Recent major events in the crypto market are happening one after another. A leading decentralized exchange has finally announced the approval of its merger proposal after a long period of discussion. To be honest, this move is quite significant and could have a considerable impact on the entire DEX ecosystem.

To help everyone understand this matter clearly, I will break down the core into two parts. First is the major action on the token economy level. According to the proposal, 100 million DEX tokens will be permanently burned. What is the scale of this number? In terms of circulating supply, it’s like removing a large chunk of tradable chips from the market. Looking at past market performance, token burns may not guarantee a price increase, but in the current market where enthusiasm is not very high, this tangible reduction in supply can indeed support the token’s fundamentals. More importantly, this burn is not just a verbal promise but a confirmed action to be executed. For early investors, this change is worth paying attention to.

The second change is more profound. There has been ongoing discussion that some DEXs have "strong traffic but unclear profit mechanisms." The recent upgrade involving fee mechanism reform essentially aims to streamline the distribution of protocol-level revenue. Once this mechanism switch is complete, fund providers will have a clearer view of how much value the protocol itself can generate. This directly affects who is willing to provide liquidity on the platform long-term, thereby influencing the platform’s competitiveness. To some extent, this is the real step that can shift the market landscape.

Overall, the combination of burn and fee mechanism upgrade not only changes the token aspect but also impacts the fundamental health of the entire protocol. How things will develop next, the market will provide the answer.