# Token Burn Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Token Burn", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Decentralized Futures Exchange Lighter Announces Launch of Its Own Token Burn Program!

Decentralized perpetual futures exchange Lighter has announced major steps to strengthen its tokenomics. In a statement on X, founder Vladimir Novakovskiy revealed that over 16 million LIT tokens have been repurchased to date, and a regular quarterly token burn program has been officially launched. Novakovskiy stated these initiatives are part of a long-term strategy to reduce the circulating supply of LIT tokens and support ecosystem sustainability. He also emphasized that Lighter's token distribution structure has remained unchanged since its Token Generation Event (TGE), noting that most existing investors chose to hold their positions, which he cited as a key indicator of trust in the project. Furthermore, Novakovskiy commented on anticipated U.S. regulatory changes, specifically mentioning the CLARITY Act currently before Congress. He believes that once such rules for digital assets are finalized by the SEC, blockchain-based fundraising and stock tokenization could rapidly gain traction. This transformation, he stated, would create a stronger bridge between traditional finance and crypto markets, with significant growth expected for blockchain-based capital markets in the coming years.

cryptonews.ru10h ago

Decentralized Futures Exchange Lighter Announces Launch of Its Own Token Burn Program!

cryptonews.ru10h ago

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

Pump.fun, a popular meme coin launchpad, has introduced a new standard mechanism called BOOST. It aims to address a significant capital efficiency issue: when a newly launched token graduates from its initial bonding curve to a liquidity pool (LP), roughly 20% of its liquidity becomes permanently locked as "dead liquidity," estimated to waste over $100 million annually. Instead of locking these funds permanently, BOOST repurposes them. Upon a token's migration, approximately 20% of the settlement funds (e.g., 17.6 SOL or ~$2516 USDC) are used to buy back the token on the open market over a 5-minute period via a Time-Weighted Average Price (TWAP) mechanism. All purchased tokens are immediately burned. This creates a brief, systematic buy pressure immediately after migration, potentially generating a short-term price surge ("pump") while permanently reducing the token's circulating supply. The goal is to enhance the immediate post-launch trading experience, potentially increasing trader retention and sustainable protocol revenue, which funds ongoing token buybacks. However, concerns exist that this artificial 5-minute boost could lower the barrier for launching low-quality tokens and lead to steeper price crashes once the buy pressure stops, if followed by large sell-offs. The feature automatically applies to tokens migrating after July 21, 2024, but not to previously migrated tokens or those launched via the Mayhem AI Agent lab.

marsbit07/22 05:48

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

marsbit07/22 05:48

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

Foresight News, July 21 – Pump.fun has launched its new "BOOST" mode as the standard launch mechanism for new tokens. The core of BOOST is to address the issue of "dead liquidity." Historically, when a token migrates from its bonding curve to a liquidity pool, roughly 20% of its liquidity becomes permanently locked and unusable, a problem the platform estimates costs over $100 million annually. The new mechanism redirects this 20% of funds, which would have been locked, to instead be used for a 5-minute Time-Weighted Average Price (TWAP) buyback of the token immediately after migration. The purchased tokens are then permanently burned. For example, this means reserving 17.6 SOL for SOL pairs or about $2516 for USDC pairs at migration. This creates a short-term buying pressure and reduces the token's supply. The goal is to improve the immediate post-launch performance of memecoins, potentially increasing trader retention and transaction volume on the platform. However, critics warn this could lower the bar for token launches, encouraging low-quality projects, and that the brief 5-minute buy pressure might lead to sharper price crashes once it ends if followed by large sell-offs.

Foresight News07/22 03:25

Unlocking $100 Million in Liquidity? Pump.fun's New Policy Tests the 5-Minute Pump Technique

Foresight News07/22 03:25

Will new Uniswap protocol fee proposals drive ‘substantial UNI burn’?

Uniswap has submitted three governance proposals to activate protocol fees across multiple versions (V2, V3, V4) and various blockchains, including Robinhood, Ethereum, Base, Arbitrum, BNB Chain, Polygon, and Optimism. CEO Hayden Adams stated these fees would be directed into the existing UNI token burn mechanism, expecting a "substantial" impact on token reduction based on current trading volumes, particularly from the newly launched Robinhood chain. The move has drawn mixed reactions, as it would reduce fees for liquidity providers (LPs), who have earned over $5 billion cumulatively versus only $25 million in protocol revenue. Some LPs, like Gamma Strategies, oppose the V4 proposal, arguing it could make Uniswap less competitive against rival decentralized exchanges. If approved, the increased protocol revenue could significantly boost the UNI burn rate, which has already tripled in the past week. Meanwhile, UNI's price rallied 41% in July, partly driven by Robinhood traction, but faces potential consolidation or a pullback unless new momentum from fee proposals and Robinhood activity fuels further gains.

ambcrypto07/18 08:02

Will new Uniswap protocol fee proposals drive ‘substantial UNI burn’?

ambcrypto07/18 08:02

Jito Revives with New Exchange JTX Buyback: Self-Salvation or Lifeline?

Jito, a Solana-based MEV and liquid staking infrastructure protocol, has announced new governance proposal JIP-38 and the launch of a new self-custody trading platform, JTX. The proposal establishes a rigid value-capture mechanism, mandating that 100% of the DAO's share of revenue from JTX—80% of its platform fees—will be used for programmatic, on-chain verifiable open market buybacks and permanent burns of the JTO token. This commitment is set to last at least from JTX's launch until Q4 2027. The move comes as Jito faces significant challenges in its core liquid staking market, with protocol-staked SOL declining from 18 million to under 10 million. Intense competition from protocols like Sanctum and Jupiter, coupled with continuous monthly token unlocks (1.15% of max supply), has pressured JTO's price, which fell over 96% from its all-time high to a low of $0.21 earlier this year, before recovering to around $0.63. JIP-38 formalizes Jito Network as a "token-centric" network, where all major revenue streams flow to the DAO for governance by JTO holders. While the JTX buyback is a firm commitment using new revenue, decisions on other income streams and the post-2027 strategy will be determined by future governance votes. The proposal is seen as a strategic pivot to create a new revenue source and directly align token value with ecosystem growth, though its success depends heavily on JTX's ability to compete effectively in the crowded Solana trading landscape.

