What is the issuance and circulation of Litentry LIT coins?

Litentry's LIT token serves as the linchpin of the network's operations, facilitating governance, staking, identity management, and transaction fees.

Dec 30, 2024 at 04:17 pm

Key Points:

• Overview of Litentry and its LIT Token
• Initial Distribution and Token Supply
• LIT Token Circulation and Distribution
• Tokenomics and Token Utility
• Lock-up and Release Mechanisms

What is Litentry and its LIT Token?

Litentry is a decentralized identity aggregation network that enables individuals to control and manage their digital identities across various blockchain applications. The LIT token is Litentry's native cryptocurrency, which plays a crucial role in the operation and governance of the Litentry ecosystem.

Initial Distribution and Token Supply

The initial distribution of LIT tokens occurred through a public token sale in June 2021. A total of 100,000,000 LIT tokens were minted, with the following distribution:

• Public sale: 75% (75,000,000 LIT)
• Team and advisors: 15% (15,000,000 LIT)
• Ecosystem and staking rewards: 10% (10,000,000 LIT)

LIT Token Circulation and Distribution

The circulating supply of LIT tokens is approximately 50,000,000 tokens as of March 2023. The remaining 50,000,000 tokens are locked up and will be released gradually over time according to the following schedule:

• Team and advisors: 25% released per year over 4 years
• Ecosystem and staking rewards: Released proportionally to LIT staking rewards

Tokenomics and Token Utility

LIT serves several essential functions within the Litentry ecosystem:

• Governance: LIT holders participate in on-chain governance proposals and voting, influencing the network's development and operation.
• Staking: LIT holders can stake their tokens to secure the network and earn rewards while contributing to its decentralization.
• Identity Management: Users can use LIT to verify their identities and gain access to decentralized applications and services.
• Transaction Fees: LIT is used as a medium of exchange for transactions on the Litentry network.

Lock-up and Release Mechanisms

To ensure the stability and security of the Litentry ecosystem, a portion of LIT tokens is locked up. These locked tokens are released gradually over time to prevent excessive price volatility and encourage long-term support for the network.

FAQs

Q: What is the maximum supply of LIT tokens?
A: 100,000,000 LIT tokens

Q: What is the release schedule for the locked LIT tokens?
A: Team and advisors: 25% released per year over 4 years, while Ecosystem and staking rewards are released proportionally to LIT staking rewards.

Q: What are the use cases for LIT tokens?
A: Governance, staking, identity management, and transaction fees.

Q: Can I purchase LIT tokens on cryptocurrency exchanges?
A: Yes, LIT tokens are available for purchase on several major cryptocurrency exchanges.

Q: How is the Litentry network secured?
A: The Litentry network is secured by the LIT staking consensus mechanism, which incentivizes users to contribute to the network's security and decentralization.