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The Fuego Economy
Fuego brings trading rewards, upgradeable NFTs and $LIT distributions together in the Lighter ecosystem. You can trade, back other traders, or focus on building your collection. You do not have to be a trader to take part.
Every Fuego has its own Vault. Activate it with $FUEGO, increase its level and equip upgrade NFTs to build its share of available $LIT distributions. That $LIT is bought with qualifying Fuego protocol fees.
What each part does
| Asset | Its role in the economy |
|---|---|
| Fuego NFT | One of 5,305 genesis NFTs. Each has its own Vault, permanent levels and a role you can choose in Trading Seasons. |
| $FUEGO | The token used to activate Fuegos, level them up, mint upgrades and exchange NFTs through the Kiln. |
| HEAT | Your earned, nontransferable activity score. It unlocks eligible upgrades to mint and is not spent when you mint them. |
| $LIT | The prize token for traders and the asset distributed to eligible, activated Vaults. |
Why own more than one Fuego?
Each additional Fuego gives you another Vault to activate and upgrade, and another NFT you can register for trading rewards or delegate to a trader. Your collection can earn through several roles at once, with one role per NFT in each tournament.
More activated Vaults add to your total distribution weight. More eligible registered or delegated Fuegos can increase your tournament rewards. The following chapters explain each benefit and how rewards are shared.
How protocol fees become $LIT
Fees to $LIT to Vaults
Three steps, in order. Payouts depend on fees actually received; this is not a fixed return.
- Fuego collects feesApplicable exchange fees, protocol-owned liquidity fees, royalties and referrals contribute funding.
- The distribution share buys $LITThe portion assigned to Vaults is used to buy the token distributed to holders.
- Activated Vaults share the $LITYour share depends on your eligible Vault weight and how long it was active.
Use $FUEGO to activate your Vaults, level up your Fuegos and mint upgrade NFTs. The Kiln lets you use tokens to add another Fuego to your collection, or exchange an eligible Fuego for tokens. Key uses burn $FUEGO. The lifetime mint cap is 100MM, with no team token allocation.
The economy is designed around repeated participation and useful things to own. Vault payouts depend on actual fee income and your share of eligible weight, not a fixed return.
Trading Seasons begin first. Claims, First Spark and upgrades open separately; their dates and requirements are covered later in this guide.