Lista DAO has introduced LIP-024, a proposal to redesign its tokenomics model by transitioning from veLISTA staking to a simplified structure centred on direct $LISTA utility. The update aims to streamline governance, expand token use cases, and shift incentives toward protocol-driven buybacks.
The proposal is currently live for voting on Snapshot, with the voting window running from March 30 to April 2, 2026. If approved, it would mark one of the protocol’s most significant governance restructures since launch.
📢 LIP 024 – Proposal for $LISTA Tokenomics 2.0
This proposal introduces $LISTA Tokenomics 2.0 by phasing out the veLISTA mechanism and expanding $LISTA utility across the protocol.
🔹Key Changes:
– Remove veLISTA staking. All staked veLISTA unlocked with no penalties,… pic.twitter.com/uDJfDYQKoU— Lista DAO (@lista_dao) March 30, 2026
Some key changes include permanently burning 200 million tokens (20% of the total supply), reducing the maximum supply from 1 billion to 800 million to increase scarcity. The update also removes the previous fixed token freeze model and replaces it with a more flexible system that directs rewards toward veLISTA holders, DAO operations, and ecosystem growth. Overall, the goal is to improve long-term value, reduce inflation, and strengthen community confidence, while the DAO also prepares to expand to Ethereum and grow its real-world asset offerings.
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Governance model changes removes veLISTA and simplifies voting system
Another key change under LIP-024 is the complete removal of the veLISTA staking system. All previously locked veLISTA positions will be fully unlocked without penalties, regardless of lock duration. This effectively ends the vote-escrow model that previously tied governance weight to staking commitments.
Under the new framework, governance participation will be simplified. Holding $LISTA alone will grant voting eligibility, while liquidity pool-based voting mechanisms will be phased out. The goal is to reduce complexity and broaden participation across the ecosystem.
Buyback mechanism replaces revenue sharing model
The proposal also replaces veLISTA-based revenue sharing with a structured $LISTA buyback program. Protocol fees previously distributed to stakers will now be redirected toward ecosystem development, user incentives, and periodic token repurchases. A public dashboard will be introduced to track all buyback activity and ensure transparency.
In addition, the $LISTA utility will be expanded through upcoming product integrations, including a “delayed liquidation” feature scheduled for launch in Q2 2026. This is expected to deepen token usage within core protocol functions beyond governance and staking. The vote offers two options: approve the new tokenomics structure or retain the existing veLISTA model. If passed, implementation will begin immediately following the conclusion of the voting period.
Meanwhile, Lista DAO launched Smart Lending 1.1, introducing a redesigned interface and new analytics tools aimed at improving transparency and user control across its lending ecosystem.
What the changes mean for LISTA holders
For existing LISTA holders, the overhaul removes one of the biggest trade-offs in the old system. They no longer have to lock tokens to participate in governance. They can retain liquidity while still voting, while protocol revenue is directed toward buybacks rather than veLISTA rewards.
For the DAO, the challenge is proving that the simpler model can produce better participation and a stronger relationship between protocol activity and token value.
The transition also changes what LISTA holders are being asked to do. Under the old system, long-term commitment was encouraged through token locking. Under the new system, the emphasis is on holding the token, using it within Lista’s ecosystem and participating directly in governance.
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