JST Token: The Star Asset of the TRON Ecosystem

On April 27, 2025, Tron founder Justin Sun released a shocking statement on platform X, claiming that the JST token has achieved a fundamental turnaround and is expected to become the "next hundredfold token." Following this announcement, the price of the JST token surged by 34% within 24 hours, reaching $0.04310, with trading volume skyrocketing and market enthusiasm soaring. Justin Sun pointed out that the JST token, as the core governance asset of the Tron ecosystem, is demonstrating immense growth potential, supported by the strong performance of JustLend and USDD.

What is the JST token?

The JST token (JUST) is the native governance token of the Just platform on the TRON blockchain, aimed at supporting decentralized finance (DeFi) and stablecoin ecosystems. JST holders can participate in the governance decisions of the Just platform, such as adjusting the interest rates of JustLend or the collateral parameters of USDD. Since its launch in 2020, the JST token has grown to be a pillar of the TRON DeFi ecosystem, with its value closely tied to the success of JustLend and USDD.

Sun Yuchen compares the JST token to a combination of AAVE and MakerDAO, emphasizing its dual role in lending and stablecoin governance. He predicts that the annual revenue of the JST ecosystem will exceed $100 million by 2026 and promises to use all profits to buy back and destroy JST tokens to reduce circulating supply and increase long-term value. This deflationary mechanism is similar to Binance's BNB strategy, sparking widespread discussion in the market about the investment potential of JST tokens.

The Growth Engine of JST Token

( JustLend: The Leader of DeFi on TRON JustLend is a decentralized lending platform in the TRON ecosystem that allows users to provide assets to a liquidity pool or borrow against collateral. With the TRON blockchain's high throughput of over 2000 transactions per second (TPS) and transaction fees as low as a fraction of a cent, JustLend offers annual percentage yields (APY) of up to 30%, attracting significant liquidity. By 2022, its total value locked (TVL) reached $1.9 billion, and Sun Yuchen claimed that the platform's annual net profit reached tens of millions of dollars.

The JST token plays a governance role in JustLend, allowing holders to vote on key parameters such as interest rates and collateral ratios. As JustLend's user base and locked-up amount continue to grow, the demand and value of the JST token are expected to further increase. However, high yield rates depend on subsidies from the Tron DAO, and long-term sustainability requires more data verification.

) USDD: The explosive growth of algorithmic stablecoins USDD is an algorithmic stablecoin launched by TRON in 2022, maintaining a 1 dollar peg through an arbitrage mechanism and TRON DAO reserves (including assets like TRX, BTC, etc.). The USDD 2.0 launched in 2025 attracted a large number of users with a 20% APY, becoming the core asset of the TRON ecosystem. Justin Sun stated that the "explosive growth" of USDD further solidifies the governance value of the JST token. However, USDD's algorithmic mechanism is similar to Terra's UST, which crashed in 2022 resulting in a $40 billion loss. USDD was also depegged to $0.97 in December 2022, and in 2023 there were reports questioning the transparency of its stUSDT reserves, pointing out that funds were flowing to platforms controlled by Justin Sun. These events remind investors that the outlook for the JST token is tied to the stability of USDD.

Buyback and Burn Mechanism: Deflationary Potential of JST Tokens

Sun Yuchen promised to use all profits from JustLend and USDD to repurchase and destroy JST tokens to reduce circulating supply, which could theoretically increase the token price. This mechanism has successful precedents in the crypto market, such as Binance significantly enhancing the value of BNB through token burns. Users on platform X have reacted positively to this plan, with some believing that the deflationary effect of JST tokens will attract long-term investors.

However, the execution of the buyback and burn depends on the actual profitability of the ecosystem. JustLend and USDD's high yields are partly derived from TRON DAO subsidies, which may be limited in the event of a deterioration in market conditions or a reduction in subsidies. In addition, Justin Sun did not disclose detailed financial data, and investors need to pay close attention to the TRON DAO's reserve report and buyback execution to assess the deflationary potential of the JST token.

Tron Ecosystem: The Solid Backing of JST Token

The value of the JST token is supported by the TRON blockchain. TRON was founded by Justin Sun in 2017 and is known for its delegated proof-of-stake (DPoS) mechanism, offering high performance and low costs. By 2025, TRON's daily active users are expected to exceed 10 million, and the number of DApps ranks among the top in the industry. Its DeFi ecosystem's total locked value exceeded $8.1 billion in 2023, second only to Ethereum.

The diversified ecosystem of Tron provides a wide range of application scenarios for the JST token:

• DeFi Ecosystem: JustLend, SunSwap, and JustStable form a complete financial system that supports lending, trading, and stablecoin services.
• Content and Entertainment: By acquiring BitTorrent, Tron launched BTFS and BTT tokens, supporting decentralized storage and the NFT market.
• Global Collaboration: Partnering with giants like Samsung and Opera to integrate TRX and the Tron ecosystem into mainstream applications, especially in the Asian and Latin American markets.

The technical advantages and global layout of TRON provide a solid foundation for the growth of the JST token, but centralized governance (super representatives are often associated with Justin Sun) and regulatory pressure may affect ecological trust.

Conclusion

The JST token, as the core asset of the TRON DeFi ecosystem, demonstrates significant investment potential due to the strong performance of JustLend and USDD, as well as the buyback and burn mechanism promised by Justin Sun. TRON's high-performance blockchain and diverse applications provide solid support for the JST token, particularly in the DeFi and content sectors. However, the risks of algorithmic stablecoins, the sustainability of high yields, transparency issues, and regulatory pressures remind investors to remain cautious.

Author: Rooick Z., Gate.io researcher *This article only represents the author's opinion and does not constitute any trading advice. Investment involves risks, and decisions should be made with caution. *This content is original and copyrighted by Gate.io. If reprinted, please indicate the author and source, otherwise legal responsibility will be pursued.