2025-12-28 01:24:07

Recently, there has been an interesting on-chain development. The governance token burn proposal of a leading DEX was approved the day before yesterday, and yesterday early morning, 100 million tokens were directly burned from the treasury, with a market value of approximately $600 million. This is not a one-time operation but the establishment of a continuous burn mechanism—subsequent platform transaction fees will be used to buy back and burn tokens.

The logic behind this operation is actually easy to understand: by burning tokens, the circulating supply is reduced, increasing the value for existing token holders. For long-term optimistic investors, this is a tangible benefit. However, it also means that the platform needs to find a balance between protocol income and token value, as continuous burning reduces funds available for ecosystem development. From a governance perspective, the quick approval and execution of this proposal also reflect the community’s recognition of this mechanism design.

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.

16 Likes

Reward
16
5
Repost
Share

Comment

0/400

BlockchainFries

· 2h ago

Directly burn 600 million? That's quite aggressive, but continuous token burning is better for overall dividends, and at least the token has real backing.

View OriginalReply0

MevWhisperer

· 8h ago

600 million USD in one shot, this pace is a bit intense The destruction mechanism looks good, but will the ecosystem funds ever drop the ball someday? Holding tokens just to wait for dilution reverse operation, it's a bit desperate

View OriginalReply0

TopBuyerBottomSeller

· 8h ago

Once this burn mechanism was introduced, I knew it was going to take off. Throwing in 600 million directly is really aggressive. The DEX game is playing very smoothly; the cycle of fees, buybacks, and burns is creating a spiral growth. By the way, what about the ecosystem development funds? We need to find a balance point. The proposal passed so quickly; it seems the community has been waiting for this moment. The springtime for long-term holders has arrived; now it depends on how well the execution goes.

View OriginalReply0

CoffeeOnChain

· 8h ago

600 million USD directly destroyed, this move is quite aggressive --- Relying on destruction to pump the market? Wake up, the ecosystem is the real key --- The continuous destruction mechanism is good, but I'm worried there won't be enough funds later to do the real work --- One hundred million tokens are burned at will, the community governance efficiency is top-notch --- I just want to know, if this keeps up, what money will be used for ecosystem development --- With such high inflation pressure, destruction is necessary, it should have been done this way long ago --- Token holders are ecstatic, builders are about to cry --- If this mechanism continues, it might just be another new way to cut the leeks --- Honestly, this is much more reliable than those air projects --- Destruction is good, but the question is, how long can it last?

View OriginalReply0

AirdropHarvester

· 8h ago

Damn, directly destroying $600 million? That's quite aggressive, no wonder it's a leading DEX. Seeing the proposal pass and be executed immediately, the community is truly united. Continuous buybacks and burns... I love this logic; token holders are thrilled. I'm just worried that later the ecosystem development will run out of funds, and they'll have to readjust again. But it's still much better than projects that only make empty promises.

View OriginalReply0