> For the complete documentation index, see [llms.txt](https://docs.benancelabs.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.benancelabs.com/readme.md).

# BENANCE LABS

Welcome to the Benance Labs, the labs where we transform $BENANCE token into a premium scarcity and yield layer in Terra Classic ecosystem.

## How Benance Labs Work?

### Economic Architecture

<figure><img src="/files/LIn6kiy3ghXgHyk8dlel" alt=""><figcaption></figcaption></figure>

#### Benance as Economic Layer

Primary role :&#x20;

* Core ecosystem asset
* Governance asset
* Burn engine

#### CZY as Scarcity and Yield Layer

Primary role:

* Premium scarcity asset
* Yield-bearing token

#### LUNC as Settlement Layer

Primary role:

* Reward distribution currency
* Trading settlement asset
* Revenue source for staking incentives

### The Mechanisme

Benance Labs allows users to :&#x20;

* Burn $BENANCE and Forge/mint $CZY (CZ yield token)
* Stake $CZY and earn yield as $LUNC native token

### **Mint Curve**

$CZY has five progressive mint cuve, designed to increase scarcity over time and reduce emission speed in later stages.&#x20;

<figure><img src="/files/cRJ4gCd6ANHLMtFwONhI" alt=""><figcaption></figcaption></figure>

<table><thead><tr><th width="104.79998779296875">Stage</th><th>Burn Cap</th><th>Mint Ratio</th></tr></thead><tbody><tr><td>One</td><td>100B $BENANCE</td><td>1 $CZY : 1M $BENANCE</td></tr><tr><td>Two</td><td>250B $BENANCE</td><td>1 $CZY : 1.5M $BENANCE</td></tr><tr><td>Three</td><td>500B $BENANCE</td><td>1 $CZY : 2M $BENANCE</td></tr><tr><td>Four</td><td>1T $BENANCE</td><td>1 $CZY: 2.5M $BENANCE</td></tr><tr><td>FIve</td><td>2T $BENANCE</td><td>1 $CZY : 3M $BENANCE</td></tr></tbody></table>

As burn milestones increase, minting CZY becomes progressively more expensive.

### Yield Layer

$CZY holders gain access to additional ecosystem benefits beyond simple ownership and trading :&#x20;

1. **Stake CZY — Earn LUNC**

Users can stake CZY tokens to earn $LUNC as native token on Terra Classic as rewards generated by [CZ trading tax](/tax-token.md#czy-tax). This creates a real yield model backed by trading activity rather than inflationary token emissions

2. **CZY Buyback**

CZY tokenomics include periodic CZY buyback operations powered by dual ecosystem tax revenues :&#x20;

* $CZY and $BENANCE trading tax&#x20;

### How To Stake CZY?

After forge/buy CZY token on the labs/market, user can stake CZY token on <https://benancelabs.com/labs>&#x20;

<figure><img src="/files/cMj3Vd2A6Opmlw99zI9a" alt=""><figcaption></figcaption></figure>

#### Unstake Duration

CZY has 3 days unlock period, after unstake the token user need to wait until the unlock period ended to release the token into user wallet.

<figure><img src="/files/G0997PI8mWJjMWthfpnG" alt=""><figcaption></figcaption></figure>

### APR Explanation

APR is primarily calculated based on the total amount of LUNC rewards available in the staking pool contract. The available rewards are streamed over a 30-day period, and the resulting reward rate is used to estimate the annual percentage return for stakers.

Whenever a new deposit is added to the rewards pool, the streaming period is reset and a new 30-day reward distribution cycle begins based on the updated rewards balance.

There are two types of APR estimations:&#x20;

1. **APR Based on Lab Price** - Estimated APR calculated using the current [mint price ratio](#mint-curve) of the Lab. This reflects the projected return based on the value at which CZY is minted within the Lab ecosystem.
2. **APR Based on Market Price** - Estimated APR calculated using the current market price of CZY. This reflects the projected return based on the real-time trading value of CZY on the open market.

### Staking Rewards Pool Source

The staking rewards pool is funded by [CZY trading taxes](/tax-token.md#czy-tax). These taxes are collected in the [Fee Collector wallet](https://finder.terraclassic.community/columbus-5/address/terra1tpeqv6vkkg77dv7v9zutfquem2p6l6dvwg07m8) and are automatically deposited into the staking rewards pool once the balance reaches a threshold of 10,000 $LUNC.


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