Lighter Updates LIT Tokenomics With Buybacks and Burns

Lighter, a major decentralized exchange for perpetual trading, announced a significant change to its token model. The platform is now permanently burning LIT tokens acquired through its buyback program. This move aims to reduce the total circulating supply of the asset over time.

The exchange has already repurchased approximately 15.5 million tokens, which accounts for about 6.3 percent of the total supply. By removing these tokens from circulation permanently, the project is focusing on a deflationary approach to its treasury management.

Alongside the burn program, Lighter will now fund its staking rewards directly from the ecosystem reserve. This ensures that users who stake their tokens continue to receive incentives without relying on new emissions. Traders should watch how these changes affect liquidity and supply dynamics in the coming weeks.