progressively reintegrated into the ecosystem in order to strengthen economic inclusion and expand opportunities within the network.
In this way, the growth of the system reinforces its own expansion. The legacy of LUN is the creation of an economic architecture in which sustainability, growth, and inclusion reinforce one another.
Currency Basket
To reduce dependence on a single currency and enhance regional stability, LUN’s published reference value incorporates a weighted Basket of Currencies.
The basket currently includes four major currencies with high global transaction volume and international usage: USD, EUR, CNY, and MXN.
Each currency contributes a coefficient derived from its relative participation in global transaction flows and international payment frequency. The weighted aggregation of these coefficients produces a single Basket Coefficient (Bₜ), which moderates exposure to short-term fluctuations in any single currency.
The coefficient is applied multiplicatively to LUN’s deterministic price reference:
Final LUN Value = Vₜ × Bₜ
This adjustment improves regional stability—particularly for Latin American markets—while preserving transparency and mathematical determinism.
Together, these variables tie LUN’s value to both the quantity and composition of economic activity, ensuring that growth reflects distributed participation, sustainability composition, and macro-currency stability within a unified deterministic framework.
5. Governance.
LUN operates as a non-custodial system. Users retain full control of their assets within their own wallets. Wallet providers act as independent third-party entities operating under applicable local financial regulations.
Core economic logic — including price calculation, supply validation rules, and parameter thresholds — is encoded into blockchain smart contracts. These contracts execute deterministically and cannot be altered unilaterally once deployed, except through predefined governance mechanisms.
Artificial intelligence modules operate off-chain to classify transaction receipts and generate sustainability data. The resulting outputs are cryptographically committed and fed into the on-chain price engine. The smart contracts then apply the deterministic formula automatically.
Price adjustments are therefore rule-based and contract-enforced, not subject to discretionary human intervention.
System parameters are transparent and auditable, and any future modifications would require protocol-level governance processes.
As the network reaches operational scale, governance may progressively incorporate structured user participation mechanisms, subject to regulatory and technical feasibility.
6. System Integrity Validation LUN continuously validates the internal coherence of its economic logic through measurable activity indicators.
System integrity is assessed through:
• Number of active users
• Average spending per user
• Transaction density
• Sustainability composition (SUS ratio)
• Circulation versus idle token balance
• Operational surplus reintegration levels
These variables are monitored to ensure that value formation reflects distributed participation, sustainability-weighted activity, and healthy liquidity conditions.
Tokens held idle are tracked separately as indicators of latent network capacity but do not influence immediate price formation.
By validating transactional density, sustainability proportion, and circulation dynamics against predefined equilibrium thresholds, the system confirms that growth is organic, distributed, and structurally consistent.
This validation layer ensures that price evolution and supply adjustments occur only when underlying system conditions align with intended design parameters.
7. Traceability and Impact Measurement. Every transaction processed within LUN carries structured metadata linking monetary movement to sustainability classification variables.
This architecture enables:
Traceability operates at the token-flow and transaction-classification level, not at the individual identity level, thereby preserving user privacy while maintaining systemic transparency.
This framework bridges traditional monetary statistics and ESG/ASG reporting by integrating sustainability composition directly into economic signaling.
8. ASG Alignment: LUN’s sustainability classification matrix incorporates eight measurable ASG dimensions:
Each transaction is evaluated against structured parameters derived from these dimensions. The aggregated results form the sustainability composition signal embedded within the price engine.
This ensures that sustainability is not narrative-based, but quantitatively encoded into value formation.