HTX DAO conducts large-scale token burns, continuously strengthening deflationary logic

On April 15, HTX DAO announced the token burn for the first quarter of 2025. According to the announcement, approximately 113 trillion $HTX tokens were burned this quarter, estimated to be worth about $19.2 million at current prices. Meanwhile, as of now, HTX DAO has cumulatively burned over 609.7 trillion $HTX since its inception, valued at approximately $114 million, demonstrating strong deflationary execution and high transparency. This burn was based on the HTX DAO governance mechanism, which allocates 50% of the revenue from Huobi HTX in the first quarter of 2025 for token burning. The burn funds were primarily executed through the Sun.io channel and publicly recorded on-chain. Users can check specific burn details through the transaction hash.

It is worth noting that in the first quarter of 2025, Bitcoin fell from a peak of nearly $110,000 to $70,000, a decline of over 30%. According to Coingecko data, the average daily trading volume of cryptocurrencies across the network dropped from $20.07 billion to $14.6 billion, a decrease of 27%. In the overall downward environment, the quarterly burn volume of HTX DAO only declined by 15%.

At the same time, the HTX DAO holding voting tool has recently been launched, allowing users to participate in community governance and proposal voting through holding $HTX. In the future, HTX DAO will continue to enhance community consensus, support ecological prosperity, and co-build a self-governing financial ecosystem in the Web3 era with users.

Compared to many "paper DAOs" and projects that merely shout about burning in the crypto industry, HTX DAO's burn actions not only have verifiable authenticity on-chain but also reflect its long-term strategic approach to deflationary models and ecological construction. We analyze this burn event from multiple dimensions to restore a more realistic and rational development picture of HTX DAO.

1. Burning is not a gimmick, but part of the DAO governance mechanism

In the early days of the crypto industry, the common "burn" operation was often a "market value management" behavior done by project parties without community consent or transparent mechanisms to stimulate prices in the short term. In contrast, HTX DAO established a "verifiable income - automatic repurchase - on-chain burn" model at the end of 2023, providing a strong institutional foundation for burning.

The burn mechanism of HTX DAO includes:

• Income linkage: A certain proportion of ecological income (such as transaction fees, platform income, etc.) is used to repurchase HTX;
• On-chain transparency: All burn addresses and transaction records are traceable, with real-time data synchronization;
• Clear cycles: Burn announcements and hash information are released quarterly on schedule, subject to community audits;
• Governance constraints: The DAO governance mechanism supervises and adjusts the repurchase and burn ratios and execution frequency.

Therefore, the burn of HTX DAO is not a short-term market behavior but a deflationary "realization" action under a systematic design, with long-term compounding effects.

2. Value fluctuations in burning reflect rational market mechanisms

Compared to Q4 2024, the total value of burns in Q1 2025 slightly decreased (Q4 2024 was $22 million, Q1 2025 was $19.2 million), raising concerns among some investors. However, from a mechanism perspective, this decline precisely reflects the rationality and non-manipulative nature of HTX DAO's operations:

• DAO income fluctuations are normal and depend on the overall trading activity in the market;
• Repurchase funds come from real income, not virtual allocations or pre-advanced market value;
• The quantity and pace of burning follow an established model and are not adjusted temporarily due to "market value anxiety."

This indicates that the value growth path of HTX DAO does not rely on "artificial beautification," but follows a verifiable and sustainable path of "growth + deflation."

3. Reduced circulation, increased scarcity, value logic is being realized

Currently, the deflationary trend of HTX DAO is very evident:

• Cumulative burn: Over 970 trillion HTX, with an increasing proportion in the initial total;
• Total circulation reduction: The scarcity of HTX in the hands of long-term holders is continuously increasing;
• Healthy token model: Low inflation and high burn make HTX a "rare net deflationary asset" in the exchange ecosystem.

From Ethereum's (ETH) EIP-1559 model to BNB's quarterly burns, deflationary assets have been repeatedly validated by the market as one of the core logics supporting long-term value. HTX DAO is continuously advancing along this mature logic, and its mechanisms for staking, governance, and nodes form positive feedback with the burn system. The deflationary logic of HTX DAO is not only a Tokenomics design but also a value consensus: the less circulation, the stronger the value of a single token; the larger the ecosystem, the more burning occurs, and the higher the value.

4. Comparative analysis: Scarcity execution power in DAO governance

Currently, there are many projects in the market that claim to be "DAOs," but few can truly implement governance proposals and fulfill mechanism benefit distributions. One of the main characteristics of HTX DAO is that its execution power and transparency are genuinely visible on-chain.

Comparison with common issues in other DAOs:

Therefore, from the perspective of mechanism reliability, HTX DAO can be considered one of the most efficient in execution, the clearest in deflationary logic, and the most transparent in financial data among leading samples in the current DAO ecosystem.

5. DAO is not a slogan, but a value realization mechanism

From the Q1 burn data, HTX DAO continues its steady growth path: maintaining nearly $20 million in repurchase and burn despite income fluctuations, with on-chain transparency, high community acceptance, and continuous optimization of circulation structure. All these factors together form a key judgment: HTX DAO is on a path that truly allows DAOs to "fulfill promises" and realize the long-term value of tokens.

With market recovery, ecological expansion, and increased user activity, we have reason to believe that the burn data for each quarter in the future will become a highly persuasive "milestone" on HTX DAO's growth path.

This is not only a verification of the mechanism but also a practical answer to the question of "Can DAOs work?"

About HTX DAO

As a multi-chain deployed decentralized autonomous organization (DAO), HTX DAO showcases an innovative governance approach. Unlike traditional corporate structures, it adopts a decentralized governance structure composed of diverse groups, collectively committed to promoting the success of this organization. Its unique ecosystem advocates open values and encourages all ecological participants to propose suggestions that can facilitate the development of HTX DAO.