Litentry LIT currency is issued by which country?

As the native token of Litentry's decentralized identity ecosystem, LIT facilitates transactions, provides collateral, enables governance, and unlocks access to various services and applications.

Jan 03, 2025 at 01:57 am

Key Points:

• Litentry is a decentralized identity (DID) aggregator and blockchain middleware that allows users to control their digital identities across multiple blockchains and services.
• LIT is the native token of the Litentry network and is used for various functions within the ecosystem.
• Litentry is developing a range of tools and services to enhance the utility of its DID solutions, including a distributed identity wallet, a reputation system, and a decentralized application (dApp) store.

1. Issuance of LIT

Litentry's LIT token was issued by the Litentry Foundation, a non-profit organization based in Singapore. The LIT token is an ERC-20 standard token built on the Ethereum blockchain.

2. Functions of LIT

The LIT token serves several important functions within the Litentry ecosystem:

• Transaction Fees: Users pay LIT to cover transaction fees for using Litentry's DID services, such as registering or verifying identities.
• Collateral: LIT is used as collateral for staking by identity verifiers, who earn rewards for verifying the authenticity of digital identities.
• Governance: LIT holders can participate in the governance of the Litentry network through voting on proposals and electing representatives to the Litentry Council.

3. Distribution of LIT

The initial distribution of LIT tokens included:

• 70% allocated to the public through token sales
• 15% allocated to the Litentry team and early contributors
• 15% reserved for ecosystem development and partnerships

4. Supply and Tokenomics

• Total Supply: 100,000,000 LIT
• Circulating Supply: 33,785,679 LIT (as of October 2023)
• Burn Mechanism: A portion of the transaction fees collected on the Litentry network is used to burn LIT tokens, reducing the overall supply over time.

5. Use Cases for LIT

Beyond its core functions, LIT is being integrated into various applications and services within the Litentry ecosystem:

• DID Wallet: Users can store their verified digital identities and interact with decentralized applications through the Litentry DID wallet.
• Reputation System: The Litentry network is developing a reputation system that will allow users to build and maintain their reputation based on their identity and transaction history.
• dApp Store: Litentry plans to launch a decentralized application (dApp) store that will feature DID-enabled applications and services.

6. Partnerships and Collaborations

Litentry has forged partnerships with various blockchain projects and organizations, including:

• Ethereum Foundation
• Polkadot
• Axie Infinity
• Aragon

7. Roadmap and Future Plans

Litentry's roadmap includes plans for:

• Expanding DID services to support more blockchain platforms
• Implementing a cross-chain identity infrastructure
• Developing decentralized KYC and AML solutions
• Launching the Litentry dApp store

FAQs:

Q: What is the difference between a fungible and non-fungible token (NFT)?

A: Fungible tokens, like LIT, are interchangeable and can be easily traded or exchanged with one another, while NFTs are unique and non-interchangeable, often representing ownership of digital assets or collectibles.

Q: What are the advantages of using decentralized identity (DID)?

A: DIDs provide users with greater control over their personal data, eliminate the need for intermediaries, and enhance the security and privacy of online interactions.

Q: Why is the LIT token important for the Litentry ecosystem?

A: LIT is the native utility token of the Litentry network, used for transaction fees, collateral, governance, and access to premium services.