JustLend DAO launches the second round of buyback and burn: 525 million JST permanently burned, with the deflationary engine continuing to accelerate

JustLend DAO recently completed its second large-scale JST token buyback and burn, permanently removing 525 million JST tokens. This action was supported by the ecosystem’s strong quarterly earnings and reserve funds, marking JST’s transition from a governance token to an equity asset anchored to real cash flows.
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JST tokens officially completed their second large-scale buyback and burn on January 15, 2026. This burn not only demonstrates the project’s firm commitment to a deflationary mechanism but also, with a burn scale of 525,000,000 JST (accounting for 5.3% of the total supply), showcases the strong profitability and financial health of the JUST ecosystem to the entire cryptocurrency market.

According to the official announcement from JustLend DAO, the estimated value of this burn exceeds 21 million USD. Combined with the amount from the first round of JST burns, the total JST tokens burned have reached 1,084,890,753, accounting for 10.96% of the total supply. This means that in less than three months, JST has achieved the permanent removal of over one-tenth of its total supply, with a remarkable deflation rate.

From a macro perspective, this burn signifies a fundamental evolution in JST’s value narrative. It is shifting from a governance token to an equity asset anchored to the growth of ecosystem cash flows. This process not only enhances JST’s scarcity and value foundation but also provides a clear, revenue-driven path for DeFi, demonstrating transparency and sustainability in its deflationary model.

JustLend DAO ecosystem performs strongly, laying a solid financial foundation for large-scale buybacks

Such a large-scale buyback and burn require a robust financial base. The announcement clearly reveals two main sources of funds: up to $10,192,875 from JustLend DAO’s net profit in Q4 2025, and an additional $10,340,249 from accumulated reserve earnings. These figures themselves are strong proof of performance, pointing to a core fact: the JustLend DAO ecosystem not only has strong immediate profitability but also maintains a solid financial structure and sustainable cash flow, which are the bedrock for fulfilling buyback commitments and advancing the deflationary strategy.

A detailed analysis of JustLend DAO’s Q4 2025 performance reveals several clear growth trajectories. First, as the flagship lending protocol of the JUST ecosystem, JustLend DAO benefits from the continuous improvement of TRON infrastructure, with its total value locked (TVL) surpassing $7.08 billion in Q4, maintaining a top position in the lending market and seeing active borrowing in its SBM market reach new cycle highs.

It is noteworthy that the $10,340,249 reserve earnings, a significant part of the buyback funds, originate from the reserve deposited into the SBM USDT market during the first JST buyback. The appreciation of this fund directly demonstrates the strong profitability of the SBM market. It showcases JustLend DAO’s sophisticated financial operation model: strategically reinvesting ecosystem profits to enable internal “self-replenishment,” providing an endogenous and sustainable source of funds for future value returns.

Building on this, JustLend DAO’s revenue structure is becoming more diversified. Besides the steady growth of traditional lending markets, it has innovatively developed product matrices such as sTRX (Staked TRX) and Energy Rental, greatly expanding its value capture boundaries and depth.

For example, the sTRX service allows users to stake TRX to earn rewards while still participating flexibly in other DeFi activities. This innovative design significantly improves capital efficiency and user engagement. According to official data, as of January 15, the platform’s staked TRX has exceeded 9.3 billion tokens, reflecting high community recognition for the sTRX product and generating substantial, sustainable service income.

Meanwhile, the Energy Rental service, aimed at reducing on-chain operation costs, has shown strong market appeal through active rate optimization. Since September 2025, the base fee rate for this service was reduced from 15% to a more competitive 8%. This rate optimization directly stimulates market demand and trading frequency, creating steady incremental revenue for the protocol through more active leasing activities.

While core products continue to advance, JustLend DAO also focuses on lowering barriers for general users. In March 2025, it launched GasFree smart wallet, which completely breaks the long-standing barrier that users must hold native tokens (TRX) in advance to pay transaction fees. It allows users to deduct and pay network fees directly from their transferred token assets (such as USDT). This design not only offers ultimate operational convenience but also fundamentally broadens the accessibility of blockchain finance.

