What Is Lisk (LSK) and How Does It Work?
Lisk (LSK) is a blockchain platform designed to make Web3 development more accessible, especially for developers familiar with JavaScript and TypeScript. Launched to lower the barrier to entry for building decentralized applications (dApps), Lisk focuses on usability, scalability, and developer-friendly tooling. Its native token, LSK, is used across the ecosystem for transactions, governance, and network security.
At a technical level, Lisk operates as a
Layer-2 blockchain within the
Optimism Superchain, benefiting from
Ethereum’s security while offering faster and cheaper transactions. Developers can build applications on Lisk using its modular SDK, which allows projects to run efficiently without congesting the Ethereum mainnet. This architecture enables scalability while staying fully compatible with the broader Ethereum and EVM ecosystem.
The LSK token plays a central role in how the network works. It is used to pay transaction fees, participate in on-chain governance, and support network operations as the ecosystem grows. As Lisk expands its developer base and ecosystem of dApps, LSK functions as the economic backbone that aligns developers, users, and validators around the long-term growth of the network.
When Did Lisk Launch?
Lisk was founded in early 2016 by blockchain entrepreneurs Max Kordek and Oliver Beddows with the goal of making decentralized app (dApp) development more accessible through JavaScript and sidechains. The project held a successful initial coin offering (ICO) in early 2016, raising over 14,000 BTC, valued around $5–6 million at that time, one of the year’s most notable blockchain fundraises. The Lisk mainnet officially went live in May 2016, marking its public launch and enabling the native LSK token to be traded on exchanges and used across the network.
Lisk Roadmap Highlights
• 2016 – Lisk founded; ICO and mainnet launch in May.
• 2018 – Rebranding & major SDK (Software Development Kit) development to support customizable sidechains.
• 2021–2023 – Protocol and ecosystem upgrades with focus on scalability, performance, and developer tools.
• 2024–2025 – Transition toward Ethereum compatibility and broader ecosystem expansion.
What Is the LSK Token Used for?
The LSK token is the native utility and governance token of the Lisk blockchain ecosystem, serving multiple core functions that power the network. It can be used to pay transaction fees on the Lisk Layer-2 network and to participate in on-chain governance by locking (staking) tokens to vote on proposals, allocate DAO funds, and influence key network decisions. Additionally, LSK holders can earn staking rewards by locking their tokens for governance participation or supporting decentralized sequencer validators as the network evolves, and it also plays a role in ecosystem incentives for developers and users.
To trade LSK on the
BingX spot market, simply fund your BingX account with a supported asset like USDT, search for the
LSK/USDT trading pair in the Spot section, and place a buy or sell order using
market or limit options. Once executed, your LSK tokens will appear in your Spot Wallet, where you can hold, exchange, or transfer them as needed.
What Is Lisk Tokenomics?
Lisk’s tokenomics were significantly updated following its transition to an ERC-20 token on Ethereum and integration into the Optimism Superchain. The migration introduced a fixed maximum supply of 400,000,000 LSK, replacing the previous inflationary model from its earlier Delegated Proof-of-Stake (DPoS) design.
LSK Token Allocation
1. Community (82%)
• 41% – 10-Year DAO Fund (Community Vote)
• 18% – DAO Fund
• 10% – Staking Rewards
• 6% – Airdrops
• 4% – Liquidity & Market Making
• 3% – Ecosystem Fund
2. Investors (12%) – Strategic Investors
3. Operations (6%)
• 3% – Team
• 3% – Treasury
How to Stake LSK Tokens on Lisk
Staking LSK depends on which version of the network you are using, as Lisk transitioned from a Delegated Proof-of-Stake (DPoS) Layer-1 to an Ethereum-aligned Layer-2 model.
Step 1: Hold LSK in a Supported Wallet
First, make sure you hold LSK in a compatible wallet, such as
MetaMask, if you plan to participate in governance or staking directly on-chain.
Step 2: Access the Lisk Governance or Staking Portal
Visit the official Lisk governance or staking interface through Lisk’s website. Connect your wallet and review available staking or locking options. In the updated Lisk ecosystem, staking typically involves locking LSK tokens to participate in governance and potentially earn incentives rather than traditional validator delegation.
Step 3: Lock (Stake) Your LSK
Select the amount of LSK you want to stake and confirm the transaction in your wallet. Once locked, your tokens contribute to governance participation and may qualify for staking or DAO rewards depending on active programs.
Step 4: Monitor Rewards and Unlock Period
Track your staking status and reward eligibility through the governance dashboard. Some staking programs may include a lock-up period, after which you can unlock your LSK and withdraw or restake.