Wrap LUM
Note: Nothing on this page, or any other page of our documentation constitutes or should be taken as financial advice. Please consult with a registered financial advisor. Follow the law, folks.
Last updated
Note: Nothing on this page, or any other page of our documentation constitutes or should be taken as financial advice. Please consult with a registered financial advisor. Follow the law, folks.
Last updated
Users may elect to wrap **** their staked LUX (aka LUM), which converts it to a standardized ERC20 token. Instead of your token amount increasing, the value of wLUM itself increases, thus enabling you to gain the rewards as you normally would with Staking, but without having an increasing amount of tokens in your portfolio.
Users can also unwrap their wLUM tokens to receive the underlying LUM at any time.
In many countries, there is a clear distinction between Income Tax and Capital Gains Tax.
Income Tax applies to regular income, usually received for work done or investments.
Capital Gains Tax applies to money gained from, for example, the sale of an asset like a house or investment.
In many cases, Capital Gains Tax is lower than Income Tax, and so it would be diligent to make it as clear as possible to the taxation authorities of your country or jurisdiction that the income you receive from LUX is a Capital Gain rather than an Income.
Users may wrap their LUM tokens on our dashboard.
The wLUM token price is calculated as follows:
The price of LUM is always equal to the price of LUX, and the Index is a number used to track the value added to a staked token by rebase rewards. Therefore, the price of wLUM will increase as if it were rebasing, without needing to rebase.