Who is the DeFi deflation ceiling? The data speaks!

Today, we will compare JST's current burn intensity with mainstream DeFi protocols such as Uniswap (UNI), Aave (AAVE), Compound (COMP), and MakerDAO (MKR) in detail. Who is stronger, who is weaker? You'll know soon!

JST's burn mechanism: Structured deflation, revenue-driven

The JUST platform implements a highly structured token burn plan through the JustLend DAO. Since its launch in October 2025, JST has burned a total of 1.085 billion tokens, accounting for 10.96% of the total supply, worth approximately $44.83 million. The specific mechanism is as follows:

• Revenue allocation: 30% of protocol income is directly used to buy back and burn JST, while the remaining 70% is invested in yield-generating pools (such as stUSDT). The generated yields are used for subsequent burns, forming a "value flywheel."

• Recent execution: On January 15, 2026, JustLend DAO completed its second large-scale burn, destroying 525 million JST (5.3% of total supply), worth about $21 million. This pushed the quarterly burn rate above 5%, far higher than the industry average.

• Long-term goal: With continuous revenue driving, JST's supply is expected to decrease by more than 20%. JustLend DAO's TVL has exceeded $7.08 billion, and the USDD stablecoin TVL has reached $1 billion. These strong fundamentals support the sustainability of the burns.

This mechanism transforms JST from a simple governance token into an equity asset linked to ecosystem cash flow, ensuring deflationary pressure aligns with protocol growth.

Comparison with UNI: JST's burn intensity is more aggressive

Uniswap (UNI) activated the fee switch through the "UNIfication" proposal at the end of 2025, enabling token burns. UNI has a total supply of 1 billion tokens, with about 101.7 million burned (10.1%), worth approximately $596 million. The annual burn rate is about 4-5 million tokens (0.4-0.5% of total supply).

• Mechanism differences: UNI burns rely on trading fees (such as 0.05% in v2 pools and partial fees in v3 pools), with an annual protocol fee of about $26 million. In comparison, JST's quarterly burn rate (5%+) is much higher than UNI's annual rate, and JST's 30% direct burn + 70% yield recycling is more efficient.

• Notable advantages: JST's burns are more predictable and aggressive. The cumulative burn ratio is close to UNI, but JST's planned supply reduction target (20%+) is more ambitious, suitable for high-deflation investment strategies.

Comparison with other mainstream DeFi protocols

AAVE: Buyback rather than burn, limited deflationary effect

AAVE's total supply is 16 million tokens, with 94.91% in circulation. AAVE uses a "fee switch" mechanism to buy back tokens (pilot at $1 million weekly, over $50 million annually), but these tokens are mainly distributed to stakers rather than permanently burned. No clear burn statistics, supply is nearly fully unlocked.

• Comparison: JST's permanent burns vs. AAVE's buyback and distribution, JST directly reduces supply and enhances scarcity.

COMP: No burn mechanism, risk of supply expansion
Compound (COMP) has a total supply of 10 million tokens, with 96.68% in circulation. COMP relies on emission incentives (such as 1,139 tokens distributed daily) but has no burn mechanism. Market capitalization is about $420 million, with circulating supply continuously increasing.

• Comparison: JST's revenue-driven burns are far superior to COMP's pure emission model, with JST focusing more on holder value.

MKR: Surplus-dependent burns, high volatility

MakerDAO (MKR) burns tokens through surplus auctions, with a total supply of about 1 million (FDV $141 million). In the dual-token system (MKR and SKY), MKR has burned 10-20% during migration. Burnings depend on system surpluses exceeding debts, with an unpredictable annual burn rate (e.g., $1.39 million burned in a single week).

• Comparison: MKR's burns are more passive and heavily affected by market fluctuations; JST's structured allocation is more stable and predictable.

Summary of JST's burn advantages

• Leading intensity: JST burns over 5% quarterly, with a total of 10.96%, and plans to reduce supply by over 20%, far surpassing UNI's 0.4-0.5% annual rate and MKR's volatile burns.

• Sustainability: Tied to protocol revenue (JustLend DAO TVL over $7.08 billion), forming a positive feedback loop rather than relying solely on fees or surpluses.

• Investment value: In the competitive DeFi space, JST's deflationary model is more attractive, better capturing ecosystem growth and potentially increasing token value.

So, who is the DeFi deflation ceiling? Do you have the answer now?

@justinsuntron @DeFi_JUST #TRONEcoStar