LITH Tokenomics

LITH is the governance and utility token of Lithos. The tokenomics are designed around the ve(3,3) model, aligning incentives across all participants and creating sustainable growth for the Plasma ecosystem.

Community Ownership

• LITH represents ownership of the protocol through ve(3,3) governance.

• Holders who lock LITH into veLITH gain direct influence over emissions, rewards, and ecosystem direction.

• Power rests with the community, not a central entity.

Aligned Incentives

• Traders benefit from deep liquidity and stable pricing.

• Liquidity providers earn trading fees and emissions for supporting pools.

• veLITH holders capture additional value through bribes, protocol revenue, and Ignition rewards.

• The design ensures all groups reinforce each other’s participation rather than competing for value.

Long-Term Commitment

• Extended locks grant greater voting power and higher reward share.

• The system discourages short-term speculation and rewards participants who commit for the long term.

• Sustained governance participation drives consistent liquidity and ecosystem stability.

The model creates a self-reinforcing cycle where governance, liquidity, and trading all grow together under community control.