2025-12-26 01:35:43

A key governance proposal from a leading DEX has just been finalized. This week, the community vote officially approved the fee switch activation plan, which means that the fee mechanisms for V2 and V3 versions will soon go live on the mainnet. After the waiting period ends, the entire ecosystem will feel the impact of this upgrade.

More importantly, this proposal also involves a major move—the destruction of 100 million governance tokens from the foundation treasury. This deflationary mechanism is becoming increasingly common in the DeFi space and is often interpreted by the market as a positive signal. The reduction in token supply is theoretically expected to boost scarcity in circulation.

For users participating in the ecosystem, enabling the fee switch means a more flexible economic model. Whether you are a liquidity provider or a trader, you need to pay attention to how these parameter changes might affect your returns. From the foundation’s perspective, the large-scale token burn also demonstrates a commitment to long-term ecosystem health—this is not just a simple technical upgrade but a subtle adjustment to the overall DeFi market landscape.

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DaoResearcher

· 4h ago

Based on the voting data of the governance proposal, the assumption of destroying 100 million tokens can be valid within a 95% confidence interval. However, the key question is—are the activation parameters for the fee switch truly reasonable? It is recommended that everyone review Section 3.2 of the white paper before making any claims.

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DeFiDoctor

· 4h ago

Burning 100 million tokens sounds impressive, but to really understand the data, you need to ask what percentage of the circulating supply it represents. Otherwise, it's just a virtual number to comfort the market.

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LiquidationWatcher

· 4h ago

1. 100 million tokens burned? Now you really need to keep an eye on it, afraid it's just a tactic to stabilize the market. 2. Burning is burning, but the key still depends on how the fee switch is adjusted; otherwise, the returns will still shrink. 3. Brothers relying on this deflation to pump the market, that's too naive... 4. Let's wait and see, during the V2 to V3 upgrade, there will definitely be pitfalls to jump over. 5. Deflation is a good thing, but I'm concerned whether the LP's annualized return will plunge. 6. Sounds good, but isn't it just to stabilize retail investors and keep them playing? 7. If LSD also moves along with this wave, the ecosystem will really have some drama. 8. Flexible fee configuration... sounds like a way to cut costs for big players. 9. The burn action is good, but how many chips are left in the treasury to use? 10. After all this hype, when it finally launches, there's not much reaction; DeFi is just like that.

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GateUser-ccc36bc5

· 4h ago

1 billion tokens burned sounds good, but whether the actual benefits can reach retail investors depends on how the parameters are adjusted later. Once the fee switch is activated, LP earnings will need to be recalculated, so we must keep a close eye on this. Burning tokens is a tactic that Web3 has played out, the key still lies in execution and subsequent ecosystem development. Wow, the deflationary mechanism is back... but compared to those zero-value projects, at least this one has a solid fundamental support. Wait, will the V3 fee mechanism become ruthless after launch? I'm afraid small retail investors might get caught again. Burning 1 billion tokens indeed increases scarcity, but if inflationary tokens are issued more, all previous efforts will be in vain. This upgrade seems to be paving the way for subsequent monetization; be careful not to get caught off guard. The flexibility of parameters depends on how the foundation sets them; otherwise, it’s just another "seems beneficial" scenario. Burning tokens is one thing, but liquidity in trading pairs is the real deal. Token scarcity is useless if no one uses it.

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BlockchainArchaeologist