To accelerate the adoption of this innovation, JustLend DAO simultaneously launched an attractive 90% transfer fee subsidy campaign. Under this promotion, users can perform USDT transfers via GasFree with only about 1 USDT in transaction fees. This combined strategy quickly ignited market demand. As of January 15, the total transaction volume driven by GasFree smart wallet has exceeded $46 billion, demonstrating the market’s strong desire for frictionless trading experiences and directly saving users over $36.25 million in network fees. This innovation, by significantly reducing actual costs and cognitive barriers, has introduced a large influx of users and capital flow into the ecosystem, forming another powerful growth driver for network effects and revenue potential.

Meanwhile, another funding channel in the buyback and burn plan—incremental revenue from the USDD multi-chain ecosystem (exceeding $10 million)—also constitutes an important source of value. As TRON’s core decentralized stablecoin, USDD’s multi-chain expansion has achieved remarkable results, successfully deploying on Ethereum, BNB Chain, and other major blockchains, broadening application scenarios and user bases.

Its ecosystem value recently reached a milestone: on January 14, USDD’s TVL (Total Value Locked) broke through $1 billion for the first time. This means that in less than two months, USDD’s TVL has doubled, achieving an astonishing 100% growth, fully demonstrating the strong momentum and deep asset appeal of this stablecoin within multi-chain ecosystems. The rapid growth of TVL and ecosystem prosperity significantly enhance the future potential scale of this funding channel, providing expected value sources for JST’s subsequent quarterly buyback and burn plans.

USDD’s deep integration with various DeFi protocols not only consolidates its peg stability but also creates continuous value inflows for the entire ecosystem. The JST buyback and burn plan incorporates excess income from the USDD ecosystem, forming a “stablecoin + lending protocol + governance token” value loop. In this model, USDD’s expansion and prosperity directly drive JST’s deflation, while the rising value of JST further enhances the attractiveness and cohesion of the TRON DeFi ecosystem, creating a strong internal synergy and value feedback loop.

Deepening deflation: a revolutionary reshaping of JST’s value foundation

In summary, the significance of this buyback and burn goes far beyond mere price support; it is triggering a series of profound structural changes. At its core, it completes a fundamental reshaping of JST’s value support logic. JST is no longer just a “tool token” used for paying network fees or governance voting; it has evolved into a “stakeholder asset” directly anchored to JustLend DAO, USDD, and related ecosystem cash flows.

Through the buyback and burn mechanism, the ecosystem’s profit growth is continuously injected into JST’s value foundation, making holding JST equivalent to holding a certificate of entitlement to share future profit growth of the ecosystem. On January 8, CoinMarketCap data showed that JST’s market cap broke through $400 million for the first time, marking a substantial recognition of its new positioning. Along with the market cap increase, capital activity also surged: on January 8, its 24-hour trading volume increased by 21.92% to $31.49 million, and its price rose steadily by 10.82% in the past month, with intraday gains of 3.1%.

The synchronized expansion of trading volume and market cap at key nodes is not accidental market fluctuation but a clear “vote of confidence” from capital, reflecting the positive fundamentals of the JUST ecosystem, especially the profitability and value feedback demonstrated by buyback and burn.

Furthermore, JST’s buyback and burn also bring substantial governance power enhancement. As the total supply irreversibly decreases, each remaining JST in the market will have an increased governance weight. This means long-term holders not only enjoy economic benefits from value appreciation but also gain greater influence in key community decisions (such as parameter adjustments, new product launches, treasury fund utilization). This design deeply aligns the interests of core community members with the long-term success of the protocol, greatly strengthening community stability and participation.

From a broader industry perspective, JST’s buyback and burn practice provides a clear, verifiable new paradigm for token economics in DeFi. Removing 10.96% of total supply through two rounds of burns in a very short period demonstrates high efficiency. More importantly, it deeply links the protocol’s financial success with token holders’ interests, establishing a “value creation - value feedback” virtuous cycle.

This model fundamentally reverses the old logic of token value relying on speculative narratives, shifting instead to a sustainable path driven by the protocol’s cash flows, providing a solid and credible example for how to build a token economy with real value support.

Looking ahead, as quarterly buybacks and burns become routine, a clear and predictable deflationary path is laid out. JST’s scarcity will be an increasingly reinforced narrative over time. Every quarterly report and subsequent burn will serve as a catalyst for re-evaluating its intrinsic value. This burn is not the end but the beginning of a more grand chapter of value accumulation—a revolution driven by ecosystem profitability and product synergy, with the accelerator already pressed.