Lisk Reduces Supply by 25% in Token Burn

Lisk has initiated a token burn of 100 million LSK tokens to reduce its total supply from 400 million to 300 million, representing a 25% cut. This move follows the approval of the DAO cessation proposal and is part of the project's efforts to wind down its DAO and refocus its operating model.

The burning of these tokens was allocated to the Lisk DAO Treasury for vesting between 2027 and 2033, but will now be destroyed instead. This reduction in supply aims to limit future growth in circulating supply and reduce selling pressure from ecosystem spending, according to the project.

In addition to the token burn, approximately 47 million LSK from the existing DAO treasury will be transferred to Lisk Ltd. to support the project's new direction. The restructuring comes as Lisk prepares to shut down its own chain on October 31, 2026, with Ethereum becoming the primary network for LSK.

Holders with LSK on the Lisk Chain must unstake and bridge their tokens to Ethereum before the shutdown date, while penalty-free unstaking is now available with a three-day waiting period. This change will significantly impact holders who have yet to unstake their coins.