Lighter to burn repurchased LIT, first burn planned several weeks after Q2

The protocol said it has bought back about 15.5 million LIT since TGE, roughly 6.3% of circulating supply, while redirecting staking rewards to remaining ecosystem tokens at a 6% annual target.

Summary

Lighter said all LIT tokens it repurchases in the future will be permanently burned, a move that would remove those tokens from circulation. The first burn is scheduled for several weeks after the end of Q2. Since TGE, the protocol said it has bought back about 15.5 million LIT, equal to around 6.3% of circulating supply, and has redirected staking rewards (locking tokens to earn yield) to the remaining ecosystem tokens with a 6% annual target.

Terms & Concepts
  • LIT: The token referenced in Lighter’s buyback and burn plan.
  • TGE: Token generation event, when a crypto token is first issued.
  • staking rewards: Token incentives paid to users who lock assets to support a network or protocol.