Lighter launches native token LIT, allocates half to ecosystem growth

Ethereum-based decentralized perps exchange Lighter has unveiled its Lighter Infrastructure Token (LIT) ahead of the long-awaited token generation event.

In a thread of posts on X late Monday night, Lighter's team outlined the purpose and structure of the LIT token, describing it as a key to "aligning incentives." 

According to the announcement, 50% of the token supply will be dedicated to the ecosystem. This includes an immediate airdrop to participants in the first two points seasons of 2025, representing 25% of the fully diluted value. The remaining ecosystem allocation is set to fund future incentive programs and strategic partnerships, the team said.

The Lighter team will have 26% of the supply while its investors will be allocated 24%, both subject to a one-year lock and three-year linear vesting schedule.

Lighter also said that revenues from its decentralized exchange and future products built on its infrastructure will be transparent and trackable onchain, with proceeds earmarked for growth initiatives and token buybacks.

"The value created by all Lighter products and services will fully accrue to LIT holders," the team wrote. "We are building in the USA and the token is issued directly from our C-Corp, which will continue to operate the protocol at cost."

The team added that its infrastructure for financial transactions and fairness verification will be tiered based on LIT staking, with these functions decentralizing progressively over time.

Lighter officially launched the LIT-USDC trading pair early Tuesday morning. The LIT token was trading at around $2.34 as of 1:55 a.m. ET Tuesday on Lighter, down from its pre-market price of about $3.25.

Lighter, which launched its public mainnet in October, has become one of the largest perps exchanges. It recorded $292.5 billion in trading volume in November, compared to Aster's $259.2 billion and Hyperliquid's $243.6 million, according to The Block's data dashboard.

Lighter has demonstrated strong momentum in recent months. In November, Lighter raised $68 million at a $1.5 billion valuation, led by Founders Fund and Ribbit Capital. In early December, it expanded beyond perpetuals by rolling out spot trading.