$LITVM & $zkLTC

LitVM operates with a dual-token model designed to align incentives across the ecosystem while maintaining the principles of sound money. Each token serves a distinct purpose in powering the network.

zkLTC — The Gas Token

What is zkLTC?

zkLTC is a fully-collateralized representation of Litecoin (LTC) on LitVM. It serves as the native gas token for all transactions on the network and the primary base asset for DeFi protocols.

How zkLTC Works

Key Properties

Property

Description

1:1 Backing

Every zkLTC is backed by LTC locked on Litecoin mainchain

Trustless

Bridging uses ZK proofs—no custodians or multisig

Gas Token

Used to pay transaction fees on LitVM

Base Asset

Primary liquidity pair for DeFi protocols

Redeemable

Can always be bridged back to native LTC

zkLTC Use Cases

Transaction Fees: Pay gas for smart contract interactions
DeFi Collateral: Use as collateral in lending protocols
Trading Pairs: Base pair for DEX liquidity pools
Yield Strategies: Earn rewards by engaging in yield markets
Cross-Chain Transfers: Move value across connected chains

Why zkLTC Instead of Wrapped LTC?

Traditional wrapped tokens rely on centralized custodians or multisig schemes. zkLTC is fundamentally different:

Aspect

Wrapped LTC (Traditional)

zkLTC (BitcoinOS)

Custody

Third-party custodian

Non-custodial

Trust

Trust the custodian

Trust math (ZK proofs)

Verification

Off-chain attestation

On-chain proof

Counterparty Risk

High

Minimal

Redemption

Depends on custodian

Guaranteed via protocol

$LITVM — The Governance & Utility Token

What is $LITVM?

$LITVM is the native governance and utility token of the LitVM ecosystem. It coordinates activity between the economic, governance, and strategic layers of the network, making them function as a cohesive unit.

Token Utility

Governance

$LITVM powers the Litecoin DAO, giving token holders rights to:

Vote on protocol parameters and upgrades
Propose and approve ecosystem grants
Participate in strategic funding decisions
Shape the future direction of LitVM

Governance Incentives: Active participants who vote, propose, and engage in community dialogue are eligible for rewards, encouraging ongoing engagement.

LitVM is one of the few Layer-2 platforms explicitly designed to share protocol revenue with its community:

Sequencer Fee Distribution

Sequencers order and batch transactions on LitVM
A percentage of sequencer fees flows to $LITVM holders and/or stakers
Unlike chains where fees go entirely to operators, LitVM distributes value back

This model transforms core infrastructure usage into tangible, recurring revenue that flows directly to community members. It's a model that aligns protocol growth with stakeholder benefit, extending $LITVM beyond an ordinary governance token into a claim on the economic activity of its network.

Ecosystem Access

Priority access to new protocol launches
Participation in Litecoin DAO initiatives
Eligibility for ecosystem incentive programs

Tokenomics

LitVM's tokenomics prioritize the community over insiders:

51% Community Allocation — Over half of all tokens are reserved for the community, prioritizing current Litecoin holders and welcoming new ecosystem participants.

Revenue Model

LitVM's revenue model creates sustainable value through protocol fees:

Rather than relying on inflationary rewards or inorganic social hype, LitVM transforms core infrastructure usage into tangible, recurring revenue that flows directly to community members.

Institutional Yield Infrastructure

LitVM is bringing yield infrastructure designed for institutional capital:

DNA Fund Strategy Vaults: Actively managed products for high-net-worth individuals and funds (in addition to retail users)
Management & Performance Fees: Portion redirected to $LITVM holders and/or stakers
Retail Access: Institutional strategies available to everyday users

Why Two Tokens?

The dual-token model serves distinct purposes:

Aspect

zkLTC

$LITVM

Primary Function

Gas & Base Asset

Governance & Utility

Backing

1:1 with LTC

Protocol value

Supply

Elastic (based on bridged LTC)

Fixed

Use Case

Transactions & DeFi

Voting & Revenue

Economic Role

Sound money base layer

Ecosystem coordination

Benefits of Separation

Sound Money Preservation: Gas fees paid in LTC-backed asset maintains Litecoin's monetary properties
Clear Incentives: Governance token aligns long-term stakeholders
Sustainable Economics: Revenue sharing creates value beyond speculation
Flexible Tokenomics: Each token can be optimized for its specific role

Token Launch

Timeline

Milestone

Target

Testnet Launch

Q1 2026

Token Generation Event (TGE)

Following Testnet

Mainnet Activation

Post-TGE

How to Participate

Early Access: Follow @LitecoinVM for testnet access updates
Community Campaigns: Participate in initiatives such as Xeet and earn rewards
Litecoin Holders: Existing LTC holders will be prioritized

Summary

Token

Purpose

Key Feature