The Tokenomics of $LAIR
Last updated
Last updated
$LAIR is the core value powering the Lair Finance restaking ecosystem. With a total fixed supply of 1 billion tokens, $LAIR underpins incentives and participation within the community. $LAIR has slightly different roles in different ecosystems, but the essence is the same: it powers Lair's crosschain liquid restaking. In its implementation, unlike simple TVL-accumulating restaking protocols, Lair Finance designs its model to optimize for each L1 blockchain's specific structure, building practical solutions that amplify the growth potential of each underlying chain.
$LAIR tokens are the cornerstone of the Lair restaking mechanism, providing essential incentives for active engagement and continuous participation. Participants stake $LAIR and get multiple rewards.
To engage in restaking, users must stake $LAIR tokens along with $stKAIA tokens. This design ensures participants maintain genuine exposure to $LAIR, minimizing the selling pressure typically associated with tokens that can be farmed passively.
The yield-bearing $rstKAIA incentivizes early participants by requiring fewer $LAIR to participate initially. As the ecosystem grows, participation thresholds naturally rise, thereby increasing the demand and value of $LAIR over time. This unique economic structure rewards early adopters significantly, fostering strong initial momentum and long-term loyalty. $rstKAIA
With the launch of the $LAIR, restaking will also be upgraded. While previously only $stKAIA was needed, now users must restake both $stKAIA and $LAIR together to receive $rstKAIA. $rstKAIA is important in the Lair's ecosystem because it returns to users as rewards through the Vault.
Learn more about Lair vaults
Lair is extending its restaking model to Berachain with LrBGT—a liquid‑restaked version of BGT that harnesses yield from existing BGT liquid‑staking tokens (starting with ’s iBGT). Validator rewards are auto‑compounded under the hood while your position stays fully liquid, so you can move LrBGT freely through Berachain’s DeFi landscape.
Plugged into Berachain’s Proof of Liquidity (PoL) framework, LrBGT lets users capture boosted BGT yields without sacrificing flexibility. $LAIR remains the connective tissue between the new asset and the broader Lair economy, ensuring value created on Berachain feeds back into the protocol.
On Kaia, as Lair Finance's TVL increases, more rewards flow to Restaking Partners and AVS Rewards grow, leading to increased $rstKAIA creation. This naturally drives higher demand for $LAIR tokens, as more $LAIR is required for the growing restaking ecosystem, creating a positive feedback loop that strengthens market demand.
On Berachain, while operating with a different structure than Kaia, Lair Finance's growing TVL amplifies the influence of LrBGT restaking tokens and related Bera tokens through the iBGT connection. As the restaking mechanism gains traction within Berachain's Proof of Liquidity (PoL) framework, market demand for $LAIR grows correspondingly, reinforcing the token's value across multiple ecosystems.
The distribution of $LAIR tokens highlights the project's strong commitment to community-centric growth and ecosystem sustainability:
Allocation
Percentage
Community
40%
Ecosystem Fund
30%
Investors
14%
Core Contributors
13%
Strategic Partners
3%
With 70% of $LAIR's total supply dedicated exclusively to the community and ecosystem development, Lair Finance distinctly emphasizes community involvement and sustainable growth. We firmly believe in empowering our community and nurturing a thriving ecosystem, as these elements are fundamental to our project's enduring success and value creation.
The Lair Finance governance system gives both $LAIR and $rstKAIA holders a voice in protocol decisions. Our time-weighted voting mechanism rewards long-term commitment, allowing users with smaller holdings to gain significant governance influence through extended staking periods. This creates a more balanced ecosystem where governance power isn't determined solely by wallet size, but also by dedication to the project's long-term success.
Lair Finance is designed as a cross-chain restaking service, and $LAIR will eventually extend further. Plans are underway to integrate $LAIR into prominent Layer 1 blockchains like Kaia, Berachain, Injective, StoryProtocol, Initia and Somnia, greatly expanding its utility and reach. This crosschain approach not only amplifies the potential value and utility of $LAIR but also ensures continued growth opportunities for our community. Together, we're building a dynamic, interconnected ecosystem with limitless possibilities.
