First off, I want to thank the community members for actively participating in the discussions around Stella’s transition to LitLayer across multiple forums.
We are incredibly grateful to see the support and belief shown by the community.
The purpose of this post is to share more details around the rebrand and the tokenomics, both of which are required for LitLayer to grow towards the mission of being the go-to infrastructure powering all perpetual trading in DeFi.
Tokenomics
As a part of the rebrand, there will be a token migration from the current $ALPHA token to $LTLY token in a 1:1 ratio with a max supply of 3 billion The token distribution is as follows :
- Migration from $ALPHA token : 1,000,000,000 $LTLY tokens (For old token holders to swap to the new token)
- Strategic partners : 525,000,000 $LTLY tokens (To onboard strategic partners including liquidity providers and market makers who are key stakeholders to ensure full functionality and scalability of the protocol)
- Ecosystem & community incentives : 725,000,000 $LTLY tokens (To be used to incentivize community with liquidity mining rewards, incentives for developers looking to develop a perp DEX on top of LitLayer stack, and other programs to improve the protocol)
- Airdrop : 300,000,000 $LTLY tokens (To be used for facilitating initial onboarding of new users and new community members)
- Marketing/Security : 450,000,000 $LTLY tokens (To drive product development, security, and marketing in the mid-term and long-term of the project).
Since all the supply will undergo vesting, the circulating supply at the token swap will remain unchanged apart from the airdrop tokens that get distributed to the users.
The complete vesting schedule is shared here for reference.
Changes in token utility
$ALPHA token stakers currently act as a backstop to the protocol while receiving protocol fees in return. Given the low fees earned in the current Stella product, the staking APY for $ALPHA is also low.
The new token post the swap ($LTLY) will derive utility from :
- Staking model to earn infrastructure fees
- $LTLY token holders can stake their tokens to earn a portion of the infrastructure fees generated on LitLayer, paid out in ETH.
- Staking model to adjust fee split between LitLayer and partner protocols
- Perp DEXes powered by LitLayer can stake and commit a certain amount of native $LTLY token to increase protocol fees split from LitLayer to partner protocol (akin to Voting Escrow Model pool voting). Staking a certain amount of $LTLY tokens can give the partner protocol up to 90% of protocol fees sharing.
- Governance
- The $LTLY token will be central to all governance processes for LitLayer.
The new tokenomics has more utility, enabling partner protocols, users, and token holders to engage with as well as benefit from $LTLY utilities.
Product development Status
LitLayer is already in development, and is planned to be launched around September. LitLayer is already in conversation with 10+ perp DEXs looking to build on LitLayer over the coming months.
Any discussions from the community regarding this are welcome on #governance channel on our discord or in our official TG channel.
If you want to raise any concerns privately, feel free to DM me on TG as well (@apoorv99).