LCF protocol

Protocol explanation

The Protocol involves two main models:

• Linear Cash Flow from Financing (LCFF)

• Linear Cash Flow from Investing (LCFI).

📃 LCFF - allows users to receive financing in the form of cashflow tokens, which can be used to purchase goods and services or exchanged for other currencies.

📃 LCFI - enables users to invest in new projects and ventures, receiving cashflow tokens in return.

By eliminating the need for intermediaries and third-party approvals, Linear Cash Flow provides a simpler, more efficient way of managing project finances.

Linear Cash Flow from Financing (LCFF)

What Is Linear Cash Flow From Financing Activities?

Linear Cash flow from financing activities (LCFF) is a company’s cash flow, which shows the net flows of cash that are used to fund the company. Financing activities include transactions involving debt, equity, and dividends.

A positive figure for cash flow from financing activities means more money is flowing into the company than flowing out, which increases the company’s assets.

Linear Cash Flow from Investing (LCFI)

Linear Cash flow from investing activities includes any inflows or outflows of cash from a company's long-term investments (such as crypto assets - $DPP).

Cash flow from investing activities involves long-term uses of cash. The purchase or sale of a fixed asset like property, plant, or equipment would be an investing activity. Also, proceeds from the sale of a division or cash out as a result of a merger or acquisition would fall under investing activities.