Recently, a 1 billion token burn event by a certain DEX has been making headlines, and many are discussing the significance of this move. Instead of following the crowd with comments, let me tell you an interesting story.

Imagine a boss who runs a limited edition doll business. His dolls become popular, and the market follows suit, driving prices sky-high. Business is booming, but then a problem arises—his inventory piles up, and if he dumps these goods into the market, prices will crash immediately. What should he do?

The clever boss comes up with a solution: burning tokens. But the method of burning is quite particular—every time a customer buys a doll from his store, they pay a fee. This fee cannot be secretly pocketed according to the rules and must be handled differently. So, the boss uses these fees to buy back his own inventory of dolls, ostensibly to destroy circulating products, but in reality, real money still flows into the boss’s own account.

This logic can also apply to certain token projects. On the surface, burning indeed reduces circulation, but the source of the reflowed funds and the true cost of burning are details worth pondering. The market always tests human nature, and what we need to do is see through the real story behind the numbers.