# How does LNT work

Liquid Node Token (LNT) separates assets into **Vesting Token (VT)** and **Yield Token (YT)**.

Users deposit their Node NFT into the **LNT Vault**. The Vault calculates and issues **VT (Vesting Tokens)** based on the vesting schedule and expected future rewards associated with the Node license. Simultaneously, the Vault generates a **YT (Yield Token)** for the user.

The LNT protocol categorizes node rewards into two buckets:

* **Deterministic Rewards**: Pre-defined, calculable yields that users can expect simply by maintaining basic node operation.
* **Non-Deterministic Rewards**: Unpredictable or externally contingent rewards such as bonus fees or airdrops.

Deterministic future token yields are mapped into **VT** tokens for immediate liquidity, while non-deterministic node earnings are captured via **YT** tokens, which are also liquid. Node license NFTs deposited into the Vault automatically receive deterministic native token rewards (T). These rewards are provided for the systematic redemption of VT. Upon maturity, the remaining Ts are redeemable 1:1 against outstanding VTs. Any surplus (non-deterministic) rewards accrue to YT holders.


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