What is Lighter Protocol (LIT)?

Lighter Protocol is a decentralized perpetual futures trading platform built on Ethereum Layer 2. The public mainnet is live, and anyone can trade derivatives with low latency and relatively low costs. The core pitch is simple but ambitious: fast, CEX-style execution, with results that can actually be verified on-chain instead of taken on trust.

So what role does the LIT token play?

LIT is the native crypto token of the protocol, and it’s already live and trading. It sits at the center of incentives across the ecosystem—team, investors, airdrop recipients, and future growth programs. Points still exist, but they now sit alongside LIT rather than acting as a placeholder for a token that didn’t exist yet.

How is LIT supply structured?

Total supply is fixed at 1 billion LIT. Allocation is split fairly evenly: 26% to the team, 25% to the ecosystem, 25% to airdrops, and 24% to investors. That balance matters. Half the supply is earmarked for users and ecosystem growth, not just insiders, which helps frame LIT as more than a purely VC-driven coin.

What should people know about vesting and unlocks?

Team and investor tokens are fully locked at the start and vest gradually over roughly four years. The first meaningful unlock is still about 349 days away, and it’s relatively small in supply terms. The airdrop allocation, by contrast, is already fully unlocked. That reduces short-term uncertainty but shifts attention to longer-term unlock schedules.

Who backed Lighter financially?

Lighter raised $68 million in a disclosed funding round. Lead investors include Founders Fund and Ribbit Capital, with participation from Haun Ventures and Robinhood. It’s an interesting mix—traditional venture capital alongside crypto-native and fintech players—which hints at how broadly the team wants Lighter positioned.

Was there an ICO or public sale?

Not a classic ICO. Lighter ran an IEO on MEXC Launchpad in December 2025 at a fixed price, while most capital came from private funding and allocations. Beyond that, distribution leaned heavily on airdrops and incentives rather than an open-ended retail sale. It’s a more controlled launch, for better or worse.

Are points still relevant, or is that over?

Points aren’t gone. The private beta program ended in late September 2025, but a new season is active now. Points are distributed weekly and earned through organic trading via the UI or API—no sybil games, no self-trading tricks. At this stage, points feel more like engagement tracking than a promise of future ownership.

Where does LIT actually trade today?

Liquidity is broad and very derivatives-heavy. LIT trades across major centralized exchanges and futures venues, including Binance Futures, OKX, Bybit, Hyperliquid, MEXC, Gate.io, KuCoin, and others. Spot markets exist, but most activity sits in usdt-settled perpetuals, which fits Lighter’s core audience.

What risks are worth keeping in mind?

Regulation is the obvious one—crypto derivatives remain a sensitive area globally. Token unlocks for team and investors will add supply over time, even if they’re spaced out. Competition is also fierce, with established perpetuals platforms already commanding deep liquidity. And finally, activity is still concentrated among professional traders, which cuts both ways.