LUKSO (LYX): The EVM blockchain powering the future of digital culture

Ethereum’s (ETH) standards for fungible and non-fungible tokens — ERC-20 and ERC-721 — have revolutionized the way crypto users and decentralized apps (DApps) interact. However, over the years, as the demand for more interactivity and security in web3 has increased, these standards' limitations have become more evident. 

LUKSO is a Layer 1 blockchain platform that has introduced its own version of standards for fungible assets and NFTs. This Ethereum virtual machine (EVM)–compatible blockchain has implemented new standards — LSP7 and LSP8 for fungible and non-fungible assets, respectively — that significantly improve the security and flexibility of using cryptocurrencies and tokens on-chain.

Another innovative feature of LUKSO is the Universal Profile, which provides each user with a unified, flexible blockchain identity that can interact seamlessly across platforms and apps.

Using these innovations, the LUKSO chain has positioned itself as a next-gen, decentralized network for creative professionals, brands and social media users. 

In this article, we examine this novel blockchain that some well-recognized names in the lifestyle and fashion industries have already adopted.

Key Takeaways:

• LUKSO (LYX) is a Layer 1 blockchain that offers several innovative features — Universal Profiles and a set of feature-rich token standards — to improve the way users socialize, shop and interact in the digital space.

• The platform targets creators from the lifestyle, gaming, fashion and other industries on the provider side, and social media users on the consumer side.

• LUKSO's native cryptocurrency, the LYX token, is used for governance, gas fee payments and staking.

What is LUKSO?

LUKSO (LYX) is an EVM-compatible, Layer 1 blockchain that unifies users' digital lifestyles, focusing on creative industries and products. LUKSO aims to create a system in which both physical and digital assets can be easily integrated and interacted with across various platforms. In essence, the platform allows creators and consumers to enjoy the ownership and use of various assets, such as non-fungible tokens (NFTs), tokens and even tokenized physical goods across different digital environments.

LUKSO has introduced several innovative token standards, including LSP7 for fungible tokens and LSP8 for NFTs, that are designed to provide better functionality and security than the existing corresponding Ethereum standards (ERC-20 and ERC-721). The platform aims to streamline the way assets are tokenized, transferred and interacted with in the digital world, especially within industries like fashion, gaming and social media.

A key feature of the platform is Universal Profiles — user accounts that allow you to own and develop your unified, feature-rich web3 profile.

LUKSO: Origins and use cases

The LUKSO project was founded in 2017 by German blockchain developer Fabian Vogelsteller and Venezuela-born strategist and innovation consultant Marjorie Hernández. Both co-founders have had notable careers in their respective fields. Vogelsteller was one of the core developers for Ethereum in the blockchain’s early years, and with Vitalik Buterin first proposed the ERC-20 standard. Hernández has had an illustrious innovation and strategy career, and led the Berlin-based innovation lab of Ernst & Young (EY).

The platform’s mainnet was launched in May 2023.

LUKSO's main use cases are focused on creative industries, cross-platform social interaction and identity management. For instance, brands and designers can leverage the chain to create and trade digital assets representing virtual clothing and accessories. This presents opportunities for easy on-chain monetization of products rarely associated with a blockchain environment. Meanwhile, on the social media side, LUKSO helps individuals own and develop their virtual identity through decentralized identity management. This technology can be useful for online reputation systems, credentials verification and cross-platform social media interaction in general.

The LUKSO ecosystem features a wide variety of apps for both creators and consumers. There’s a comprehensive explorer and wallet app, Universal Everything, to help users leverage their Universal Profiles. Another key app is Universal Page — an NFT marketplace and staking solution for LYX, the platform’s native cryptocurrency. In addition, the Universal Swaps app supports token swaps and liquidity provision for LYX and creator-specific tokens. 

The platform’s ecosystem also hosts apps for some of the most well-known brands in the world of fashion and lifestyle, including the acclaimed Karl Lagerfeld fashion powerhouse and the Italian edition of Vogue magazine.

How does LUKSO work?

LUKSO uses the Casper (CSPR) proof of stake (PoS) block validation method, exactly the same model that Ethereum adopted upon transitioning from proof of work (PoW) to PoS in 2022. The chain's block confirmation time is also quite similar to Ethereum's — around 12 seconds. However, the key difference lies in the financial barrier to entry for setting up and running a validator node.

LUKSO requires just 32 LYX (approximately $27) collateral as a staking requirement for validator nodes, in stark contrast to Ethereum, whose far higher collateral requirement of 32 ETH is equivalent to around $59,506 (as of Mar 11, 2025).

Depositing more than 32 LYX doesn’t grant a node any additional rights as compared to other validators. This helps prevent any single validator from acquiring too much influence over the block validation process, and improves the network’s overall decentralization. Similar to the system used on Ethereum, validators are rewarded with block rewards for processing transactions, but if a validator behaves maliciously or remains offline for too long, they can face financial penalties in the form of slashing.

LUKSO standards (LSPs)

LUKSO's standards, known as LSPs, are a key element that sets its platform apart from Ethereum’s and those of other popular PoS chains. The standards are divided into two main types: 

• Interface standards define the set of functions that smart contracts can use in their execution, including those that represent the functions of fungible and non-fungible asset types.

• Metadata standards define the format for data stored in contracts, specifying which data keys to use and how to retrieve information.

