JustLend DAO has completed the first round of JST buyback and burn, and the ecological benefits continue to empower the deflationary cycle

The core DeFi protocol of the TRON ecosystem, JustLend DAO, has reached a milestone moment with the successful completion of the first large-scale JST burn. This marks the official transition of JST from "fully circulating distribution" to a new stage of "sustainable deflation."

According to the latest burn announcement, JustLend DAO has extracted over 59 million USDT in existing earnings, with 30% of this amount being burned for the first time, resulting in a total of 560 million JST burned. This burn accounts for 5.6% of the total supply of JST; the remaining 70% of existing earnings will be distributed over four quarters, and has now been deposited into JustLend DAO's SBM USDT lending market to earn interest.

The first round directly burned 5.6% of the total supply, igniting enthusiasm in the crypto community and triggering a positive market response.

More importantly, this buyback and burn is not a short-term stimulus but the starting point of JST's "long-term deflation model" based on real ecological earnings. From the approximately 60 million USD in existing earnings of JustLend DAO, to the continuous injection of incremental earnings from the USDD multi-chain ecosystem in the future, and the value support of the entire JUST ecosystem, JST is gradually forming a positive cycle of "ecological profit-driven deflation → deflation enhances scarcity → scarcity drives value → value feeds back into the ecosystem." As ecological details continue to be implemented, the long-term value and growth potential hidden behind JST are becoming increasingly clear.

Orderly Progress of Buyback and Burn in Phases: First Round Burned 5.6% of Total Supply, with Over 41 Million USD Earnings Yet to be Burned

The buyback and burn mechanism initiated by JST demonstrates unique competitiveness. It does not rely on short-term, one-time fiscal subsidies for maintenance but is rooted in the real business profits of the two ecological pillars, JustLend DAO and USDD. By directly linking the value of JST with ecological earnings and employing a clever design of "existing earnings as a base, incremental earnings for continuity," it ultimately establishes a clear and sustainable long-term deflationary closed loop, fundamentally distinguishing it from the common "flash-in-the-pan" short-term buyback behaviors in the crypto market.

In terms of funding sources, the buyback funds for JST are transparent and highly sustainable, precisely focusing on the profitability of the two core components of the JUST ecosystem: "JustLend DAO and USDD," eliminating the risk of "robbing Peter to pay Paul," fundamentally ensuring the stability of the deflation mechanism.

Specifically, the funds are divided into two categories: one is the existing and future net income of JustLend DAO, covering "existing earnings + future incremental earnings"; the other is the incremental earnings from the USDD multi-chain ecosystem after breaking through the 10 million USD profit threshold. Both types of funds will be fully directed into the JST buyback and permanently burned. This design deeply links the value of JST with the earning capacity of JustLend DAO (the core lending protocol of the TRON ecosystem) and USDD (the second-largest stablecoin on TRON), forming a virtuous cycle of "the more prosperous the ecosystem → the higher the business profits → the stronger the deflationary force," laying a logical foundation for the long-term value growth of JST.

According to previous proposal announcements, JustLend DAO has accumulated existing earnings of approximately 60 million USD, which will be fully injected into the JST buyback and burn in phases; the incremental earnings from the USDD ecosystem will only join the buyback and burn queue after breaking through the 10 million USD profit threshold, providing additional momentum for long-term deflation.

In the implementation phase of the burn, JST has adopted a rhythm of "existing earnings phased and orderly landing, incremental earnings continuously and steadily injected." This strategy effectively avoids market short-term speculation caused by one-time large-scale burns, ensures the impact of short-term deflation, and reserves "compound growth space" for the long-term reduction process.

Regarding existing funds, the JustLend DAO platform has extracted over 59 million USDT in earnings. According to the burn announcement, for this portion of funds, a rhythm of "30% as the first batch of burn funds + 70% gradually burned quarterly" has been adopted.

Currently, the first batch of JST burns has been successfully completed. According to TRONSCAN data, 30% of JustLend DAO's existing earnings have been successfully burned, corresponding to approximately 560 million JST, which accounts for over 5.6% of the total supply of JST. This first round of burns has thus wiped out over 5.6% of the total supply, a rare move among many projects in the crypto world, fully demonstrating the team's and community's firm determination to promote the long-term value growth of JST.

The remaining 70% of JustLend DAO's existing earnings will be used for the buyback and burn of JST in batches at a rate of 17.5% per quarter over the next four quarters, until the fourth quarter of 2026. Currently, this portion of funds is deposited in the USDT market on JustLend DAO's SBM in the form of jUSDT to earn interest, and subsequent earnings will be used for the JST buyback and burn.

