Time goes back to 4:30 AM yesterday. If you were looking at on-chain data at that moment, you would notice a key event — a major DEX's treasury address transferred out 100 million governance tokens, worth about $600 million.

This money did not enter any trading account but was sent to a black hole address, permanently locked.

This is not a hacking incident nor a mistake. It is the long-debated "token burn" proposal that has finally been officially implemented on the chain.

More importantly, this is just the beginning. According to the proposal mechanism, every time this DEX earns a trading fee in the future, it will be converted into tokens for burning according to the rules. Simply put — the total circulating tokens are being continuously swallowed up.

This is the so-called deflationary logic. When the supply decreases and demand remains unchanged, the price is theoretically supported. For long-term holders, this indeed provides a solid fundamental backing.

But here’s the problem. Such a major positive development has long been common knowledge. Truly forward-looking funds have already entered during the proposal voting stage, or even earlier. By the time the news floods the market and retail investors start to follow wildly, the main upward wave of the market has often already passed halfway.

So don’t rush to chase the high. Burning tokens is real, but it cannot solve short-term market speculation.