Lighter’s LIT Tokenomics Sparks Debate in DeFi Community
Lighter, a rapidly growing on-chain perpetual exchange, has ignited a heated discussion in the DeFi community with the release of its tokenomics for the newly announced Lighter infrastructure token, LIT. The publication has raised questions about what constitutes a fair launch in an increasingly institutionalized on-chain derivatives market. According to the protocol, 50% of LIT tokens will be allocated to users, partners, and growth incentives, while the remaining 50% will be reserved for the team and investors.
The team’s insider allocations are subject to a one-year cliff, followed by a three-year linear vesting period, with 26% allocated to the team and 24% allocated to investors. This has sparked debate among community members, with some praising the transparency around vesting and revenue distribution, while others have questioned the size of the insider allocation. 
Token Distribution and Vesting Period
Lighter confirmed that it had already distributed half of the ecosystem allocation, representing 25% of the total supply, through an airdrop tied to its first two points seasons, which ran throughout 2025. These programs generated 12.5 million points, which were converted into LIT and distributed at launch. The remaining 25% of ecosystem tokens will be reserved for future incentive campaigns, partnerships, and broader growth efforts. In a statement published on X, Lighter said that all value generated by the LIT DEX and future services will accrue to token holders.
Lighter stated that it operates from the US through a C-Corp structure, with revenue from trading and other products visible on-chain and split between growth initiatives and token buybacks depending on market conditions. The company’s announcement has divided sentiment, with some users praising the transparency around vesting and revenue distribution, while others have questioned the size of the insider allocation.
DeFi Community Reaction
Questions have emerged about Lighter’s previous fundraising, as the protocol raised $68 million after launching its public mainnet, and some community members have questioned how this impacted the 24% investor allocation. Independent calculations based on data from DeFiLlama show that the platform processed a continuous 24-hour volume of around $4.3 billion, putting it second only to Hyperliquid on a daily basis. 
Market Performance and Future Outlook
Lighter’s open interest, at around $1.45 billion, is still below that of some rivals, suggesting faster position turnover rather than long-term leverage. Market data suggests that this pattern is more persistent than stimulus-driven, as Lighter also led in seven-day volume, strengthening its position as a high-volume venue favored by active traders. The reactions to LIT have also impacted trading behavior, as blockchain analytics accounts were flagged for opening large leveraged short positions shortly after the tokenomics announcement.
For more information on Lighter’s LIT tokenomics and its impact on the DeFi community, visit https://cryptonews.com/news/lighter-lit-tokenomics-ecosystem-vs-insiders/
