# 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.