Honestly, recently a bunch of people have been calculating the UNI burn event with calculators, and while watching, my eyes never left the candlestick chart. 100 million tokens burned, market cap skyrocketing—wow, it seems like just having this number can make it take off. But if you ask me, there's much more beneath the surface than meets the eye.

Let me directly state the conclusion: this is not a routine market operation at all, but rather a "debt-clearing transformation" accumulated over five years by a leading DEX. Those who understand this logic will likely be able to share a slice of the next market rally; otherwise, they might just be circling around various concept hype.

Starting with history. In 2020, when this project was launched from zero, it was actually cornered. Vampire attacks from similar competitors almost drained the entire liquidity pool. The survival strategy at that time was simple—stay alive. So, the token distribution policy back then was entirely "loose mode": aggressive issuance, large-scale incentives, dispersed power—regardless of subsequent risks, the priority was to stabilize the market first.

After enduring five years like this, the problem arose. The market's tokens increased, but retail holders held these tokens with less and less confidence. No dividends, no transaction fee income, token holders' rights are just a "voting power + emotional gambling" combo. The pricing logic entirely depends on how good the story is told. In other words, the value of this thing is entirely based on expectations.

Now, this 100 million tokens burned means something completely different. Pay attention to two key points: permanent removal and disappearance from the ledger. This is not a delayed unlock or a freezing mechanism; it’s a direct cut of 10% from the total issuance, and it’s an irreversible operation at the technical level.

How clear is this signal? It means the previous model of "maintaining ecosystem vitality through continuous token issuance" is completely over. The precondition is that the project team is saying: our ecosystem no longer needs to rely on releasing incentives to attract participants, but instead aims to enhance the token’s economic model through scarcity reconstruction.

Many people think scarcity is just hype, and I have to chuckle at that. The real scarcity lies in—when you truly cut the total supply, and this operation cannot be reversed at the code level, the pressure on circulating supply will naturally decrease. This is not a psychological game but a hard supply constraint. If trading activity can be maintained or even increased in the next few quarters, what once seemed impossible will become possible.