Cryptoeconomic Security

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The $LITKEY token and v1 Mainnet are NOT YET LIVE, but coming soon. Stay up to date.

While threshold cryptography and TEEs provide technical security guarantees, the $LITKEY token introduces cryptoeconomic security that adds another layer of defense in depth.

$LITKEY ensures liveness by requiring node operators to stake tokens in order to participate in the signing, encryption, and compute operations provided by the network. Slashing has been implemented to ensure that node operators keep their machines online and responsive at all times, preventing any downtime that could disrupt the network. Unlike some other protocols where slashing may also enforce computational ‘correctness,’ Lit Protocol relies on Trusted Execution Environments (TEEs) and threshold consensus mechanisms to guarantee the accuracy and integrity of operations. As a result, slashing in Lit Protocol is specifically designed to enforce availability and liveness rather than correctness.

Additionally, token holders who aren’t node operators themselves will be able to delegate their $LITKEY tokens to a node operator(s) of their choice, curating the set of active node operators and helping distribute cryptographic security across a broader set of participants.

You can learn more about the role and utility of the $LITKEY token by checking out the token whitepaper.