Woofun AI reports that Lighter has revised its token economic model to permanently destroy LIT tokens acquired through future buybacks, with the initial destruction event planned for weeks following the end of Q2 2026. Since the Token Generation Event, approximately 15.5 million LIT tokens, representing about 6.3% of the circulating supply, have been repurchased using exchange revenues.

The protocol will utilize a reserve of 250 million LIT tokens to fund staking rewards starting today, targeting an initial annual yield of 6%. This rate may be adjusted based on market conditions and protocol performance. With a current staking volume of roughly 125 million LIT, approximately 7.5 million tokens are projected for annual distribution. Since the program's launch in January, about 3.72 million LIT have already been distributed to stakers.