2025-12-31 08:24:25

Recently, I noticed the burn data of a major mainstream DEX. In the past two days, transaction fee burns have reached 24,000 tokens. Combined with the 49,600 tokens accumulated over the past five years, the total tokens burned across the network has exceeded ten million — 10,074,579 tokens.

This mechanism is actually quite interesting. It adopts an arbitrage-style burn design, allowing anyone to participate. The entry barrier is low, with a threshold set at 4,000 tokens. When you calculate that the accumulated transaction fees exceed this value, the burn mechanism can be triggered via a smart contract. You can also choose to aggregate fees from multiple LP pools; currently, the cycle is approximately 6 to 8 hours per execution.

At the moment, only V2 and some V3 LP pools are contributing transaction fees to the protocol. Many pools have not yet activated this feature, and with the upcoming launch of V4, there is still quite a lot of room for burning.

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FlyingLeek

· 10h ago

Tens of millions of burn volume sounds impressive, but how many people are actually participating? The burn mechanism itself is good, just worried it might become a tool for big players to arbitrage. All free before V4上线? It seems like some pools are just not being managed at all. Setting the threshold at 4000, retail investors' participation cost is still a bit high. 10,074,579 burn volume looks satisfying, but could it just be a numbers game? Every 6 to 8 hours, the frequency still feels a bit low. Aggregating multiple pools is convenient, but the operation is a bit complicated.

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SolidityStruggler

· 10h ago

Wow, tens of millions in burns directly take off... How is this mechanism designed so cleverly, with arbitrage-style and low barriers? Is V4 coming? Then the burn amount needs to multiply several times, and there are still so many inactive in the pool. But this threshold of 4000 is really friendly, it feels like everyone can participate. This is a time bomb, slowly pushing out the token value at a steady pace. Wait, executing every 6 to 8 hours? That seems a bit frequent, will the gas fees be very high?

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NFTDreamer

· 10h ago

Yeah, this mechanism is indeed quite interesting, and the participation threshold is pretty low. Is there really such a large burning space? Once V4 goes live, it will be even more so. Tens of millions in burned tokens piling up—it's still quite shocking to see. Can token deflation really outpace inflation if we keep playing like this? Just 4,000 tokens can trigger it, which feels a bit like exploiting a loophole. Executed every 6 to 8 hours, and able to aggregate multiple pools...a bit clever, huh? Suddenly thought, with so many pools not yet activated, who benefits the most?

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MEVSupportGroup

· 10h ago

Wow, a destruction number in the tens of millions sounds pretty impressive, but the threshold of these 4,000 tokens isn't really high... Wait, is there still such a large destruction space after V4 goes live? So the current numbers are just the beginning? This mechanism is more complicated than I thought, with a cycle of 6 to 8 hours, it feels like the arbitrage space is being squeezed tightly... No, multiple LP pools are aggregated to trigger, doesn't that mean someone is already taking advantage of it? The destruction mechanism is good, but the real beneficiaries are probably the big players, those with more tokens can participate easily... A hundred million level sounds intimidating, but what is that in the current price? That's the key... Waiting for V4, is it a bit late to participate now...

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