It is correct that the circulating supply at migration was 153,288,356 LSK and the circulating supply as currently shown on Coingecko is now 183,252,676 LSK. This is an increase of around 30m LSK over 1 year, but does not mean all these LSK have been sold as instead it is rather a result of how the accounting of the circulating supply is done as described above. The main contributors to the circulating supply increase are:
- Liquidity wallet:
- Allocated tokens at token migration: 10m LSK
- Current balance: ~175k LSK
- Contribution to circulating supply increase: approx. 9.8m LSK
- Note: These tokens are used by market makers and liquidity providers we collaborate with in order to provide liquidity on CEXs (small spreads, larger order book depth), for providing base liquidity for DeFi on Lisk or liquidity to the Across bridge (fast LSK bridging between Ethereum and Lisk wouldn’t be possible without it).
- Ecosystem wallet:
- Allocated tokens at migration: ~7.7m LSK
- Current balance: ~1m LSK
- Contribution to circulating supply increase: approx. 6.7m LSK
- Note: These tokens have been used to kickstart the Lisk L2 ecosystem by incentivizing many apps for deploying on Lisk and supporting builder programs as those described here.
- Staking rewards:
- Allocated tokens at migration: 24m LSK
- Current balance: ~19.1 m LSK
- Contribution to circulating supply increase: approx. 4.9 m LSK
- Note: These are tokens paid out to LSK holder that stake.
- Airdrop wallet:
- Allocated tokens at migration: 15m LSK
- Current balance: ~9.1m LSK, but still ~1.375m LSK in Hodlerdrop contract
- Contribution to circulating supply increase: approx. 4.5m LSK
- Note: These tokens have been used for the Hodlerdrop (1.625m LSK, remaining ~1.375m still to be paid out), Userdrop (~ 2m LSK) and app incentives (app rewards paid out directly to users).
- Lisk DAO Treasury:
- Allocated tokens at migration: 6,250,000 LSK (these are only the non-vested LSK)
- Current balance: ~1.1m LSK
- Contribution to circulating supply increase: 5.15 LSK
- Note: The tokens were transferred out as the Season 1 and Arrakis proposal were passed by the Lisk DAO.
All these allocations to different wallets, their purpose and vesting schedule were described already here. So there is no token printing happening, but the tokens allocated at token migration are being used according to the previously communicated purpose.
I agree though that we can be more transparent on ecosystem spendings so the community can better understand how all of the tokens are used and it is our plan to make more efforts on that going forward.