The JST large-scale repurchase and destruction plan has been launched, constructing a sustainable "value flywheel" by injecting the protocol's net income into a deflationary model.

Recently, the JustLend DAO governance community officially passed the JST repurchase and destruction mechanism proposal and completed the first large-scale repurchase and destruction 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 to repurchase and destroy JST, executed transparently on-chain.

According to the latest destruction announcement, JustLend DAO's total stock income amounts to 59,087,137 USDT, of which 30% (equivalent to 17,726,141 USDT) will be used to repurchase and destroy 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 destruction 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 returning to the community." The successful launch of this mechanism raises deeper questions: How will JST's deflationary path 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 on "income repurchase" 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 repurchase and destruction plan. This article will take you through this intellectual collision, exploring the deep logic and industry insights behind the JST repurchase and destruction plan.

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

In the Space discussion about the JST repurchase and destruction proposal by JustLend DAO, the first speaker, Joy, vividly illustrated the core logic of the mechanism through an analogy. She pointed out that the JST deflationary model essentially introduces the traditional public company's "profit repurchase and cancellation of stocks" value feedback model 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.

Guest Aster further deepened this viewpoint from the perspective of value distribution. He interpreted the repurchase and destruction 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 can not only elevate token prices through actual deflation, benefiting all holders, but also transparently showcase protocol income, incentivizing market attention and participation, thus forming a positive cycle of "higher profits—more repurchases—stronger ecosystem." In his view, this is the core logic of the proposal.

Regarding whether the phased destruction strategy can balance market expectations and supply-demand, guest MARK first expressed confidence from the perspective of intensity and ecological linkage. He pointed out that compared to other protocols' "millions of dollars" repurchase scale, JST's approximately sixty million dollar repurchase and destruction plan is "very substantial, giving the market great confidence." In the long run, as protocol income continues to grow, the support for repurchase and price premium guarantees are solid. However, he objectively added that after a price increase driven by expectations, there is pressure for a pullback 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 analysis 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 surge due to high attention in the short term, followed by a pullback due to a slowdown in pace. However, he predicted that compared to a one-time repurchase, this phased model will make the pullback "not very large," and the trend will be "relatively smooth."

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

From Value Support to Governance Wisdom: How JST Repurchase and Destruction Reflects DeFi Ecological Values

When discussing the far-reaching impact of the JST repurchase and destruction mechanism on the TRON ecosystem, guest Hong Kong Wang Fugui straightforwardly affirmed its pivotal role. He believes that JST, as the core governance token connecting multiple protocols, 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.

Guest 0xLeon also believes that JST plays a "key role in connecting the dots" within the TRON ecosystem, linking various protocols into an organic whole. However, he sharply emphasized that the repurchase and destruction 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 can drive ecological prosperity, thus completing the leap from "value circulation" to "value growth."

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

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

The JST repurchase and destruction is not only an experiment in its own deflation but also a deep exploration of "governance value" and "economic model sustainability" within the TRON ecosystem and the entire DeFi world. Guests unanimously agreed that a transparent, net income-based repurchase model provides an effective solution to the industry's core problem of token value capture, and it is highly likely to become a standard configuration for future quality DeFi projects. 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, thus seizing the initiative 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.

Medium: https://medium.com/@eco.news

Mirror: https://mirror.xyz/0x36804BEe4B0FdCE6BcDE5ec9D26F36310235DeB5

JUST DAO official X account: @DeFi_JUST

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