Woofun AI reports that Lighter protocol has updated its token economics, mandating the permanent destruction of all future repurchased LIT to reduce total supply. The first burn event will occur within weeks following the end of Q2. Since the Token Generation Event, the protocol has programmatically repurchased approximately 15.5 million LIT using exchange revenue, representing about 6.3% of the circulating supply.

Staking rewards, previously funded by pre-TGE revenue, will now be supported by remaining ecological tokens. The target staking yield is set at an annualized 6%, allocating roughly 7.5 million LIT annually from the remaining 250 million LIT based on the current staking amount of approximately 125 million LIT. Future treasury management will prioritize rewarding long-term stakers, continuous supply reduction via destruction, reserving tokens for partnerships, and maximizing long-term holder value.