LTO exists both as ERC-20 token and Mainnet coin. The total supply is simply being split into two different sides, where the bridge makes the flow possible. These are the same LTO tokens, but simply exist on different blockchains (1:1) .
LTO mainnet tokens are present on the public blockchain have two purposes:
They are used to pay transaction fees when you interact with the blockchain.
They are used for staking. By staking a node (either by running it or leasing to it) you receive rewards for the blocks forged by that node proportionate to your stake.
There is no network inflation, mining rewards are the transactions fees paid by network users. They can be coming from normal transfers, but around 99% of them are anchoring transactions resulting from clients and integrators using LTO Network engines.
Companies that are not 100% familiar with blockchain or token markets do not need to concern themselves with acquiring tokens. Those with LTO tokens can lease out their tokens to XYZ for example , or XYZ can have tokens staked by their integrator. Of course, if clients want to buy tokens, they are free to do so. In any case, LTO tokens are used at all times — whether companies purchase or lease them. - Altcoin Magazine
More information on staking, mining, and network fees: