Summary

This proposal introduces LISTA Tokenomics 2.0 by removing the veLISTA mechanism. The key changes are:

• Phase out veLISTA and LP pool voting, while simplifying governance so that LISTA holders are eligible to vote on proposals.
• Unlock all veLISTA, without penalties, regardless of original lock duration.
• Replace veLISTA revenue sharing with LISTA buybacks. Fees previously allocated to veLISTA stakers will be redirected to fund future LISTA buybacks. A public dashboard will be set up to track all buyback activity.
• Expand $LISTA token utility, starting with the new product feature "Delayed liquidation" in Q2 2026.

Motivation

The veLISTA model was originally designed to reward long-term commitment and align community incentives. In practice, it has introduced three core problems:

1. Most holders are excluded from benefits

To earn rewards, users must lock their LISTA for a fixed period in exchange for veLISTA. This has created a gap between the broader LISTA holder base and the small group of active veLISTA participants. Despite LISTA's circulating supply growing steadily, the amount locked in veLISTA has stayed flat. The community has made clear they want a system where all LISTA holders can benefit , not just those willing to lock.

2. Low participation due to complexity

Active participation in veLISTA and governance voting sits below 20%. The locking process, time commitment, and risk of being locked out of liquidity make the system more trouble than it's worth for most users. The rewards don't justify the friction.

3. Poor capital efficiency

Users are forced to choose between keeping their assets liquid or earning protocol rewards as they can't do both. This limits how effectively the community can put their LISTA to work.

The same inefficiency exists at the protocol level. While Lista's income has historically covered its emissions, this balance is fragile during volatile market conditions. In short, the current model creates capital inefficiency for both users and the protocol itself.

Specifications

1. Remove veLISTA, Simplify Governance

The veLISTA staking model will be fully retired. All staked veLISTA will be unlocked and redeemable after this proposal passes, no penalties, no vesting periods. Going forward, governance participation will be simplified: holding LISTA is all that is required to be eligible to vote on proposals. The LP pool voting system, however, will be wound down as part of this transition.

• Rewards under the veLISTA model will continue to accrue until the proposal passes. Once the implementation goes live, rewards will run through the last full epoch that follows, after which no further rewards will accrue.
• Bribes and LP pool votes will only be valid up to that same last epoch.
• All rewards accrued before the last epoch remain intact.

2. Remove Revenue Sharing, Introduce Buybacks

The revenue sharing model tied to veLISTA will be discontinued. Instead, the protocol revenue will be used to fund future LISTA buybacks. This helps shift the protocol from a revenue distribution model to a deflationary model. Separately, the emissions that were previously allocated to veLISTA stakers will not go to waste: they will continue to be put to work inside the protocol to support growth. This includes funding user benefits, rewards programmes, and other initiatives or campaigns that drive activity across the ecosystem.

• Revenue sharing will follow the same schedule as veLISTA rewards: it continues to accrue through the last full epoch after implementation, then stops.
• The Lista team will execute buybacks based on real-time data and protocol priorities.
• A LISTA dashboard will be launched to give full transparency into token distribution and buyback activity.
• Note: LIP 021 previously proposed reducing the maximum supply from 1B to 800M. Buybacks build on that direction.

3. Expand $LISTA Token Utility, Starting with "Delayed Liquidation"

To replace veLISTA benefits and grow the value of holding LISTA, we are expanding its utility within the protocol. The first new feature is "delayed liquidation", launching in Q2 2026. Holding LISTA will allow users to qualify for delayed liquidation on their positions, giving them more time to react during volatile market conditions. Further utility features will be announced over time.

Benefits (Pros)

- Accessible: All LISTA holders benefit, not just those who lock. - Flexibility: No lock-ups, no penalties. Users control their own assets. Buybacks reduce circulating supply over time, benefiting long-term holders. - Utilities: Expanded $LISTA token utility starting with delayed liquidation gives holders real, practical advantages within the protocol.

Voting

YES: Approve LISTA Tokenomics 2.0. The Lista team will begin implementation after the proposal passes.

NO: Keep the current veLISTA model unchanged.