LIT Surges 13–37% as Lighter Launches Treasury Buyback Program

• Lighter launched a treasury buyback program using 50% of decentralized exchange (DEX) fees to repurchase LIT tokens, aiming to reduce the circulating supply by up to 3%.
• Whale activity, including a $4.86 million WBTC conversion and a $4 million USDC deposit, reinforced investor confidence.
• Institutional investors holding 13.2 million LIT tokens, valued at nearly $40 million, demonstrated long-term belief in the token.

Lighter's LIT token surged 13–37% in early January 2026 as the protocol launched a treasury buyback program. The initiative uses 50% of DEX fees and future service revenue to repurchase LIT tokens, aiming to reduce the circulating supply by up to 3%. As of early January 2026, the treasury had repurchased over 180,000 LIT tokens at a cost of around $550,000.

Whale activity and institutional interest have further supported the price increase. A $4.86 million WBTC conversion and a $4 million USDC deposit were used to acquire LIT tokens. Institutional and high-net-worth investors also showed strong conviction in the token's potential, with one wallet holding approximately 13.2 million tokens valued at nearly $40 million.

The buyback program is transparent, with on-chain data tracking treasury wallet activity. Lighter confirmed that the treasury account would track both protocol revenue and token buyback activity. As of January 2026, the treasury account, labeled as Account #0, held 180,588 LIT tokens valued at approximately $548,987.

What is the Impact of the Buyback Program on LIT's Price?

The buyback program has contributed to a 13–37% surge in LIT's price to $3.11. By reducing supply and creating sustained buying pressure, the program aligns token value with protocol growth. Whale and institutional activity, including a $10 million USDC deposit to acquire 3.44 million LIT tokens, further indicated strong belief in the token's future value.

What Are the Key Risks or Limitations of the Program?

While the buyback program has improved technical indicators and reinforced investor sentiment, analysts caution that large whale holdings could introduce volatility if sold. Whale activity, while bullish, could also act as a downside risk if concentrated positions are liquidated.

What Is the Long-Term Vision for the Buyback Strategy?

Lighter emphasized that the treasury account would track both protocol revenue and buyback activity, reinforcing transparency and long-term alignment with token holders. The program aims to create sustained buying pressure and reduce the circulating supply by up to 3%. A portion of the 1 billion total token supply has been set aside to fund ecosystem expansion, with the rest managed based on revenue and market conditions.

Lighter's buyback strategy reflects its commitment to long-term growth and token holder value. Whale and institutional activity has further reinforced investor confidence, with the treasury account accumulating over 180,000 LIT tokens valued at around $550,000. As of January 6, 2026, the treasury held 180,733 LIT tokens valued at $564,609.