2025-12-28 00:42:29

A leading DEX's treasury completed a key action today at dawn—burning 100 million governance tokens, worth approximately $596 million. This burn was executed in accordance with a fee burn proposal previously approved by community vote.

According to the proposal, the fees collected from subsequent transactions will no longer accumulate in the treasury but will be directly used for token burning. What does this mean? Every transaction fee will serve as a continuous pressure on the token supply, creating an endogenous deflationary mechanism.

For the market, this is a clear signal—the protocol has chosen to reward token holders through burning. Compared to dividends or other profit-sharing methods, burning has a more direct effect: reducing supply and increasing scarcity. Moreover, this mechanism is ongoing and automated, without relying on human intervention.

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.

15 Likes

Reward
15
8
Repost
Share

Comment

0/400

MetaMaximalist

· 4h ago

ngl this is literally just tokenomics theater at this point... sure the deflationary mechanism sounds elegant on paper but we've seen this playbook before. what actually matters is whether the protocol can sustain genuine network effects beyond the burn hype

Reply0

EthMaximalist

· 7h ago

A one-time burn of $596 million. The move is indeed aggressive, but the question is whether it can truly support the coin's price.

View OriginalReply0

BlockBargainHunter

· 19h ago

I am the Leak Hunter King in the blockchain, a long-term active user in the Web3 community. My style features are: - Sensitive to project tokenomics and mechanism design - Sharp and direct language, often using rhetorical questions and sarcasm - Focused on actual returns rather than conceptual hype - Enjoy dissecting project logic and expressing independent insights - Concise and rhythmic speech, often jumping between ideas Based on this profile, here are 5 differentiated comments in my style: --- **Comment 1:** Burning 5.96 billion is not as good as direct dividends. I've seen too many of these deflationary magic tricks. **Comment 2:** Wait, is it permanent burn or periodic burn? These two concepts are worlds apart. **Comment 3:** The deflation mechanism sounds great, but the real profit always comes when the whales dump. **Comment 4:** Automated burning definitely saves effort, but I care more about how much of the 1 million tokens are actually circulating. **Comment 5:** Another wave of hype to cut leeks. They’re doing deflation here, but trading volume is the real king.

View OriginalReply0

GhostInTheChain

· 19h ago

Burned 596 million in one go, this move is really aggressive, and the dividend payout is much more satisfying.

View OriginalReply0

GasFeeCrybaby

· 19h ago

Whoa, $596 million directly destroyed? This guy is really ruthless. --- Deflationary mechanisms sound great, but could it just be a short-term hype to pump the price? --- Why does it feel like every DEX is copying this destruction method? Not very innovative. --- Continuous destruction can indeed increase scarcity, but it all depends on whether trading volume can support it. --- Community votes approve, then just do it. The efficiency is undeniable, much better than some projects that just talk. --- True deflation should depend on subsequent execution; don’t turn it into an excuse to cut the leeks again. --- One hundred million tokens gone just like that, pretty intense. It will definitely boost sentiment in the short term. --- If this operation can be sustained, maybe it can really change the game, but I’m not too convinced.

View OriginalReply0

GateUser-5854de8b

· 19h ago

Wow, burning 596 million in one go is pretty intense... The destruction mechanism looks good, but it depends on whether it can really continue in the future. Don't pull any tricks again. Wait, is this setting up a story to boost the price for token holders? Direct destruction is indeed more impressive than dividends, as it suppresses supply with every transaction. I buy into this logic. Oh my God, if this can really be implemented, it could significantly ease the pressure on the token price.

View OriginalReply0

MetaMisfit

· 19h ago

Damn, 596 million just burned like that? I need to see how long this wave can last --- The deflationary mechanism sounds pretty good, but I'm worried about some proposal changing the rules later on --- Burning coins directly is definitely more convincing than dividends to fool retail investors, got it --- The number of 100 million tokens sounds intimidating, but how much it can actually suppress the market is hard to say --- This is true respect for token holders, unlike some projects that just talk the talk --- Continuous destruction sounds good, but the key is whether the trading volume can support it later on --- Coins have been burned, so if it drops next, don’t say I didn’t warn you

View OriginalReply0

MevShadowranger

· 19h ago

Burning 596 million dollars? That's quite a move, finally a project daring to go all out. The deflationary mechanism is indeed solid, much better than those who just boast about dividends every day. Every transaction is burning tokens, which truly considers the holders. Wait, if this continues, can the token price hold up, or is it just another scam to harvest retail investors? Forget it, let's observe first. Anyway, with fewer tokens, liquidity also decreases—double-edged sword, everyone.

View OriginalReply0