Key Takeaways:
- LIT surged 20% to $2.6, its highest level since January.
- Lighter will permanently burn buyback tokens and revamp staking rewards.
- The token has gained roughly 40% over the past week.
Back
Lighter jumps 20% to $2.6 after tokenomics overhaul adds permanent burns
LIT rose 20% to $2.6 on Monday, a seven-month high, after Lighter unveiled a tokenomics overhaul with permanent token burns and a revamped staking model.
"Buybacks will permanently reduce the LIT supply through burns on Ethereum mainnet," the exchange said in a statement. Lighter has repurchased about 15.5 million LIT, or roughly 6.3% of the circulating supply, since its token launch.
The protocol plans its first burn in the weeks after the second quarter closes. It may burn undistributed LIT rather than the exact repurchased tokens, which it described as "economically equivalent for LIT holders." Separately, Lighter shifted staking rewards funding from pre-TGE revenue to its remaining ecosystem tokens totaling 250 million LIT, targeting a 6% annualized yield. Since launching its staking program in January, the exchange has distributed about 3.72 million LIT, including roughly 170,000 LIT through its fee credits program. With about 125 million LIT currently staked, the target yield would distribute roughly 7.5 million LIT per year.
The rally has lifted LIT roughly 40% over the past week, far outpacing the broader crypto market. Still, the token trades well below its $7.86 record set in December, and whether the new model sustains demand may hinge on trading revenue holding up in the months ahead.
This article is for informational purposes only and does not constitute investment advice.