In terms of incremental funds, future net income from JustLend DAO will be fully included in the buyback pool each quarter; once USDD profits exceed the 10 million USD threshold, its incremental earnings will also be injected into the buyback pool. This means that as the scale of business in both ecosystems (such as the lending TVL of JustLend DAO and the circulation of USDD) continues to expand, the deflationary momentum of JST will continue to strengthen, completely eliminating the issue of "insufficient subsequent momentum."

The buyback and burn work for each subsequent quarter will be specifically operated by JustLend Grants DAO, with clear and defined execution rules: at the beginning of each of the first four quarters, burn "the incremental net income of JustLend DAO from the previous quarter + 17.5% of existing earnings." This "small amount, high frequency" operational model ensures the continuity of deflation while smoothing market expectations, laying a foundation for the long-term deflation of JST.

In addition to executing the buyback and burn, Grants DAO itself is also the JST incentive and ecological empowerment institution led by the JustLend DAO community, with the core mission of empowering developers, contributors, and all ecological construction projects through diversified means while maintaining market stability. As a core booster of the ecosystem, it benefits all participants, including JST holders, voters, and liquidity providers, by injecting the JUST ecosystem reserve funds and partner funds into the Grants Pool. Currently, the Grants DAO treasury has a fund reserve of approximately 130 million USD, providing solid support for the long-term development of the JustLend DAO ecosystem.

The implementation of this deflationary closed loop marks the official transition of JST from "fully circulating tokens" to "continuously shrinking value assets." The first batch of burns exceeding 5.6% of the total supply is just the starting point; as existing funds are released in batches and incremental funds are continuously injected, the cumulative burn will exceed 20% of the total supply.

JustLend DAO and USDD Ecosystem Earnings Collaborate to Drive JST Value Growth

Of course, the value growth of JST does not rely solely on the logic of deflation but is deeply supported by the entire JUST ecosystem's "full-chain value closed loop" ------ the synergistic profit empowerment of the two core components, JustLend DAO and USDD, not only provides continuous funding for the deflation mechanism but also constructs a complete transformation path from "deflationary reduction" to "value enhancement."

As the core DeFi system of the TRON ecosystem, JUST has built a "lending + staking + energy leasing" composite service system around the core lending protocol JustLend DAO, while also expanding a comprehensive DeFi product matrix including the stablecoin USDD and cross-chain JustCrypto, providing system-level ecological guarantees for JST to achieve the transformation from "deflation mechanism implementation" to "substantial value enhancement."

Among them, JustLend DAO, as the core pillar of the JUST ecosystem, has long completed the strategic upgrade from a single lending protocol to a comprehensive service platform, evolving into a multifunctional DeFi platform that integrates lending markets (SBM), liquid staking (sTRX), and energy leasing (Energy Rental). This means that the profitability of JustLend DAO does not rely on a single lending business but builds a multi-layered income structure through diversified businesses, significantly enhancing its risk resistance and growth potential compared to similar protocols. The diversity of this profit model and the stability of its market position ensure that the "fund pool" for JST deflation will continue to be filled.

This can be clearly evidenced by JustLend DAO's operational data. As of October 21, the total locked value (TVL) of the JustLend DAO platform has surpassed 7.62 billion USD, with a user base of 477,000, firmly maintaining its position as the leading DeFi protocol in the TRON ecosystem. Even in the global lending sector, JustLend DAO, with the advantage of single-chain deployment, has consistently ranked among the top four in the industry in terms of TVL, firmly positioned in the "first tier of lending DeFi protocols."

In terms of profitability, the feasibility of JustLend DAO's business model has been fully validated through long-term operational data. According to the disclosed burn data, JustLend DAO has extracted a cumulative platform earnings of approximately 59 million USD; according to DeFiLlama data, the fees captured in Q3 of this year alone approached 2 million USD, with daily earnings exceeding 20,000 USD and maintaining a steady growth trend. This level of profitability means that even without considering existing funds, the incremental income alone can support a buyback scale of nearly 6 million USD per month, providing sustainable funding for JST's long-term deflation and serving as "baseline funding" for long-term deflation.

At the same time, USDD, as the decentralized stablecoin launched by JUST, constitutes the "second profit engine" of the JST deflation mechanism. According to the mechanism design, when the USDD multi-chain ecosystem profits exceed the 10 million USD threshold, the excess earnings will be directed into the JST buyback fund pool.

As the second-largest stablecoin in the TRON ecosystem, USDD is accelerating towards the 10 million USD profit threshold through diversified profit models such as "excess collateral asset interest income" and "cross-chain transfer fees." Currently, USDD has completed multi-chain deployment, successfully expanding to mainstream public chains such as Ethereum and BNB Chain, with a circulation exceeding 450 million USD. This means that as the circulation scale of USDD expands and application scenarios extend from basic trading mediums to DeFi collateral and payment tools, it is expected to become an important source of deflationary funds for JST in the future.

