> For the complete documentation index, see [llms.txt](https://lunacy-2.gitbook.io/lunacy-docs/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://lunacy-2.gitbook.io/lunacy-docs/core-concepts/lunar-based-tokenomics.md).

# Lunar-Based Tokenomics

The foundation of Lunacy Protocol lies in its unique approach to token supply management, directly tied to the lunar cycle. This section explains the core mechanics that make Lunacy a revolutionary cryptocurrency.

## The Lunar Cycle Explained

The lunar cycle, also known as a lunation, is the moon's continuous orbit around Earth, which takes approximately 29.53 days to complete. During this cycle, we observe different phases:

* **Full Moon**: Maximum illumination, occurs when the moon is on the opposite side of Earth from the sun
* **Waning Gibbous**: The illuminated portion decreases
* **Last Quarter**: Half of the moon is illuminated
* **Waning Crescent**: Only a small portion remains illuminated
* **New Moon**: Minimum illumination, moon is between Earth and sun
* **Waxing Crescent**: Illumination begins to increase
* **First Quarter**: Half of the moon is illuminated
* **Waxing Gibbous**: Most of the moon is illuminated

## Supply Elasticity Mechanism

Lunacy's supply elasticity is governed by the μ (mu) factor, which correlates directly with the moon's phase:

```javascript
current_token_supply = max_token_supply * μ
```

Where:

* μ (mu) = current lunar phase value (varies from almost 0 to 1)
* max\_token\_supply = 108,000,000 LUNY
* min\_token\_supply = 1 LUNY

#### Understanding μ (Mu) Factor

The μ factor is the core mathematical component that drives Lunacy's supply changes:

* Full Moon: μ = 1.0 (100%)
* Quarter Moon: μ ≈ 0.5 (50%)
* New Moon: μ ≈ 0.000000009259 (minimum to maintain 1 LUNY)

{% hint style="info" %}
The μ factor is calculated using precise astronomical data to ensure accurate supply adjustments.
{% endhint %}