PANews July 1, news: The Lighter protocol has released an updated tokenomics report, announcing that all LIT from future buybacks will be permanently burned to reduce the total LIT supply. The first burn will be carried out within a few weeks after the end of Q2. Since the TGE, the protocol has used exchange revenue via a programmed buyback mechanism to repurchase approximately 15.5 million LIT, accounting for about 6.3% of the circulating supply. For staking, previously, staking rewards were supported by revenue prior to the TGE; starting immediately, staking rewards will shift to being supported by remaining ecosystem tokens. The target staking APY is 6% annualized. Based on the current staked amount of about 125 million LIT, approximately 7.5 million LIT will be allocated each year, coming from the remaining 250 million LIT.

The protocol indicates that in the future, the treasury management will balance four priority areas: rewarding long-term stakers, continually reducing supply through burns, reserving tokens for partnership arrangements and growth plans, and maximizing the long-term value for token holders.