# Protocol Flow

<figure><img src="/files/gRRjlk29ZPSD4HW6UV8X" alt=""><figcaption></figcaption></figure>

1. **Miners Earn Block Rewards**\
   Miners perform Proof-of-Work (PoW) to secure the network and earn block rewards (called "coinbase rewards"). These rewards usually have a waiting period (coinbase maturity) before they can be spent.
2. **Deposit Rewards into a Smart Contract**\
   Instead of waiting for their rewards to mature, miners can deposit them into a **Lithium smart contract**. They choose a lock-up duration (e.g., 2 weeks, 3 months, 6 months, or 12 months) to earn **boosted yields** (up to 25%).
3. **Receive Liquid Mining Tokens (LMTs)**\
   The smart contract issues **LMTs** to the miner. These tokens represent the locked rewards and their maturity value. LMTs are tradable, meaning miners can sell them to others for instant liquidity.
4. **Buy and Sell LMTs on a Marketplace**\
   LMTs are traded in a **decentralized marketplace**. A **Request-for-Quote (RFQ) system** matches buyers (traders) and sellers (miners) based on yield, maturity, and price preferences.
5. **Traders Benefit from LMTs**\
   Traders buy LMTs to earn yields backed by energy (mining). They can hold them until maturity to claim the rewards or use them as collateral in DeFi strategies, unlocking additional financial opportunities.
6. **Rewards Unlock at Maturity**\
   When the lock-up duration ends, the smart contract automatically releases the rewards to the LMT holder. If the LMT was traded, the new owner gets the rewards.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://lithium-2.gitbook.io/lithium-docs/lithium-protocol/editor.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.