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Home Articles Lighter Unveils LIT Token, Details Utility, Allocation, and Roadmap

Lighter Unveils LIT Token, Details Utility, Allocation, and Roadmap

Simon Simba
Simon Simba
Simon is a writer with five years experience in crypto and iGaming. He currently works as a freelance writer at BanklessTimes where he focuses on simplifying daily crypto developments for readers. He discovered crypto in 2022 while writing news about NFTs for a news website in the US, and has since written for two other international NFT projects, and a Web3 gaming agency.
Updated: December 30th, 2025
Editor:
Joseph Alalade
Joseph Alalade
Editor:
Joseph Alalade
News Lead and Editor
Joseph is a content writer and editor who has actively participated in crypto for over 6 years. He enjoys educating others about Web3 and covering its updates, regulatory developments, and exciting stories.

Lighter has pulled back the curtain on its LIT token, outlining how the asset will power its ecosystem, who will receive supply at launch, and where the project wants to take its trading infrastructure next.

How LIT Works 

The team frames LIT as an infrastructure token that ties incentives together for traders, liquidity providers, developers, and institutional users on Lighter.

All economic value generated by Lighter’s products, including fees from its perpetual DEX, will be routed back to LIT holders through on-chain revenue sharing and protocol-level buybacks.

https://twitter.com/i/status/2005862682608472263

LIT will also sit inside Lighter’s data and pricing stack. Validators and data providers stake the token to secure market feeds and validation services. At the same time, clients pay in LIT for access to those feeds, creating a loop between usage and token demand.

Over time, the team wants LIT to become the coordination layer for new products that plug into Lighter’s infrastructure, from advanced order types to institutional connectivity.

Airdrop Design and Roadmap After the Token Launch

Lighter has adopted an even 50–50 split between ecosystem allocation and internal stakeholders. Half of the total supply goes to community-facing initiatives, including airdrops, liquidity incentives, and future growth programs, while the other half goes to the team and investors.

At token generation, 25% of the total supply unlocks immediately for users who earned points in the first two seasons of Lighter’s program in 2025, with the tokens distributed directly to their wallets instead of a separate claim process.

Another 25% of the total supply sits in reserve for future incentives, keeping dry powder available for later growth pushes. Inside the internal bucket, 26% of the supply goes to the team and 24% to investors, both subject to a one-year cliff followed by a three-year linear vesting schedule.

The roadmap includes deeper derivatives features, a mobile trading experience, and upgrades to its prediction and analytics stack that rely on LIT for fees and staking.

The project also plans to publish transparent on-chain revenue dashboards so holders can track how protocol income flows into ecosystem development and buybacks in real time. For traders who spent 2025 farming points and speculating on timelines, the LIT reveal finally shows how their activity converts into a long-term claim on Lighter’s growth rather than a one-off reward cycle.

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Simon Simba
Simon is a writer with five years experience in crypto and iGaming. He currently works as a freelance writer at BanklessTimes where he focuses on simplifying daily crypto developments for readers. He discovered crypto in 2022 while writing news about NFTs for a news website in the US, and has since written for two other international NFT projects, and a Web3 gaming agency.