Lighter Tokenomics Update: All future repurchased LIT will be permanently burned to reduce total supply

CoinFeed July 1 news, Lighter protocol released a tokenomics update, announcing that all future repurchased LIT will be permanently burned to reduce the total supply of LIT. The first burn will be executed within weeks after the end of Q2. Since TGE, the protocol has programmatically repurchased approximately 15.5 million LIT using exchange revenue, accounting for about 6.3% of the circulating supply. On the staking side, previous staking rewards were supported by pre-TGE revenue, and will now be supported by remaining ecosystem tokens. The staking yield target is an annualized 6%, and based on the current staking amount of about 125 million LIT, approximately 7.5 million LIT will be distributed annually, from the remaining 250 million LIT. The protocol stated that future treasury management will balance four priorities: rewarding long-term stakers, continuously reducing supply through burns, reserving tokens for partnerships and growth initiatives, and maximizing long-term value for token holders.