HTX DAO Announces Successful $HTX Token Burn for Q3 2024, Exceeding $21.25 Million
Singapore, Singapore, October 17th, 2024, Chainwire
HTX DAO announced the successful completion of its $HTX token burn for Q3 2024. In the quarter alone, over $21.25 million worth of $HTX tokens were burnt. This marks a significant shift in the platform’s liquidity strategy, as HTX DAO has opted to discontinue its previous ecosystem liquidity pledge mechanism in favor of a simpler and more effective token burn mechanism to enhance the long-term appreciation and supply-demand balance of $HTX tokens.
Liquidity Strategy Adjustment: From Pledges to Burns
HTX DAO has relied on liquidity pledges to support token circulation and price stability since its inception. Under such a mechanism, HTX DAO allocated a portion of leading exchange HTX’s quarterly revenue to liquidity pledges, which were executed via platforms like Sun.io.
As $HTX’s liquidity has reached its intended levels amid platform growth, the marginal benefits of the liquidity pledges have diminished. According to HTX DAO, the ecosystem liquidity pledge mechanism has been retired in alignment with feedback from both committee members and community users. Instead, the $HTX portion for pledges will be directly burnt in the future. This move not only reduces the $HTX circulating supply to enhance scarcity, but also aims to support the steady increase of $HTX prices in the long run.
Get Up to Speed on Q3 $HTX Burn Worth $21.25+ Million
In Q3 2024, HTX DAO executed a $HTX burn totaling 15,811,683,954,403 $HTX, valued at over $21.25 million. This burn was executed on-chain in two transactions, and the specifics are as follows:
In the first phase, 9,801,342,915,734.8688 $HTX tokens, originally allocated for liquidity pledges, were burnt. Transaction hash: [085b4fe14fc1686f1b24c26a69de4a99b72c52d9cc531ec083400a801df91191](https://tronscan.org/#/transaction/085b4fe14fc1686f1b24c26a69de4a99b72c52d9cc531ec083400a801df91191).
In the second phase, 6,010,341,038,668.8688 $HTX tokens, sourced from the “Trade to Earn” event, were burnt. Transaction hash: [dbf31d030d7664888a5955484aa6e6d78ca2e0f7023245d31c568cd0e33df286](https://tronscan.org/#/transaction/dbf31d030d7664888a5955484aa6e6d78ca2e0f7023245d31c568cd0e33df286).
For more details on the burn, please read HTX DAO’s official announcement: https://htxdao-1.gitbook.io/announcement-en
Liquidity Goals Met and Driving $HTX Growth
Although HTX DAO’s $HTX burn volume in Q3 was lower than Q2, attributable to the inclusion of “Trade to Earn” income in Q2’s revenue, the transition to direct burns is anticipated to increase the overall burn rate in the future.
HTX DAO introduces the new model where 50% of HTX’s quarterly revenue is allocated for token burning. HTX’s revenue hit $42.5 million in Q3 2024, a sharp 72% increase compared to Q3 2023 at $24.75 million. By established practice, $21.25 million in $HTX was supposed to be used for liquidity pledges in Q3 this year. However, the proportion was burnt by HTX DAO as its liquidity goals had already been achieved.
This adjustment aligns with market needs and reflects HTX DAO’s responsiveness to user feedback. Through the transition, $HTX in circulation will be reduced, optimizing the balance between supply and demand, while maintaining sufficient liquidity.
Looking ahead, HTX DAO will continue burning 50% of HTX’s quarterly revenue in $HTX. The next scheduled burn is slated for January 15, 2025. The size of future burns will depend on changes in quarterly revenue. This sustained burn strategy is expected to provide stability and growth potential for $HTX tokens. HTX DAO is confident this approach will bring more long-term benefits to its users and the wider community.
About HTX DAO
As a multi-chain deployed decentralized autonomous organization (DAO), HTX DAO demonstrates an innovative governance approach. Unlike traditional corporate structures, it adopts a decentralized governance structure composed of a diversified group, jointly committed to the success of this organization. This unique ecosystem advocates openness and encourages all DAO participants to propose ideas that can promote the development of HTX DAO.
Website: www.htxdao.com
ContactMONAmedia@htxdao.com
This article was originally published on Chainwire
