LISK is governed by a global community through its native crypto asset: LSK

1. Purpose of $LSK

$LSK is designed to fuel the Lisk ecosystem, serving multiple functions within its Layer 2 infrastructure:

A. Security & Governance

• Staking & Validation: Lisk utilizes a Proof-of-Stake-based mechanism where validators and delegators stake $LSK to secure the network and validate transactions.
• Decentralized Governance: Token holders participate in governance by voting on network upgrades, protocol changes, and ecosystem funding decisions.

B. Ecosystem Incentives

• Developer & Builder Incentives: Grants and funding programs are available to encourage developers to build dApps, tools, and infrastructure on Lisk.
• Liquidity & Adoption Rewards: $LSK is used to bootstrap liquidity, incentivize DeFi participation, and reward early adopters in high-growth regions like Africa, Southeast Asia, and Latin America.

1. $LSK Distribution

A. Community Allocation (82%)

Lisk prioritizes community-driven initiatives, ensuring decentralization and active participation.

• Airdrops (6%)
  • To encourage adoption and reward early supporters, Lisk distributes tokens through strategic airdrop campaigns, particularly as its Layer 2 ecosystem expands.
• Liquidity & Market Making (4%)
  • Dedicated to ensuring healthy liquidity and reducing price volatility for LSK trading.
• Ecosystem Fund (3%)
  • Supports builders, projects, and contributors that enhance the Lisk network and drive adoption.
• Staking Rewards (10%)
  • A multi-year incentive program to encourage network security and long-term staking participation.
• DAO Fund (18%)
  • Designed to empower community-led initiatives, development, and governance decisions aligned with Lisk’s vision.