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Lighter’s LIT Rallies 16% After Protocol Buybacks Go Live

The move channels protocol revenue into on-chain repurchases, sharpening transparency while leaving the ultimate scale of supply reduction dependent on future fee generation.

Overview

  • Fees from Lighter’s DEX are now allocated on-chain between growth initiatives and open‑market token buybacks, per the team’s Jan. 6 confirmation.
  • On-chain treasury balances show roughly 180,000 LIT and about $1.35 million in USDC, providing immediate but limited capacity for purchases.
  • LIT last traded near $3.06, up about 16% over 24 hours, as spot volume jumped more than tenfold to $157.8 million.
  • Derivatives activity accelerated, with CoinGlass reporting an 87% rise in volume to $21 million and a 58% increase in open interest to $1.81 million.
  • Community estimates suggest potential repurchases up to roughly 30 million LIT based on current revenues, though the actual pace remains contingent on sustained usage; LIT has a fixed 1 billion supply with a large airdrop and investor vesting set at launch.