Lisk token printing procedure

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1

Hello, I wanna know how is that every few minutes total circulating supply of lisk token is increasing. On coingecko today: 164 433 827, 2 minutes ago it was 164 433 793. I’m tracking it:

17 Dec: 163 647 094
16 Dec: 163 628 267
12 Dec: 163 577 011

So just in 3 days you printed +805 560 tokens.

In addition after ETH swap total supply drastically went up to 400 000 000 giving you huge space for tokenomics manipulations.

Taking into consideration there aren’t any burning token events it is normal that this inflationary system is unattractive for investors. Recent airdrop will dump the price of token even more. There is no roadmap for 2025 so how you gonna attract new investors if you have nothing to offer?

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2

All the tokens have already been printed. What you’re referring to is the vesting schedule.
You can check all the token unlocks here:
Token unlocks

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3

With the token migration, Lisk changed from an unlimited token supply to a fixed supply of 400 million LSK. This total supply is fixed in the ERC-20 contract for LSK deployed on Ethereum which cannot be upgraded. The contract does not allow creating any new LSK tokens, but only burning existing LSK tokens.

All details around this change, the new token distribution and vesting were shared in this blog post in April 2024. In addition to that, there is a vote in the Lisk DAO that is scheduled to happen this year about burning 100 million LSK of the funds allocated to the Lisk DAO treasury which would reduce the total supply to 300 million LSK. You can also check this technical documentation on our GitHub for the onchain implementation of the vesting. By checking the respective deployment addresses, you can also see how many LSK tokens are locked in each of the contracts and can be unlocked at the moment.

How Coingecko is tracking the total circulating supply is basically by taking the total maximum supply (400 million LSK) and subtracting:

  • all LSK in any of the deployed vesting contracts
  • all LSK in the staking or airdrop smart contracts
  • all LSK in wallets controlled by project-related entities (e.g., Onchain Foundation, Lisk Ltd.)

See also the methodology of Coingecko:

For tokens issued on smart contract platforms, we calculate the Circulating Supply by deducting locked tokens from Total Supply. Locked tokens may include Foundation’s Fund, investors’ locked tokens, team’s locked tokens etc. The addresses of these locked tokens are obtained from the token teams.

The bigger changes in circulating supply, can therefore, for instance, be due to:

  • The Lisk Ltd. / Onchain Foundation transferring funds to a partner (e.g., as part of grants, joint incentive programs, accelerator programs, …).
  • The Lisk Ltd. / Onchain Foundation interacting with a vesting contract to trigger an unlock of available LSK tokens. This actually should not change the circulating supply as both the vesting contract as well as the Lisk Ltd./Onchain Foundation wallet are not considered in the circulating supply.
  • A whale or many users claiming a larger amount of staking rewards.
  • A larger amount of users claiming the Hodlerdrop.
  • The Lisk DAO passing a larger funding proposal.
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