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

• Lighter launched a buyback program using 50% of DEX fees to repurchase LIT tokens, aiming to reduce the circulating supply by up to 3%.
• The buyback initiative has already driven a price surge of 13–37% in LIT tokens as of early January 2026.
• Whale activity, including a $4.86M WBTC-to-LIT conversion, has further reinforced LIT's price momentum.

Lighter's buyback program allocates 50% of protocol fees from its decentralized exchange and future services to on-chain token repurchases. Launched on January 6, 2026, this initiative aims to reduce the circulating supply of LIT by up to 3%.

The Lighter treasury has already repurchased over 180,733 LIT tokens at a cost of $564,609, aligning token value with protocol growth and increasing trading volume to $36M.

The LIT token surged 13.9% in the past 24 hours, reaching approximately $3.04, following onchain signs of protocol-led buyback activity. Lighter confirmed through an official post that the treasury account reflects both protocol revenue and token buyback activity.

What is the buyback program's impact on LIT's price and circulating supply?

The buyback program has driven significant price gains in LIT, with a 13–37% surge observed as of early January 2026. Whale activity, including a $4.86M WBTC-to-LIT conversion, has further reinforced LIT's price momentum.

The Lighter treasury now holds over $548,000 in LIT tokens, signaling transparency and confidence in the token's value. This initiative has already reduced the circulating supply of LIT by up to 3%.

The buyback program channels DEX fees into on-chain LIT repurchases, reducing the circulating supply and aligning token demand with protocol usage. This strategy creates sustained buying pressure and directly links token demand to protocol growth.

Whale accumulation has absorbed selling pressure and encouraged retail investors to enter the market. LIT's price broke out of a consolidation range, reaching $3.10.

What are the implications for long-term token holders and investors?

Lighter's buyback program is a key part of its tokenomics. By allocating 50% of on-chain fee revenue for repurchasing LIT tokens, the protocol creates a deflationary tailwind. With a fixed supply of 1 billion tokens, this buyback mechanism reduces circulating supply and aligns incentives across stakeholders.

The buyback program is funded by the DEX's annualized revenue of approximately $125 million. LIT's supply distribution reinforces its value proposition, with half allocated to the ecosystem, 25% distributed via user incentives, and the remainder reserved for future initiatives.

Lighter confirmed that treasury activity includes both protocol revenue and token buybacks, which can be tracked onchain. The protocol allocates a portion of its 1 billion token supply to fund ecosystem expansion while managing the remaining supply based on revenue and market conditions.

The buyback program reinforces long-term alignment with LIT holders by ensuring that all value generated through Lighter's services accrues to token holders. This approach positions Lighter as a transparent protocol in a competitive market.

What risks should investors be aware of?

Analysts highlight sustained buying pressure and bullish technical indicators, but note that large whale holdings could introduce volatility if sold.

The recent price surge, triggered by public observation of increasing LIT balances in the treasury, attracted attention from traders and observers, signaling financial strength and confidence.

Market participants are closely monitoring on-chain treasury activity for signs of continued buybacks, which could support long-term value creation and investor confidence.

Traders and investors are monitoring on-chain buyback activity and price support levels to gauge the sustainability of the rally.

Lighter's transparency and commitment to token holder value have been emphasized as key factors in this momentum. The protocol's transparency is a critical factor in reinforcing long-term alignment with token holders.

The recent price surge in LIT, driven by the launch of its on-chain buyback program, outperformed the broader crypto market.

Whale activity and institutional investments, including a $68 million funding round, indicate strong market confidence in LIT's long-term potential.

Technical indicators, including the Chaikin Money Flow and Money Flow Index, reflect sustained buying pressure and improved accumulation.

The buyback strategy is designed to create sustained buying pressure by linking token demand directly to protocol usage.