A new player has entered the decentralized trading space, with Lighter launching its native cryptocurrency, LIT. This move aims to reshape traditional trading ecosystems by integrating token utility with essential trading services and data verification.
Token Distribution and AirDrop Design
The total supply of LIT is split evenly between the ecosystem and insiders. Half of the tokens are allocated to users, partners, and future incentives, while the remaining half is assigned to the team and investors. Early participants will benefit from an immediate airdrop, converting 12.5 million points gained in 2025 into LIT tokens. This initial distribution accounts for 25% of the project’s fully diluted value, representing the maximum supply should all tokens be issued. The remaining allocation for the ecosystem will be reserved for future rewards, partnerships, and expansion initiatives. Team and investor tokens are subject to a one-year lock-up, followed by linear vesting over three years, as detailed by the project on social media.
Utility Beyond Governance
Lighter promotes LIT as an operational token integral to its exchange functionality. Unlike traditional governance tokens that primarily offer voting rights or passive rewards, LIT grants access to varying tiers of trading execution and data verification services. Users seeking higher service levels must stake increasing amounts of LIT. These requirements are designed to evolve as the network becomes more decentralized, transferring control from a single operator to a broader group of participants. Additionally, market data and price verification fees are also payable in LIT, with staking functioning as a mechanism to ensure data accuracy and minimize risks across the trading system.
On-Chain Revenue Visibility and Token Buyback Flexibility
The project highlights complete on-chain visibility of revenues generated by its trading platform and future offerings. All earnings will be publicly tracked on the blockchain, allowing users to independently verify performance. Management has indicated that these revenues could either support ecosystem growth or facilitate token buybacks from the market. Such buybacks would reduce circulating supply, although no specific timeline is set. Decisions on buybacks will be driven by market conditions and long-term strategic considerations rather than automated rules.
Market Position in Perpetual Trading
Lighter’s activities place it among the most vibrant decentralized perpetual trading venues. Over the past week, Lighter’s perpetuals recorded an average trading volume of $2.7 billion, ranking third behind Hyperliquid and Aster, according to data from a tracker powered by Dune. Currently, Hyperliquid’s HYPE token boasts a market value of $6.26 billion, making it one of the largest digital assets globally. In this competitive landscape, Lighter bets that closely aligning token utility with execution quality, data integrity, and revenue transparency will help it carve out a sustainable role in the evolving on-chain derivatives market.
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