Space Review | JST Buyback and Burn Plan Officially Launched, Opening a New Chapter in TRON DeFi Value

Recently, the JustLend DAO governance community officially passed the proposal for the JST buyback and burn mechanism, completing the first large-scale buyback and burn of JST. From now on, the net income of JustLend DAO and the USDD multi-chain ecosystem, exceeding $10 million (excluding the first $10 million), will be used as planned for the buyback and burn of JST, executed transparently on-chain.

According to the latest burn announcement, JustLend DAO has a total income of 59,087,137 USDT, of which 30% (equivalent to 17,726,141 USDT) will be used to buy back and burn 559,890,753 JST, accounting for approximately 5.66% of the total token supply. The remaining 70% of the funds have been deposited into JustLend DAO's SBM USDT lending market to earn interest, and will be executed in batches for burning over the next four quarters as planned.

This move has quickly ignited enthusiasm in the crypto market, triggering a positive response. This is not just a simple adjustment of the token economic mechanism, but a deep practice of the decentralized concept of "value feedback to the community." The successful launch of this mechanism raises deeper questions: How will the deflationary path of JST reshape its market expectations and supply-demand relationship? How will it drive the value flow of the TRON DeFi ecosystem? More importantly, does this signify that a new generation of DeFi economic models centered around "revenue buyback" is maturing?

With these questions in mind, JUST DAO, in collaboration with the leading Web3 information platform Metaera, held a special X Space to attempt to clarify the core logic, ecological impact, and long-term significance behind the JST buyback and burn plan. This article will take you through this intellectual collision, exploring the deep logic and industry insights behind the JST buyback and burn plan.

JST Starts the DeFi "Value Flywheel": Detailed Explanation of the Core Logic of the Deflationary Model and Market Balancing Techniques

In the Space discussion regarding the JST buyback and burn proposal by JustLend DAO, the first speaker, Joy, vividly illustrated the core logic of this mechanism through an analogy. She pointed out that the deflationary model of JST essentially brings the value feedback model of "profit buyback and stock cancellation" from traditional listed companies into the DeFi world. She believes that the essence of this mechanism lies in constructing a "virtuous cycle of value recovery," transforming protocol fees into token value on one hand, and forming price support through deflationary pressure on the other, with the ultimate goal of creating a long-term, sustainable "value flywheel" for a spiral increase.

Speaker Aster further deepened this viewpoint from the perspective of value distribution. He interpreted the buyback and burn as "a disguised way of distributing dividends to all shareholders" and emphasized that this is "a typical signal of the ecosystem's shift from short-term operation to long-term governance." He analyzed that this mechanism not only raises token prices through actual deflation, benefiting all holders, but also transparently showcases protocol income, incentivizing market attention and participation, thereby forming a positive cycle of "higher profits---more buybacks---stronger ecosystem." In his view, this is the core logic of the proposal.

Regarding whether the phased burning strategy can balance market expectations and supply-demand, speaker MARK first expressed confidence from the perspective of intensity and ecological linkage. He pointed out that compared to other protocols with "millions of dollars" in buyback scale, JST's buyback and burn plan of about sixty million dollars is "very substantial and gives the market great confidence." In the long run, as protocol income continues to grow, the support from buybacks and price premiums is solid. However, he objectively added that after a price increase driven by expectations, there may be pressure to adjust due to "good news being fully priced in," but this largely depends on the overall stability of the market.

Teacher Aster provided a more detailed projection of short-term market dynamics. He acknowledged that the phased design aims to "minimize the possibility of a sustained decline after a short-term surge," but since the initial 30% proportion is significantly higher than subsequent quarters, there may be a short-term surge due to high attention, followed by a potential adjustment as the pace slows. However, he predicted that compared to a one-time buyback, this phased model would result in "not very large" adjustments, and the trend would be "relatively smooth."

Speaker Qiurong's analysis introduced a key dynamic perspective, deeply linking token prices with the protocol's "profitability." He pointed out that phased burning is a wise design to prevent "short-term surges," with the first wave of 30% providing "certain positive news," while the subsequent quarterly 17.5% burn constitutes "long-term market expectations." Ultimately, the long-term performance of JST depends not only on its deflationary model but also on "the overall market liquidity situation" and whether JustLend DAO and the USDD protocol can continue to capture value and expand profits in the competitive DeFi ecosystem.

From Value Support to Governance Wisdom: How JST Buyback and Burn Reflect DeFi Ecological Values

When discussing the profound impact of the JST buyback and burn mechanism on the TRON ecosystem, speaker Hong Kong Wang Fugui straightforwardly affirmed its pivotal role. He believes that as the core governance token connecting multiple protocols, JST's deflationary mechanism will undoubtedly have a "promoting effect" on projects like USDD, SUN, and stUSDT, directly bringing "positive feedback," and this positive influence will continue to affect the entire ecosystem.

Speaker 0xLeon also believes that JST plays a "threading needle" role in the TRON ecosystem, linking various protocols into an organic whole. However, he sharply emphasized that the buyback and burn mechanism itself is merely a tool; the real test lies in where the DAO's funds are directed—whether to build a "highway" that promotes ecological prosperity or to invest in a flashy but impractical "palace." This insight profoundly reveals that the core value of JST DAO lies in its "decision-making wisdom," specifically how to use incentive strategies to accurately support key protocols that drive ecological prosperity, thereby completing the leap from "value circulation" to "value growth."

When the discussion extended to the implications of the "net income buyback" model for the entire DeFi industry, speaker 0xLeon reiterated the insight that "decision-making is more important than mechanisms." He predicted that in the future, blockchain will carry massive amounts of traditional financial assets (RWA), and AI will become a major participant in DeFi. Therefore, the huge opportunity for JST DAO and the entire TRON ecosystem lies in whether it can leverage its mechanisms to accurately bet on future-oriented tracks like AI and RWA, thus seizing opportunities that are "100 times or 1000 times larger" than the native crypto market.

Speaker MARK asserted from the perspective of market trends and value support that this model is becoming a new industry standard. He cited top protocols like TRON, PancakeSwap, and Aave adopting similar models as examples, pointing out that "the net income buyback token model has become an industry standard posture." The fundamental reason is that it provides crucial "real value support" for tokens. In his view, any DeFi project that does not want to go to zero in the future should consider this path with "protocol income support," thereby building a stronger trust bond between users and protocols.

The JST buyback and burn is not only an experiment in its own deflation but also a deep exploration of "governance value" and "economic model sustainability" for the TRON ecosystem and the entire DeFi world. The speakers unanimously agreed that a transparent, net income-based buyback model provides an effective solution to the core industry challenge of token value capture, and is very likely to become a standard configuration for high-quality DeFi projects in the future. However, the deeper insight is that an excellent mechanism is just the foundation; true long-term value creation depends on the governance wisdom of the DAO, specifically how to use this mechanism to guide ecological resources toward the most growth-potential directions, thereby gaining an advantage in the new wave.

The journey of JST's value has just begun. We welcome you to continue following the official channels of TRON ECO to witness the next breakthrough in the ecosystem together.

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