Major DEX governance move: 100 million token burn plan + detailed explanation of fee conversion mechanism

[Crypto World] The governance vote for a leading DEX just concluded, and the “Fee Conversion” plan was almost unanimously approved. What does this really mean? In simple terms, the protocol will no longer distribute all transaction fees directly to token holders, but instead will allocate a portion into a “Token Treasury.”

The entire reform plan also includes a major move—burning 100 million tokens, which have a market value of approximately $600 million. Users can “burn” their tokens through a specific contract, directly withdrawing equivalent crypto assets from the treasury. The purpose of this mechanism is straightforward: reduce supply and boost the token price.

Fee conversion applies to both v2 and v3 liquidity pools, with 1/6 to 1/4 of each transaction fee being redirected. Additionally, the protocol is planning to introduce a new feature—fee discount auctions—to compensate liquidity providers for their losses. This way, incentives for liquidity in trading pairs will remain intact.

This reform is essentially a fine-tuning of the DEX’s economic model. Reduce supply, optimize fee distribution, and protect liquidity—these combined strategies aim to make the entire ecosystem healthier and more competitive.