On October 21 (SGT), JustLend DAO—the flagship DeFi protocol of the TRON ecosystem—reached a major milestone with the successful completion of its first large-scale JST burn. This marks JST’s evolution from a fully circulating token into a continuously deflationary asset.

As announced, JustLend DAO has allocated over 59 million USDT from its accumulated protocol revenue. Of that amount, 30% has already been deployed to buy back and burn 560 million JST. The remaining 70%, over 41 million USDT, will be burned in phases over four quarters.

JST Deflation Advances: First Burn Retires 5.66% of Supply, Over $41M Still to Come

Unlike short-term subsidy-driven buybacks, JST’s deflation is powered by real, recurring profits from JustLend DAO and USDD, the twin pillars of the TRON ecosystem. By anchoring JST’s value directly to protocol earnings—grounded in existing revenue and continuously replenished by new profits—the model creates a clear, sustainable deflationary cycle that stands in stark contrast to typical one-off buyback schemes.

Buyback funding comes from two sources: first, JustLend DAO’s net income, encompassing both the current reserves and future earnings; second, USDD’s incremental revenue, once its multi-chain operations surpass $10 million in profit.

According to the announcement, JustLend DAO pulled over 59 million USDT from accumulated revenue and adopted a phased approach: 30% for the first tranche and 70% to be burned quarter by quarter. The initial tranche is now complete—roughly 17.72 million USDT (30% of the current reserve) was used to burn about 560 million JST, representing close to 5.66% of total supply. The remaining 70%, or over 41 million USDT, will be burned across four quarters. In the interim, these funds are held as jUSDT in JustLend DAO’s SBM USDT market to generate yield, with those proceeds also earmarked for future buybacks and burns.

Building on incremental earnings, JustLend DAO will channel each quarter’s new net income into the buyback pool, while USDD’s profits—once they reach target levels—will also feed into the cycle. Future buybacks and burns will be

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Author: News Desk