# LCT (Liquid Contribution Token)

The **Liquid Contribution Token (LCT)** is a utility token that represents a user’s contribution to a specific funding pool on Contribo.

When someone contributes stablecoins to a pool, an equivalent amount of LCT is minted and sent to their wallet. This token is the sole proof of participation and is required for claiming project tokens after TGE.

Key characteristics:

* **Minted on Contribution**: LCT is automatically issued to [supporters](https://contribo.gitbook.io/litepaper/key-roles/supporters) when they fund a project pool.
* **Transferable**: LCTs can be transferred, sold, or bought on supported marketplaces, enabling secondary liquidity for contribution rights.
* **Redemption Required**: After the project’s TGE and token allocation, users must **burn their LCTs** in order to redeem their share of project tokens. Redemption ratios are set and published by Contribo based on total contributions and received allocation.
* **One-Time Claim**: Once an LCT is burned for [redemption](https://contribo.gitbook.io/litepaper/claiming-rewards-or-refunds), it cannot be reused.

By design, LCT enables flexibility for [supporters](https://contribo.gitbook.io/litepaper/key-roles/supporters) while maintaining transparent and verifiable tracking of participation.