LUKSO has created several standards. The most relevant of these for developers are probably LSP7, LSP8 and LSP4, which define the formats for fungible tokens, NFTs and metadata for these asset types (respectively).

LUKSO key features

Universal Profiles

Universal Profiles are LUKSO-based user accounts designed to serve as comprehensive decentralized identities for users during their interactions with different DApps. These profiles can store fungible tokens, NFTs and personalized user information, all easily accessible from a unified source.

Universal Profiles are significantly more flexible and secure than the standard addresses used on Ethereum and other chains. They provide access to features like gasless transactions, fraud detection and on-chain reputation management.

In addition to their superior security features, these profiles can easily be customized to include the user's photo, bio and other personalized details. This allows LUKSO users to establish true digital identities, with richer descriptive features than standard blockchain addresses that contain nothing but a long and rather unattractive set of alphanumeric symbols that are also difficult to remember.

Tokens and NFTs

Fungible tokens and NFTs on the LUKSO network are primarily represented using two critical standards — LSP7 for the former, and LSP8 for the latter.

The LSP7 standard defines the formats and functions for assets on the LUKSO chain. It can be used to create both fungible and non-fungible assets. Items created with the LSP7 standard can be divisible or indivisible, meaning the assets can be divided into fractional parts or not.

LSP7 boasts several advantages over Ethereum's ERC-20 standard: 

• You can attach highly customized metadata to LSP7 tokens. In contrast, ERC-20 tokens can only have very limited metadata associated with them. 

• There are also significant security benefits of LSP7 tokens as compared to ERC-20. For instance, the token standard features functions that notify both sender and receiver when the transaction occurs. This functionality isn’t available in Ethereum's fungible token transfers. 

• Unlike ERC-20 tokens, LSP7 assets can be sent in batch mode.

LSP7, LSP8 and NFTs 2.0

If developers need to create a unique asset (i.e., an NFT), they can use the platform's LSP8 standard, which can also be used for collections in which each item features some distinct identifier — e.g., a collection of 100 digital watches, each with a unique engraving, making it a distinctly identifiable item.

Together, the LSP7 and LSP8 standards are paving the way for NFTs 2.0, a new generation of unique tokens on the LUKSO blockchain with much higher customizability and flexibility than traditional NFTs. LSP7 and LSP8 allow NFTs to contain updatable, rich metadata, unlike the static metadata ERC-721. While LSP7 is primarily designed for fungible assets, it can support "NFT-like" collections, as long as the items within the collection aren't unique. LSP8, on the other hand, is suitable for unique assets with distinct features. 

Both standards allow NFTs to store far more detailed, customizable data on-chain. In contrast, ERC-721 only stores the name, symbol and ID of an NFT, which can be a problem for NFT holders if NFT marketplaces such as OpenSea close down, since the visual representation of their NFT would disappear along with the platform.

NFTs 2.0 also enable tracking of metadata changes and verifying the creator's account through Universal Profiles, making them more dynamic and less reliant on external sources, such as IPFS or centralized storage.

Mini-Apps

The LUKSO blockchain also features Mini-Apps — small-scale, embedded DApps that are typically integrated into a larger application or website. Using Mini-Apps, users can participate in governance votes, shop directly on a creator’s LUKSO profile, join an airdrop campaign run by a creator and carry out numerous other common crypto-based operations.

What Is the LUKSO crypto token (LYX)?

The blockchain’s native cryptocurrency, LYX, is primarily used for governance, gas fee payments and staking. As of the time of this writing (Mar 11, 2025), LYX has a total supply of nearly 42 million and a circulating supply of around 30 million. The token has no supply limitation, and its supply allocation shares are shown in the chart below.

Source: medium.com/lukso

LUKSO (LYX) crypto price prediction

As of Mar 12, 2025, the LYX token has reached %$0.8624, which is 92.5% lower than its ATH of $11.60 on Jan 17, 2024, and just 1.7% higher than its all-time low (ATL) of $0.8628.

Despite the current downward correction impacting most cryptocurrencies alongside Bitcoin, long-term price forecasts for LYX are mostly bullish.DigitalCoinPrice predicts average prices of $2.92 in 2027 and $4.59 in 2030, whileCoinCodex expects the token to trade at around $0.937 in 2027 and rise to $3.14 in 2030.

Is LUKSO crypto a good investment?

You might consider investing in LUKSO's LYX token based on the following considerations:

• The LUKSO blockchain network has championed several technologies that enable users to create completely new digital lifestyles. These include Universal Profiles and innovative standards (LSP7 and LSP8) that power new creative economies. Innovations like these can drive future growth for the LUKSO platform and its token, LYX.

• LUKSO has seen healthy adoption rates by creators and brands in the lifestyle and fashion industries. There aren't many platforms based on blockchain technology that directly target these sectors, and LUKSO's focus on these lucrative fields can serve as a potential long-term driver for its native LYX token.

Closing thoughts

The LUKSO team is leveraging blockchain technology to introduce innovations that will change the way web3 users interact, shop and spend time in the digital world. Universal Profiles, highly adaptable NFT 2.0 assets and the streamlined tokenization of creative IP are all distinct features that set LUKSO apart from numerous other platforms in the blockchain space.

The LUKSO platform has a distinct value proposition for both creators and consumers. All it needs now is further growth and adoption, particularly in the creative industries and among web3 social media enthusiasts.

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