Core Insights - Lighter's LIT token has experienced a significant decline of nearly 15% in the last 24 hours, attributed to post-launch selling and broader market conditions following the announcement of a new staking program [1][2] Group 1: Staking Program Details - The new staking program allows LIT holders to earn rewards and access additional features, including the ability to deposit 10 USDC for every 1 LIT staked into Lighter's LLP, a key on-chain financial product [3][4] - Existing LLP holders will benefit from a two-week grace period ending January 28, after which staked LIT must remain in the pool [4] - The program aims to better align LIT holders with LLP participants and enhance risk-adjusted returns, with plans for similar structures in other public pools to democratize on-chain hedge funds [4] Group 2: Incentives and Benefits - Staking LIT will provide yield, with the annual percentage rate (APR) to be published once the program is in effect [5] - Additional benefits include zero-fee withdrawals and transfers for users staking 100 LIT, along with upcoming mobile staking support [6] - Yield will initially be generated from staking rights previously reserved for premium users, and premium market makers and high-frequency trading firms will receive discounts on newly adjusted fee tiers [4][6]

Governance & Tokenomics - ZK Nation's TPP-12 proposal regarding ZKnomics Token Staking has passed [1] - The proposal passed with a majority of 9056 million ZK tokens in favor [1] Voting Results - 9056 million ZK tokens voted in favor of the proposal [1]

MEV & Staking - MegaETH sequencer auctions redistribute 90% of MEV to token stakers [1] - At 50% staked, $108 million annual MEV translates to 216% APY from real economic activity [1] Market Opportunity - Ethereum L1 generates $20 million monthly MEV, Arbitrum $5 million [1] - MegaETH's sub-millisecond blocks create more arb opportunities than both Ethereum and Arbitrum [1] - A productive asset yielding 20%+ from transaction ordering is mispriced at $1 billion FDV [1] Auction Details - Public auction starts October 27 at $1 billion valuation [1] Token Utility - Every other L2 token is just governance, implying MegaETH token has superior utility [1]