Lighter Protocol has announced a significant update to its tokenomics, stating that all future repurchased LIT tokens will be permanently burned to reduce the total supply. The first burn is scheduled to occur within weeks following the end of Q2. Since the token generation event (TGE), the protocol has repurchased approximately 15.5 million LIT, representing about 6.3% of the circulating supply, using exchange revenue. In addition, Lighter Protocol has adjusted its staking rewards strategy. Previously supported by pre-TGE revenue, staking rewards will now be funded by the remaining ecosystem tokens. The protocol aims for an annualized staking yield of 6%, with around 7.5 million LIT to be distributed annually from the remaining 250 million LIT, based on the current staked amount of approximately 125 million LIT. Future treasury management will focus on rewarding long-term stakers, reducing supply through burns, reserving tokens for partnerships and growth, and maximizing long-term value for token holders.