LCF protocol

Protocol explanation

The Protocol involves two main models:

  • Linear Cash Flow from Financing (LCFF)

  • Linear Cash Flow from Investing (LCFI).

๐Ÿ“ƒ 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.

๐Ÿ“ƒ 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 companyโ€™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 companyโ€™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.

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