From the overall scale of the JUST ecosystem, its total locked value (TVL) has reached 12.2 billion USD, directly accounting for 46% of the total locked value across the TRON network. This means that nearly half of the assets on the TRON chain actively choose to settle in the JUST ecosystem. This overwhelming scale is no coincidence; it intuitively confirms the market's high trust and broad recognition of the JUST ecosystem, and it signifies that it has the core capability to "continuously create large-scale stable earnings": every lending operation, staking action, or cross-chain transaction within the ecosystem may ultimately convert into actual earnings for JustLend DAO or USDD, and these earnings will directly become the core fund pool for JST buyback and burn, solidifying the "fund base" for the deflation mechanism.

What is even more promising is that the growth momentum of the JUST ecosystem has not slowed down but continues to strengthen ------ the business expansion of JustLend DAO and USDD is accelerating. The TVL scale and market share of both are steadily rising, and the corresponding earnings volume will also expand simultaneously, undoubtedly injecting stronger financial support into the JST deflation mechanism, ultimately forming a virtuous cycle of "ecological prosperity → earnings growth → accelerated deflation → value enhancement," providing a solid foundation for the long-term value growth of JST at the ecological level.

The Resonance of the Deflation Mechanism and Ecological Earnings Opens a New Path for JST Value Growth

With the official execution of the first round of JST buyback and burn, its large-scale deflation process has fully commenced. Currently, the deflation mechanism of JST resonates with the positive cycle of JustLend DAO and USDD ecosystems, mutually reinforcing each other. This synergy is expected to directly propel JST into a new price increase channel.

The JST token achieved 100% full circulation in Q2 2023, with a total issuance fixed at 9.9 billion tokens, eliminating any future unlocking pressure. This characteristic means that every buyback and burn is a real reduction of the "actual circulating supply," rather than a nominal adjustment of numbers, making the deflation effect pure and direct.

In terms of the intensity of the burn, the first round burned approximately 560 million JST, which has once reduced the total supply by over 5.6%. With the continued progress of subsequent quarterly buybacks, relying solely on JustLend DAO's existing earnings, the cumulative deflation ratio will approach 20%. The continuous reduction in circulation will significantly enhance the scarcity of the token, thereby providing strong support for JST's price.

Notably, the high proportion of JST's burn is particularly prominent in the industry. Currently, the market value of JST is only about 300 million USD, while JustLend DAO's single platform has 60 million USD in existing earnings, which is equivalent to 20% of the former's market value. In comparison to similar tokens in the crypto market, most buyback and burn plans have funding ratios of less than 5% (for example, Aave's buyback fund announced in March this year was only 24 million USD), making JST's over 20% burn intensity a "benchmark in the industry." More critically, this ratio does not yet account for the future incremental earnings that will continue to be generated, and as the profitability of JustLend DAO and USDD ecosystems grows, the deflation effect will further amplify.

Further examining the product fundamentals, as TRON founder Justin Sun previously pointed out, the product support logic behind JST has fundamentally changed. It is no longer a single lending tool but a comprehensive DeFi platform that integrates multiple functions such as "lending (comparable to Aave), stablecoins (comparable to MakerDAO), and staking (comparable to Lido)," effectively condensing the core competitiveness of three leading products in the industry into one, with fundamental strength far exceeding that of similar single protocols.

Especially as the core support of JST, JustLend DAO, which was launched in 2020 as a well-established DeFi protocol, has achieved significant breakthroughs on the business side through long-term accumulation: from the initial single lending, it has gradually expanded to staking, energy leasing, and innovative GasFree functions, constructing a diversified income structure, enhancing both risk resistance and profitability potential; in terms of secure operations, it has consistently maintained a record of zero security incidents, a reliability that is particularly rare in the industry.

At the same time, JustLend DAO also relies on the complete TRON ecosystem for strong support ------ including the world's largest USDT circulation center, over 340 million users, and other core resources. These advantages not only provide underlying guarantees and value amplification space for its diversified businesses but will also continuously translate into core value support for the JST token, solidifying its long-term growth foundation.

While most crypto projects are still indulging in short-term benefits and chasing market hotspots, JST has solidified its long-term deflation logic through the "buyback and burn mechanism." It relies on the dual profit engines of JustLend DAO and USDD, along with the full-chain support of the JUST ecosystem, ultimately carving out a differentiated development path centered on "value-driven," in stark contrast to the short-term profit-seeking behaviors in the market.