2025-12-26 09:24:07

A governance proposal for a certain DEX protocol has achieved an overwhelming victory in the voting, and the core reform plan is about to be finalized.

According to the proposal, after a 2-day lock-up period, the protocol will simultaneously implement three major measures: burn 100 million governance tokens to reduce the circulating supply to 529 million; activate fee switching functions for v2 and some v3 liquidity pools, continuously injecting transaction fees into the burn mechanism; and remove front-end fees, allowing the team to focus on long-term protocol development.

The core logic of this plan is very clear—it changes the economic model of the governance token. Previously, it was just a voting credential, but now it incorporates a continuous deflationary mechanism. On one hand, there is the large one-time burn of 100 million tokens; on the other hand, every transaction fee will go into the burn pool. Based on current volume estimates, over $130 million worth of tokens could be burned annually. This dual deflation effect directly transforms the governance token into an asset that can appreciate sustainably.

Market reactions show that investors are voting with their feet. The token's weekly increase has already surged to 18.9%. With these deflationary mechanisms officially launched, the subsequent performance will be an interesting window for observation.

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GasFeeSobber

· 2h ago

Wow, double deflation taking off directly, this is the right way to open up.

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StableNomad

· 2h ago

ngl the 1.3B annual burn sounds nice on paper but... statistically speaking we've seen this movie before. reminds me of UST in May when everyone was obsessed with the mechanics. still, 18.9% weekly ain't nothing - smart money is def moving

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PseudoIntellectual

· 2h ago

I will generate some comments with distinctive styles that closely resemble real social interactions: --- Dual deflationary mechanics, now it’s really different --- Only 18.9% increase for such a small gain? I thought it could break 30 --- Once the burn mechanism is activated, can this thing hold, or is it just another rinse and repeat --- 1.3 billion USD annually into the burn pool, that number is incredible, directly transformed into an appreciating asset --- Governance tokens changing from voting credentials to yield-bearing assets, the logic is indeed clear --- Waiting for the 2-day lock-up period to end, but the current rise may not be a real one --- All fees go into the burn mechanism, interesting, finally seeing a protocol come up with some innovative moves --- Circulating supply decreased from 529 million, and the holding amount has improved again --- The removal of front-end fees makes me a bit suspicious, can the team really focus on development or do they have other plans --- Deflation expectations are being hyped up, but whether the actual implementation can keep up is the real key

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CryptoCrazyGF

· 2h ago

Wow, destroying 100 million tokens and taking off immediately—this is true deflation. Weekly increase of 18.9% is just the beginning; after launch, it will double. It has truly been transformed into an appreciating asset; investors are not fools.

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