According to data released by HTX DAO, this destruction was carried out in two transactions, totaling approximately 15,811,683,954,403 HTX tokens, with a total value exceeding $21.25 million.
On October 15, HTX DAO announced that it has completed the destruction of HTX tokens for the third quarter of 2024. In this quarter, HTX DAO destroyed a total of approximately 15,811,683,954,403 HTX tokens, with a total value exceeding $21.25 million. This marks a significant adjustment in the platform's liquidity strategy. Starting from the third quarter, HTX DAO decided to cancel the original liquidity donation mechanism and switch to a more direct and effective destruction model to further enhance the long-term value of the tokens and the balance of supply and demand.
Liquidity Strategy Adjustment: From Donation to Destruction
Since its launch, HTX DAO has adhered to maintaining the liquidity and market stability of the platform's tokens through on-chain liquidity donations. In previous operations, HTX DAO would allocate a certain percentage of its quarterly revenue from Huobi HTX for liquidity donations and participate in donation operations through platforms like sun.io.
As the platform has matured, the market liquidity of HTX tokens has reached the expected target, and the marginal benefits of continuing liquidity donations have gradually decreased. Therefore, based on feedback from committee members and community users, HTX DAO decided to cancel liquidity donations and directly destroy the tokens that were originally planned for donation. This change not only helps to reduce the total circulation of tokens and enhance the scarcity of HTX tokens but also contributes to the steady increase in the price of HTX tokens in the long term.
Third Quarter Destruction Details: HTX Tokens Worth Over $21.25 Million Destroyed
According to data released by HTX DAO, this destruction was carried out in two transactions, totaling approximately 15,811,683,954,403 HTX tokens, with a total value exceeding $21.25 million.
This destruction operation has been completed on-chain, with the specific destruction information as follows:
The first destruction involved a quantity of HTX tokens originally intended for liquidity donation, amounting to 9,801,342,915,734.8688 $HTX.
The transaction hash is: [085b4fe14fc1686f1b24c26a69de4a99b72c52d9cc531ec083400a801df91191]
(https://tronscan.org/#/transaction/085b4fe14fc1686f1b24c26a69de4a99b72c52d9cc531ec083400a801df91191).
The second destruction came from the transaction mining mechanism, with a quantity of HTX tokens destroyed amounting to 6,010,341,038,668.8688 $HTX.
The transaction hash is: [dbf31d030d7664888a5955484aa6e6d78ca2e0f7023245d31c568cd0e33df286]
(https://tronscan.org/#/transaction/dbf31d030d7664888a5955484aa6e6d78ca2e0f7023245d31c568cd0e33df286).
For more details, please refer to the announcement: https://htxdao-1.gitbook.io/announcement-cn
Liquidity Demand Met, Strategy Adjustment to Promote Market Development
Comparing the destruction situation between the second and third quarters of 2024, although the total amount destroyed in this quarter is slightly lower than in the previous quarter, the main reason is that the transaction mining income from the second quarter was also included in the revenue statistics for Huobi HTX, resulting in a higher destruction quantity in the second quarter. In fact, after switching from liquidity donations to direct destruction, the destruction speed will significantly increase.
HTX DAO conducts destruction based on the platform's quarterly revenue, at a rate of 50%. The external revenue for the third quarter of 2023 was $24.75 million, and the revenue for this year's third quarter was approximately $42.5 million, a year-on-year increase of 72%. Therefore, HTX DAO conducted a liquidity donation assessment this quarter based on $21.25 million, but since the on-chain liquidity for donations has met the requirements, it was ultimately decided to directly destroy this portion of HTX tokens.
This move by HTX DAO not only aligns with market development needs but also responds to the feedback from a wide range of users. By canceling donations and switching to a destruction model, HTX DAO has ensured sufficient liquidity while reducing the supply of tokens in the market, further optimizing the balance of supply and demand for the tokens.
In the future, HTX DAO will continue to implement the mechanism of destroying 50% of Huobi HTX's revenue each quarter. According to the plan, the next destruction of HTX tokens is expected to take place on January 15, 2025. The scale of future destructions will depend on changes in the platform's quarterly revenue, but it is foreseeable that the continued execution of the destruction mechanism will bring more stable market performance for HTX tokens. It is believed that HTX DAO can bring more long-term benefits to platform users and the community.
About HTX DAO
As a multi-chain deployed decentralized autonomous organization (DAO), HTX DAO showcases an innovative governance model. Unlike traditional corporate structures, it adopts a decentralized governance structure composed of a diverse group, working together to promote the success of the organization. Its unique ecosystem advocates open values and encourages all ecosystem participants to propose suggestions that can facilitate the development of HTX DAO.
Contact Information
Official website: www.htxdao.com
Email: media@htxdao.com
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