Foresight News07/14 06:28

Jito Revives with New Exchange JTX Buyback: Self-Salvation or Lifeline?

Foresight News07/14 06:28

Is LIT’s burn worth $42 million enough to spur the altcoin’s next big rally?

Lighter (LIT) has experienced significant volatility, rallying 18% over the past week but facing potential overbought conditions. After a warning of a correction toward $2, the price dipped to $2.3 before recovering to $2.60. A major catalyst was the recent burn of over 15.6 million LIT tokens (worth ~$42 million), representing 6.3% of the circulating supply, which may have spurred short-term bullish momentum toward $3. Technical analysis on the 1-day chart shows a bearish divergence with the RSI, signaling a potential pullback despite strong demand. The key Fibonacci retracement level to watch is $2.30. On the 4-hour chart, LIT is forming a range between $2.31 and $2.68. The suggested strategy is to wait for a breakout above $2.70 to target $3.06-$3.21, or a breakdown below $2.31 for a likely deeper retracement below $2. In summary, while bullish momentum persists, traders should monitor the range boundaries for the next directional move.

ambcrypto07/12 03:02

Is LIT’s burn worth $42 million enough to spur the altcoin’s next big rally?

ambcrypto07/12 03:02

LAB team burns $11M – Can price survive 46M token unlock hitting next?

The LAB token, after rebounding from under $1 to over $1 following a team burn of 10 million tokens worth $11.3 million, faces a critical test. Despite the short-term price recovery, trading volume declined, suggesting weak organic demand. A major concern is the imminent unlock of 46.3 million tokens from airdrop and investor allocations, valued at approximately $48.4 million. This potential supply influx could overwhelm the recent deflationary burn. Technical indicators like the MACD remain negative, highlighting bearish momentum. The price's ability to hold above $1 depends on whether sustained buying demand can absorb the upcoming token unlocks.

ambcrypto07/10 22:02

LAB team burns $11M – Can price survive 46M token unlock hitting next?

ambcrypto07/10 22:02

Shiba Inu drops 5% despite biggest token burn in 6 months – Here’s why!

Despite the Shiba Inu community executing its largest single-day token burn in six months, removing over 110 million SHIB from circulation, the token's price dropped approximately 5%. The article explains that while token burns reduce supply to create scarcity, the recent burn activity represents only a tiny fraction of SHIB's massive circulating supply of roughly 585.6 trillion tokens. Therefore, it fails to materially tighten supply. More significantly, weak overall demand in the memecoin sector is the primary driver. Capital has been flowing out of memecoins, with their share of the total altcoin market cap declining sharply. Consequently, SHIB's price remains more sensitive to broader memecoin market weakness and capital outflows than to its own deflationary token burn efforts.

ambcrypto07/09 05:02

Shiba Inu drops 5% despite biggest token burn in 6 months – Here’s why!

ambcrypto07/09 05:02

Polygon burns hit 107M POL this year – So why is its price tanking?

Polygon (POL) has burned over 107 million tokens in 2026, becoming net deflationary this year. Its network activity remains strong, achieving the highest stablecoin transaction volume among payment networks in May at 198 million. Major staking activity and whale confidence also support its fundamentals. However, POL's price has declined, recently trading around $0.06948. This price drop is attributed to a prolonged technical downtrend since late 2024, with the asset now in a consolidation pattern and facing significant selling pressure, as indicated by exchange offloads and negative market indicators.

ambcrypto07/01 11:02

Polygon burns hit 107M POL this year – So why is its price tanking?

ambcrypto07/01 11:02

Microsoft Halts Vibe Coding: "Burning Tokens" Is Now More Expensive Than Employees

Microsoft has halted the widespread internal use of Claude Code, withdrawing licenses from most employees by the end of its fiscal year, June 30, 2026. This reversal comes just six months after actively promoting the AI coding tool to boost productivity via "vibe coding"—where developers describe intent in natural language and let the LLM generate code. The core issue isn't the tool's effectiveness; internal reports suggest employees preferred Claude Code over Microsoft's own Copilot CLI. The problem is financial: the "copilot mode" adds a variable, consumption-based token cost on top of existing employee salaries without a proportional revenue increase. As usage grew, the token bills became unsustainable, leading to what sources describe as a cost-structure failure. Similar overruns have been reported at other firms like Uber. The article contrasts this with the approach of AI-native startups, exemplified by Y Combinator's philosophy. Here, high token consumption is strategic—it replaces, rather than supplements, human labor. Startups operate with tiny teams where AI agents handle work previously done by many, making the high token bill financially viable as it offsets much larger personnel costs. The conclusion is that "vibe coding" isn't dead, but its economics fail within traditional corporate structures that treat AI as a productivity add-on for existing staff. Success requires a foundational shift to an AI-native organization, where processes are built to be "legible to AI," and the company's core knowledge and assets reside in documented, AI-accessible systems rather than solely in employees' minds. The future divide will be between companies that merely add AI tools and those that redesign their organizations around them.

marsbit05/26 08:51

Microsoft Halts Vibe Coding: "Burning Tokens" Is Now More Expensive Than Employees

marsbit05/26 08:51

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