- Lighter reveals LIT token structure, outlining airdrops, vesting terms, and ecosystem incentives
- Exchange links protocol revenue, buybacks, and staking utilities directly to LIT
- Early LIT trading begins as Lighter expands beyond perpetuals into spot markets
Lighter has revealed details of its Lighter Infrastructure Token, LIT, as it moves closer to a long-awaited token generation event. According to posts shared by the team on X, the announcement outlines how the token will sit at the center of the exchange’s economic model. Instead of positioning LIT purely as a governance asset, Lighter described it as the main channel for aligning incentives across the protocol.
Token allocation highlights ecosystem focus
Based on the disclosure, 50% of the total LIT supply has been set aside for the ecosystem. This allocation includes an immediate airdrop for participants in the first two points seasons of 2025, accounting for 25% of the fully diluted value.
Additionally, the remaining ecosystem tokens will fund future incentive programs and strategic partnerships, according to the team. In contrast, 26% of the total supply will be allocated to the Lighter team.
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Investors will receive 24%, with both allocations subject to a one-year lockup and a three-year linear vesting schedule. Beyond distribution details, Lighter emphasized how revenue generation will support long-term token value.
According to the announcement, revenues from the decentralized exchange and future infrastructure products will be transparent and trackable onchain. Consequently, those proceeds will be directed toward ecosystem growth initiatives and token buyback programs.
Moreover, the team stated that all value created by Lighter’s products and services will accrue directly to LIT holders. Lighter also highlighted its operational structure, noting that the token is issued through its U.S.-based C-Corp. According to the team, the company will continue to operate the protocol at cost while value flows to token holders.
Staking mechanics and early trading frame LIT rollout
Beyond revenue mechanics, Lighter outlined how LIT staking will shape access to core infrastructure services. According to posts on X, financial transaction systems and fairness verification tools will use tiered access based on staking levels.
Over time, these functions will decentralize progressively as participation across the ecosystem increases. Significantly, the structure reflects a gradual approach to decentralization rather than an immediate transition.
On the market side, Lighter launched the LIT-USDC trading pair early Tuesday. The token traded around $2.34 during early activity, down from a pre-market level near $3.25. However, trading interest followed months of strong growth for the platform.
Lighter launched its public mainnet in October and has since emerged as one of the largest decentralized perpetual exchanges. During November, the platform reported higher trading volume than rivals Aster and Hyperliquid, underscoring its recent momentum.
Additionally, Lighter expanded beyond perpetual contracts by introducing spot trading earlier this month. The exchange also raised $68 million at a $1.5 billion valuation in November, led by Founders Fund and Ribbit Capital.
Altogether, the unveiling of LIT clarifies how Lighter plans to connect user incentives, protocol revenues, and long-term growth.
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