Lighter token economics update: In the future, all repurchased LIT will be permanently destroyed to reduce the total supply

Lighter protocol releases token economics update, announcing that all future repurchased LIT will be permanently destroyed to reduce the total supply of LIT, with the first destruction to be executed within a few weeks after the end of Q2. Since the TGE, the protocol has programmatically repurchased approximately 15.5 million LIT using exchange revenue, accounting for about 6.3% of the circulating supply.

Regarding staking, previously, staking rewards were supported by pre-TGE revenue, and starting today, they will shift to being supported by the remaining ecological tokens. The target staking yield is an annualized 6%, which, based on the current staking amount of approximately 125 million LIT, will allocate about 7.5 million LIT annually from the remaining 250 million LIT.

The protocol states that future treasury management will balance four priorities: rewarding long-term stakers, continuously reducing supply through destruction, reserving tokens for partnerships and growth plans, and maximizing the long-term value for token holders.