In the wake of a substantial $675 million airdrop, Lighter is facing scrutiny over its token distribution model, which has sparked debate within the cryptocurrency community. Critics argue that the allocation of 50% of the total supply to team members and investors raises red flags for the project's long-term viability. The report expresses concern that such a distribution could lead to centralization and potential market manipulation.
Token Distribution Concerns
The distribution model reveals that 26% of the tokens were allocated to the team, while investors received 24%. Many community members have expressed concerns that these percentages are excessively high, particularly for projects within the decentralized finance (DeFi) space, where equitable distribution is often seen as crucial for fostering trust and engagement.
Comparisons to Rival Platforms
This model has drawn comparisons to the tokenomics of rival platform Hyperliquid, which has been praised for its more balanced approach. Cryptocurrency investor Casa has cautioned potential buyers that they may only see short-term gains from trading. Casa warned that without significant growth in trading volume and user retention, the long-term prospects for Lighter's token could be bleak.
The recent scrutiny over Lighter's token distribution model coincides with Bithumb's decision to place the FIDA token on its delisting watchlist, raising concerns among investors. For more details, see FIDA watchlist.
