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How can I reduce the amount of storage LumaFusion is using

While the LumaFusion app is surprisingly small for the amount of functionality it provides, it can over time use a large amount of storage for media in your projects. Here are some ways to reduce the storage LumaFusion is using.

Backup Older Projects and Delete Their Imported Media

If you have projects that you are no longer working with, first use the Export->LumaFusion Project Archive to backup those projects to some external location (cloud storage, external drive, etc). This way you'll have all of the media and the timeline if you ever need them in the future.
In the Imported library select any clips that are no longer in use and tap on the Delete button. These files will be deleted immediately.

Cleanup Options in the Help-Settings Menu

Turn on Automatic Cache Cleanup for all providers. This will make sure that media that is downloaded automatically is deleted when no longer used.
SelectCleanup Temporary Files (this function is automatically performed when the app is started)
SelectCleanup Unused Cached Media. This will cleanup any media that is not in use, but was not cleaned up automatically.
SelectCleanup All Cached Media option. This will remove all of the automatically downloaded media. Whenever you open a project that uses this media, LumaFusion will automatically try to download it again.IMPORTANT: If the source of the media (ie: an external drive or internet-based service) is no longer available, then the project may indicate missing media. If you're not sure the media is still available for LumaFusion to re-download, then you should not use this option.

Important Note About 'Other Storage' on your iPad or iPhone

After deleting files, you may find that while LumaFusion's storage use is reduced, that the Other Storage category has increased by the same amount. This indicates that iOS itself is holding on to that storage space rather than releasing it immediately. iOS will free up this space as needed (when you import more media, or write out a movie), but you may see warnings in LumaFusion that there is not enough space available.

To free up this Other Storage immediately, you will need to shutdown and restart your iPad or iPhone. Note that not all Other Storage will be released, iOS will always keep some amount of Other Storage for temporary files it needs, but the amount related to deleted files should be released.