JST Deflation Continues to Advance! JustLend DAO Completes Second Burn of 525 Million Tokens, Over 10.96% Total Burned, Protocol Revenue Strongly Empowering Long-Term Value

@DeFi_JUST Community Officially Announces: The second round of JST buyback and burn has been successfully completed. This milestone further reinforces JST's deflation mechanism and highlights the long-term value creation logic driven by genuine protocol revenue. The following provides a professional analysis from three dimensions: mechanism design, burn intensity comparison, and ongoing execution path.

1. Logic and Mechanism Analysis of the Second Buyback and Burn

JustLend DAO’s deflation model centers on protocol net revenue as the core anchor, including lending fees, SBM market interest, and USDD multi-chain ecosystem excess profits (over $10 million). Of the initial approximately 59 million USDT in accumulated revenue, about 30% (around 17.7 million USDT) was used for buyback and permanent burn of about 560 million JST (approximately 5.66% of total supply). The remaining 70% (about 41.4 million USDT) has been deposited into JustLend DAO’s SBM USDT market to generate ongoing yields, with the incremental earnings combined with quarterly net income used for subsequent buybacks.

As the first quarter after the initial round, the second round continues the phased release principle: each quarter, a predetermined proportion (about 17.5% of remaining reserves + previous quarter’s incremental revenue) is used for buyback and burn until Q4 2026 to complete the remaining portion. This design ensures a smooth, predictable, and sustainable deflation process, avoiding market volatility caused by large one-time burns. Meanwhile, by reinvesting funds within the protocol (interest generation → buyback), a closed-loop amplification effect is formed, truly realizing the long-term flywheel of “ecosystem revenue growth → intensified deflation → increased token scarcity → positive feedback on value.”

2. Current Burn Intensity of JST Compared to Mainstream DeFi Protocols like UNI

JST’s deflation strength is among the leading in the current DeFi space: the first round burned 5.66% of supply, with an overall planned (including future quarters) cumulative burn ratio expected to exceed 20%, directly anchored to verifiable protocol revenues (over $59 million USDT, with continuous growth alongside TVL and USDD). This mechanism essentially transforms JST from a purely governance/utilitarian token into a “revenue-driven deflationary asset.”

In comparison:
• UNI (Uniswap): Although the protocol fee switch has been activated and deflation discussions initiated, actual burns are still in proposal and early implementation stages, with lower certainty and strength, mainly relying on community governance, and have not yet formed a systematic model tightly linked to protocol income.

• AAVE: Focuses on dynamic interest rate models, flash loans, and cross-chain features. The announced buyback fund size in 2025 is only about $24 million, with a relatively limited burn ratio (far below 5%), relying more on market incentives rather than mandatory deflation.

• COMP (Compound): Uses liquidity mining and algorithmic interest rates for incentives but lacks a large-scale burn mechanism directly tied to protocol profits. Its deflation is mainly influenced by market dynamics.

JST’s model is closer to traditional corporate “profit-driven share buybacks and cancellations,” with higher execution and sustainability in DeFi, becoming a benchmark case for deflation design in the industry.

3. Market Feedback from the First Burn and Ongoing Second Burn

After the first burn, market reactions were positive: JST’s price exited the downtrend, forming higher lows and highs, with short-term growth potential of 20%-25%; community discussion activity increased significantly, and on-chain activity and holder confidence were strengthened, validating that real deflation supports token value.

The phased quarterly execution of the second round further consolidates this positive cycle: maintaining continuity and predictability of deflation, while amplifying long-term effects through efficient reinvestment within the protocol. This strategy demonstrates JustLend DAO’s high standards in governance maturity and value distribution, avoiding short-term speculation and instead building a sustainable ecological value loop.

Summary
JustLend DAO exemplifies the core logic of DeFi 2.0: true value stems from genuine protocol revenue, not hollow narratives. JST’s deflation path has moved from concept to measurable long-term execution. Against the backdrop of continuous prosperity in the TRON ecosystem, its positioning as a revenue-capturing governance asset is becoming increasingly clear. For investors optim