Lisk has started to burn 100 million LSK, reducing the total supply from 400 million to 300 million

Lisk's official post on X stated that it has begun to burn 100 million LSK tokens, aiming to reduce the total supply of LSK from 400 million to 300 million. This action stems from the successful passage of a DAO proposal. The DAO treasury was originally intended to gradually decentralize and incentivize the Lisk Chain ecosystem.

As Lisk announced the launch of a modern funding operation product driven by its own stablecoin and the impending closure of Lisk Chain, the project proposed full funding for the Lisk project and growth activities by the Onchain Foundation, which has been approved. This allows for the burning of most tokens in the Lisk DAO treasury, significantly reducing the total supply of LSK, limiting future increases in circulating supply, and decreasing ongoing selling pressure.

Specifically, Lisk has begun to burn all tokens belonging to the Lisk DAO treasury from 2027 to 2033, which amounts to 15 million tokens each year from 2027 to 2032, and 10 million tokens in 2033, totaling 100 million LSK. Users holding funds on the Lisk Chain must bridge to Ethereum before the closure on October 31, with withdrawals taking about 8 days, and an additional 3-day waiting period for unlocking and unbonding. Lisk stakers can unlock their staked LSK without penalty.