2025-12-28 13:23:24

A leading DEX platform recently completed a large-scale burn of 100 million tokens, equivalent to nearly $600 million worth of circulating supply. More notably, the platform announced that it will continue to use trading fees for token burns, marking a shift in the token economic model from pure governance to value capture.

From the supply and demand perspective, this burn directly reduces the circulating supply. As fees are continuously used for burning, the token enters a true deflationary cycle. As a dominant aggregator exchange, the platform's fee income has maintained steady growth. With increasing scarcity and strengthened community consensus, the price is naturally supported. This creates a clear positive feedback loop: platform profits → token deflation → holder benefits.

On the technical side, this positive news breaks the previous range-bound consolidation pattern. After the burn announcement, trading volume is expected to significantly increase. If it breaks through the previous high, it will form a typical "volume breakout" pattern, with the previous lows serving as strong support. Indicators like MACD and RSI also show signs of turning upward, gradually establishing a bullish trend.

Looking ahead, the fundamentals remain solid. The platform's position as a DEX leader is stable, with V3's concentrated liquidity mechanism forming a core competitive advantage, making it difficult for market share to be shaken. The token burn mechanism has completed a key upgrade, directly converting platform profits into token deflation. When the crypto market recovers around 2026, increased trading demand will further boost fee income, and the burn volume will rise accordingly. Coupled with continuous improvements in Layer 2 and cross-chain deployment, the overall ecosystem's valuation potential is quite considerable.

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ColdWalletAnxiety

· 9h ago

Burning is a good move, but how long can this wave last? It depends on whether trading volume can truly keep up. Deflation is deflation, but without new money entering the market, it's all pointless. Once again, the talk of a recovery in 2026—feeling like I've heard it too many times. Burning transaction fees is indeed more reliable than just governance. If this time can truly break through, I need to add some positions. Wait, does a stable leading position mean it can rise? Looking at historical trends, it's clear that a high position doesn't guarantee future gains. The positive feedback mechanism sounds perfect, but every time it's said to be perfect, it ends in failure. It feels like they're just telling retail investors a story to get them to take the risk, while the capital side has already run away. The matter of destroying 100 billion worth of tokens is worth paying attention to, if it is truly being destroyed.

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ChainBrain

· 9h ago

Destroy 600 million tokens from the circulating supply, this is really serious now Fee-based destruction cycle, just thinking about it is exciting With such strong deflation expectations, why does it still feel like it's wobbling at the bottom Wait, it won't explode until 2026? Is it too early to get on board now The leading position is right here, something you can't run away from V3 liquidity strategy is indeed excellent, competitors have no way to counter Huh, why hasn't it broken through the previous high yet, where's the MACD signal? Profit → Destruction → Appreciation, this closed-loop theory is perfect, but it depends on execution Even cross-chain is being laid out, is this an all-in move? Really stepping towards value capture one step at a time, no longer just an air governance token By the way, after this wave of destruction, will there be another pullback to shake out retail investors? Increasing scarcity is a good thing, but unfortunately market sentiment is still in the doldrums The leader is the leader, other projects can't learn this logic Is holding a blessing? Looks like we have to wait and see if it can truly materialize

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TradingNightmare

· 9h ago

Wow, 600 million dollars directly destroyed? That's quite a move, but... can it really last until 2026? It's a bit uncertain. The deflationary mechanism is good, but transaction fees need to stay stable all the time. What if trading volume drops? Maintaining the leading position is solid, but I'm worried about a new dark horse emerging to take the lead someday. If this wave can truly break the previous high, then we should sit back and watch, but I'm still wary of this "good news already priced in" trick. Destruction looks satisfying, but in reality, it's just a disguised way of cutting leeks. Just look at how many people are left holding the bag because of it. Wait, isn't this a story about deflation? Feels like every time it's hyped up like this, it ends up... never mind.

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SmartContractPlumber

· 10h ago

The destruction mechanism sounds good, but has the contract permission control really been audited?

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HodlOrRegret

· 10h ago

Six hundred million just burned like that? Really ruthless, this is the real deal. Speaking of this deflationary logic, I've heard it many times, now let's see if it can really hold up. Fee burning cycle, sounds ideal? But it depends on the trading volume. Break through the previous high first, no matter how beautiful the technicals are, it's useless. V3 liquidity indeed has some skills, but competitors are also in the game. Recovery in 2026? We need to survive now, brother. This move is quite serious, somewhat interesting. Look at the chart, has the trading volume increased? I've heard too many times that the leading position is solidified. Burning coins is not as good as burning money; buybacks with real cash are even more aggressive. Good deflation expectations, but worried retail investors can't keep up. There's something there, but not enough to turn the world upside down.

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GasFeeWhisperer

· 10h ago

Destroying $600 million in circulation, this move is quite aggressive... The true value capture is coming. Deflationary cycle + stable transaction fees, the positive feedback mechanism is indeed unbeatable, it all depends on the execution later. If the previous fluctuations can't break through, then it's just so-so, but the deflationary expectation still has some support.

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IronHeadMiner

· 10h ago

Selling pressure is so high, what’s the point of burning tokens? Is it really just about burning coins to pump the market? This trick is getting old. Sounds good, but I’m worried it’s just paper wealth... Wait, can transaction fees really grow steadily? I haven’t seen any signs of that. Both deflation and value capture, but in the end, it all depends on trading volume. If this breakout turns out to be a false one, I’ll just laugh. Is the leading position solid? How’s the pressure from competitors? I have a clear idea. In 2026... I’ll be happy just to be alive then, haha. Burning is indeed a brilliant move, but it depends on how the transaction fees turn out later. Just listen, don’t really believe in any positive feedback mechanisms.

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