Lisk Initiates Burn of 100 Million LSK Tokens to Reduce Total Supply

Lisk has commenced the process of burning 100 million LSK tokens, which will decrease the total supply from 400 million to 300 million. This decision follows the approval of a decentralized autonomous organization (DAO) proposal aimed at enhancing the Lisk Chain ecosystem. The initiative is part of a broader strategy to decentralize funding and incentivize growth within the project.

The burning of tokens will primarily involve those held in the Lisk DAO treasury, with a plan to eliminate 15 million tokens annually from 2027 to 2032, and 10 million tokens in 2033. This move is expected to limit future increases in the circulating supply of LSK and alleviate ongoing selling pressure in the market.

As part of the transition, users with funds on the Lisk Chain are required to bridge their assets to Ethereum before the platform's closure on October 31, 2026. The withdrawal process will take approximately eight days, followed by a three-day waiting period for unlocking and unbonding. Lisk stakers will have the option to unlock their staked LSK without incurring any penalties.

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Source: KLEA News