Treasury Distrubution

Light Strategy $LIGHT and $LSTR Token Distribution Overview Light Strategy will distribute treasury rewards fairly to all $LSTR stakers. Stakers will receive $LSTR tokens as rewards for staking their $LSTR tokens. Additionally, $LIGHT tokens will be distributed exclusively to $LSTR stakers, aligning with the long-term ethos of holding and supporting the project. Snapshots of stakers’ holdings will be taken periodically, and stakers can claim their $LSTR and $LIGHT rewards via the same webapp used for staking. This initiative aims to incentivize $LSTR staking, increase trading volume, and generate 1% trading fees for $LIGHT and $LSTR buybacks, creating a net positive effect on the treasury through a flywheel mechanism. Game Theory Analysis

• Schelling Point: Distributing $LSTR and $LIGHT rewards to all stakers reinforces loyalty, signals project strength, and boosts engagement within the ecosystem.

• Nash Equilibrium: Stakers may trade $LSTR (increasing market activity) or continue holding and staking $LSTR (supporting ecosystem stability). Increased $LSTR trading generates fees for buybacks, reinforcing treasury growth.

• Risk Mitigation: Fair distribution to all stakers eliminates selective airdrop hunting, reducing sell-off risks and promoting equitable participation.

Expected Impact

• Baseline Volume: $50,000 per 6 hours, equating to $200,000 daily (4 × $50,000).

• Volume Increase: The $LSTR and $LIGHT reward distribution is expected to drive a 100%–300% spike in $LSTR trading volume, based on industry trends (e.g., Hyperliquid’s airdrop). We model 100%, 200%, and 300% increases over 14 days.

• Buyback Revenue: A 1% fee on $LIGHT and $LSTR trading funds buybacks, supporting the treasury’s flywheel effect.

• Net Positive Effect: Increased $LSTR trading volume drives fee revenue, enabling buybacks that enhance treasury value. The $LSTR and $LIGHT reward distribution boosts ecosystem engagement, attracts new stakers, and sustains trading activity, creating a self-reinforcing growth cycle.

Sensitivity Analysis: Projected Reward Distribution Impact

Volume Increase	Daily $LSTR Volume	Total Volume (14 Days)	Buyback Revenue (1% Fee)
100%	$400,000	$5,600,000	$56,000
200% (Base Case)	$600,000	$8,400,000	$84,000
300%	$800,000	$11,200,000	$112,000