Lisk just took a major step in shaking up its tokenomics: the project has started burning 100 million LSK. Once this is wrapped up, the total LSK supply will drop by 25%—from 400 million down to 300 million tokens.

What We Know

Lisk officially confirmed the burn is underway. The planned 100 million LSK burn equals a quarter of the current circulating supply, cutting the overall token pool from 400 million to 300 million. This is one of the most direct moves a project can make to impact the available token supply.

Context

Token burns are a common play in crypto, where a chunk of tokens is taken out of circulation for good. For LSK holders, this means total supply on the Lisk network is shrinking; how things play out next depends on how the burn is executed and what the team does from here.

What’s Next

The burn process has already kicked off, and the Lisk community will be watching for updates as it unfolds. The headline right now: a confirmed 25% supply cut after burning 100 million LSK, straight from the project’s official announcement.