Question 1

What is LSK, and which network is it mainly used on now?

Accepted Answer

LSK is the ERC-20 token associated with Lisk; following the shutdown of Lisk Chain and the transition to the new Lisk, Ethereum is the primary network for LSK. Officially, it is positioned as the loyalty token of the new Lisk, rather than equity in a company. This positioning comes in the context of Lisk transitioning from a chain ecosystem to a platform for enterprise treasury operations. The token's new role does not mean that all future utilities are already available; eligibility for benefits or access to functions should be determined only by product rules that are already in effect.

Question 2

Why did the LSK supply become 300 million tokens?

Accepted Answer

The total supply of LSK is 300 million tokens. The total supply was previously 400 million tokens, and 100 million tokens were burned after the Lisk DAO sunset proposal passed, reducing the total to 300 million. The burn changes the total supply; it does not mean that the market-tradable amount at every point in time equals 300 million. Tokens that are staked, not yet migrated, or held under different network and custody arrangements can affect the available balance and circulating status seen by users.

Question 3

What impact will the Lisk Chain shutdown have on on-chain assets?

Accepted Answer

Lisk Chain will shut down on October 31, 2026. Before the shutdown date, the chain and its underlying infrastructure will remain operational; after the shutdown, LSK, ETH, stablecoins, bridged assets, or DeFi positions left on the chain may no longer be accessible or operable in the same way. Therefore, handling on-chain assets is not simply a matter of waiting for the shutdown: users need to complete withdrawals or migration before the deadline and allow processing time for each position. The migration of projects and applications to other networks is an arrangement by those projects and does not automatically complete the withdrawal of a user's wallet assets or DeFi positions.

Question 4

How should staked LSK be handled before the chain shuts down?

Accepted Answer

If LSK is on Lisk Chain or is staked, users need to move it to Ethereum before the chain shuts down. For a staked position, unstake first and then bridge: unstaking is now penalty-free, but there is still a 3-day waiting period; the official guidance says bridging takes about 8 days, so at least about 11 days should be allowed. These two stages must not be conflated. Before the 3-day waiting period ends, staked tokens are not yet available as a bridgeable balance; only after unstaking can the bridging process move the assets from the soon-to-close chain to Ethereum. The official guidance also recommends claiming any unclaimed staking rewards before the chain shuts down.

Question 5

How can LSK on the former Lisk L1 be claimed on Lisk L2?

Accepted Answer

Former Lisk L1 holders can claim an equal amount of LSK on Lisk L2 based on their balance at snapshot height 24,823,618. Claim eligibility depends on the L1 account actually holding LSK at that snapshot, and the claim amount equals the balance at that snapshot. The process includes connecting the old L1 account, signing a migration message in the migration wallet, and then submitting a claim transaction on L2. The final step requires a small amount of ETH in the Lisk L2 account to pay gas fees; signing and submitting the claim respectively correspond to authorization from the old-chain account and final execution on L2.

Question 6

What is the difference between the LSK claim window and the Lisk Chain shutdown date?

Accepted Answer

Official documentation provides former L1 holders with a two-year claim and migration window starting on May 21, 2024. This deadline applies to the L1 snapshot claim path described in the documentation and should not be confused with the 2026 Lisk Chain shutdown date as the same rule. When determining which path applies, the key is the location and status of the assets: old L1 snapshot assets are handled under the claim rules; balances or staked positions currently on Lisk Chain need to follow the exit, unstaking, and bridging arrangements before the chain shuts down; the same LSK token on Ethereum or at an exchange does not need a contract change because of the chain shutdown.

Question 7

What role is LSK planned to play in the new Lisk?

Accepted Answer

LSK's future role is as the loyalty token of the new Lisk. Officially, enterprises that use Lisk for treasury operations and refer other users can earn rewards, and Lisk plans to distribute rewards and charge fees in LSK as the product develops. “Plans” and “as the product develops” describe a future product direction and should not be presented as meaning that all users can already earn LSK rewards or pay fees with LSK. Whether holders are eligible, how rewards are calculated, and when they are settled remain subject to the product terms actually in effect at that time.

Question 8

Does holding LSK represent equity, fixed income, or continuing governance rights?

Accepted Answer

LSK does not represent equity in the company behind the Lisk project, nor does it inherently represent fixed income. The approved DAO sunset arrangement means that the former DAO infrastructure, governance contracts, and governance forum will be progressively shut down according to the established schedule. Therefore, past DAO participation or old-chain staking mechanisms must not be directly extrapolated into continuing governance rights or return rights under the new Lisk. For any request claiming it can migrate assets or claim rewards on a user's behalf, never provide a seed phrase or private key.

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