Have you ever wondered why some DeFi projects can sustain themselves?



Taking deflationary tokens as an example, the core strategies are these three pillars—ultra-fast deflation + liquidity distribution + reverse control of large holders. When combined, the effect is truly different.

Liquidity distribution is a good thing. The higher the trading volume, the more active the pool, and liquidity naturally grows. DeFi is never about market cap; it's about whether the pool is deep enough. A deep pool attracts more trading.

Looking at deflation—regardless of where the token price skyrockets, the underlying mechanism will trigger token burns, at least burning one trillion tokens. The key point is, the burn amount has little relation to the token price; it’s fixed at this number. As a result, the circulating supply continuously shrinks. All these burned tokens come from market transactions, which are then destroyed via the underlying pool. In simple terms, it’s using exit funds to help reduce selling pressure for those still holding.

Think about this logic—money left behind by those who exit is used to burn tokens held by those still playing. Doesn’t this push the entire market upward? Less selling pressure means more room for the token price to rise.

So what if there’s no trading volume? The community can set up pairing pools, such as pairing with well-known tokens for trading, allowing other popular tokens to facilitate trading of the project’s tokens. Even during quiet times, the trading volume of other tokens can support the price, gradually pushing it upward.

Here’s an interesting phenomenon—once the token keeps hitting new highs at certain stages, even those who don’t understand the mechanism can see clearly: this token is really strong. Continuously breaking historical highs is the most convincing proof of its strength.
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OnChainArchaeologistvip
· 10h ago
It sounds nice, but basically it's just robbing Peter to pay Paul. Early investors' money is burned to support those who come later, covering the selling pressure. I've seen this trick many times.
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BearMarketSurvivorvip
· 18h ago
Listen... I've seen this deflation + burning logic too many times. Every time, it sounds great, but what happens? Early investors still end up losing big.
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BearMarketBrovip
· 18h ago
Hmm... It sounds like using retail investors' money to burn coins, and the people who stay feel like they've made a profit. I've seen this trick many times.
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LiquidityWitchvip
· 18h ago
yo so they're really just brewing alpha through liquidation sacrifices huh... the whole "dead exit liquidity feeds the holders" part is lowkey genius tbh, but also mad sus. feels like watching protocol alchemy in real time ngl
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AlwaysAnonvip
· 18h ago
Exactly, the depth of the pool truly determines everything; the market cap approach is already outdated.
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BearMarketSunriservip
· 18h ago
You're right, liquidity is the key, and the focus on market cap should have been abandoned long ago. But ultimately, it still depends on whether the community and team are reliable; no matter how impressive the mechanism is, it can't withstand a loss of trust.
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