Lithos Documentation

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Initial Supply and Emissions Schedule ​

Total Initial Supply: 50,000,000 LITH

Initial LP (2% - 1,000,000 LITH) ​

Initial liquidity provision to seed core trading pairs on Plasma at launch. This minimal allocation ensures basic market functionality while the protocol transitions to its POL-driven model.

Liquidity Incentives (5% - 2,500,000 LITH) ​

Dedicated allocation for ongoing liquidity incentives, including the Bribe-Match Program where the protocol matches external bribes to amplify incentives for strategic liquidity pools.

MM + CEX (5% - 2,500,000 LITH) ​

Market maker partnerships and centralized exchange listings to ensure proper price discovery, reduce volatility, and provide additional liquidity venues for LITH trading.

Ecosystem Growth Fund (10% - 5,000,000 LITH) ​

Ecosystem growth fund is used primarly for marketing partners, liquidity incentives for larger liquid funds and ve groups.

Airdrop (5% - 2,500,000 LITH) ​

Locked allocation for community airdrops to reward early supporters, Plasma ecosystem participants, and strategic community building initiatives.

Public Goods Fund (40% - 20,000,000 LITH) ​

The largest allocation, permanently locked to support long-term ecosystem development, grants for projects building on Plasma, research initiatives, and community programs that benefit the broader ecosystem.

Foundation (19% - 9,500,000 LITH) ​

Foundation allocation for operational funding and strategic reserves. A significant portion will be locked in veLITH to align foundation interests with long-term protocol success and generate sustainable revenue through governance participation.

Team (14% - 7,000,000 LITH) ​

Team allocation with 1-year cliff and 2-year vesting schedule to ensure long-term commitment and alignment with protocol success. Covers core team compensation and retention incentives.

All tranches of locked tokens will be transparently verifiable post-launch.

Emissions ​

Phased Launch Strategy ​

Unlike traditional DEX launches, Lithos employs a unique phased approach:

Phase 1: Protocol-Owned Liquidity Period

  • No token emissions initially
  • POL provides base liquidity for core trading pairs
  • Foundation veLITH positions generate revenue for Ignition Program
  • Establishes trading volume and fee generation

Phase 2: Community Governance Activation

  • LITH emissions begin based on community governance decision
  • veLITH holders direct emission rewards to liquidity pools
  • Full ve(3,3) mechanics activated

ve(3,3) Dynamics ​

Once emissions begin, all stakeholders are aligned through ve(3,3) dynamics:

  • veLITH holders — vote for highest volume pools to maximize fee generation or pools with partner bribes, creating positive feedback loops for successful tokens
  • Liquidity Providers (LPs) — receive emissions driven by "Real Yield" metrics and community-directed incentives
  • Traders — benefit from deep liquidity and low slippage across stable and volatile pools
  • Ecosystem Partners — access capital-efficient trading and can incentivize liquidity through the Bribe-Match Program

Emissions Specifications ​

Lithos mirrors Thena’s epoch-based emission model with parameters locked in at launch:

  • Initial weekly emissions: 2,600,000 LITH minted for Epoch 1.
  • Decay schedule: Emissions decrease by 1% each epoch, compounding week over week.
  • Tail emissions: Once the decay schedule reaches 0.2% of the circulating supply, emissions flatten to that floor to preserve long-term incentives.
  • Distribution per epoch:
    • 67.5% to liquidity providers staking eligible LP tokens.
    • 30% distributed as the veLITH anti-dilution rebase.
    • 2.5% routed to the developer wallet for ongoing protocol operations.

Governance retains authority to adjust allocations through future proposals, but any change must respect the anti-dilution guarantees already in place for lockers.

Sustainable Tokenomics ​

Lithos prioritizes long-term sustainability over short-term incentives:

  • Large permanent locks: Significant supply permanently committed to long-term programs
  • Revenue-driven value: Ignition Program creates buying pressure using real protocol revenue
  • Community control: Governance determines emission schedules and parameters
  • Aligned incentives: All participants benefit from protocol success and trading volume growth