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TRON Ecosystem’s Deflationary Shift: JustLend DAO Ignites JST Token Burn Mechanism

TRON Ecosystem’s Deflationary Shift: JustLend DAO Ignites JST Token Burn Mechanism

Author:
TRX News
Published:
2025-10-25 16:00:26
20
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[TRADE_PLUGIN]TRXUSDT,TRXUSDT[/TRADE_PLUGIN]

In a landmark move for the TRON ecosystem, JustLend DAO has successfully executed its inaugural JST token buyback and burn, transitioning the cryptocurrency from a fully circulating supply to a deflationary model. This strategic implementation, carried out on October 26, 2025, represents a significant evolution in the tokenomics of TRON's flagship DeFi protocol. The protocol allocated a substantial 59 million USDT from its accumulated revenue reserves, with an immediate deployment of 30% to permanently remove 560 million JST tokens from circulation—equivalent to 5.66% of the total supply. This initial burn establishes a strong deflationary foundation, while the remaining 41 million USDT is strategically scheduled for phased burns across the subsequent four quarters. The systematic reduction in JST supply through this multi-phase approach creates fundamental scarcity dynamics that could potentially drive long-term value appreciation. As TRON continues to strengthen its DeFi ecosystem, this deflationary mechanism positions JST for enhanced utility and valuation prospects within the broader cryptocurrency market. The carefully structured burn schedule demonstrates JustLend DAO's commitment to sustainable token economics while providing predictable supply reduction that market participants can factor into their investment strategies. This development marks a crucial milestone in TRON's maturation as a comprehensive blockchain ecosystem capable of implementing sophisticated economic models that rival traditional financial systems while leveraging the unique advantages of decentralized finance.

JustLend DAO Completes First JST Buyback and Burn, Initiating Deflationary Cycle

JustLend DAO, the flagship DeFi protocol within the TRON ecosystem, has executed its first large-scale JST token burn, marking a pivotal shift from a fully circulating supply to a deflationary model. The protocol allocated 59 million USDT from accumulated revenue, deploying 30% to destroy 560 million JST—5.66% of the total supply—with the remaining 41 million USDT slated for phased burns over four quarters.

The deflation mechanism diverges from subsidy-driven buybacks by anchoring JST's value to recurring revenue streams from JustLend DAO and USDD. Funding sources include net protocol income and future USDD profits once multi-chain operations exceed $10 million. This creates a sustainable deflationary cycle tied directly to ecosystem growth.

Altcoins Show Strength as Bitcoin Dominance Faces Resistance

Altcoins are demonstrating robust technical positioning as Bitcoin struggles to decisively break key levels. The Total2 chart, tracking all cryptocurrencies excluding Bitcoin, paints a bullish picture with consistent higher highs and higher lows since the bull market's inception. A recent all-time high in this metric suggests further upside potential.

Market structure remains favorable with altcoin capitalization firmly above critical support. The Stochastic RSI indicator hints at impending upward momentum as it approaches oversold territory. For sustained altcoin outperformance, however, Bitcoin's market dominance must decline further.

The weekly BTC.Dominance chart shows the prolonged uptrend from late 2022 has finally broken. While bitcoin briefly regained ground during recent market turmoil, altcoins were quickly bought back—a sign of persistent demand among traders rotating out of the market leader.

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By eliminating intermediaries, PactSwap claims to offer 95% lower fees than conventional cross-chain solutions while maintaining decentralized, non-custodial security. The protocol aims to combine CEX-like liquidity with DeFi transparency, potentially reshaping how traders MOVE value between incompatible blockchains.

Crypto Market Volatility: XRP, Solana, and TRON Emerge as Top Picks

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XRP continues to dominate discussions with its focus on cross-border payments, backed by major financial institutions like Santander and American Express. Its market cap of approximately $143.8 billion underscores its prominence.

Solana and tron are also carving out niches, demonstrating robustness despite regulatory pressures and price swings. Their long-term investment appeal is increasingly recognized.

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