DAO is not a slogan, but a value realization mechanism.
On April 15, HTX DAO announced the token burn for the first quarter of 2025. According to the announcement, approximately 113 trillion $HTX tokens were burned this quarter, estimated to be worth about $19.2 million at current prices. Meanwhile, as of now, HTX DAO has cumulatively burned over 609.7 trillion $HTX since its operation, valued at approximately $114 million, demonstrating strong deflationary execution and high transparency. This burn was based on the HTX DAO governance mechanism, which allocates 50% of the revenue from Huobi HTX in the first quarter of 2025 for token burning. The burn funds were primarily executed through the Sun.io channel and publicly recorded on-chain. Users can check the specific burn details through the transaction hash.
It is noteworthy that in the first quarter of 2025, Bitcoin fell from a peak of nearly $110,000 to $70,000, a decline of over 30%. According to Coingecko data, the average daily trading volume of cryptocurrencies across the network dropped from $20.07 billion to $14.6 billion, a decrease of 27%. In this overall declining environment, the quarterly burn volume of HTX DAO only decreased by 15%.
At the same time, the HTX DAO holding voting tool has recently been launched, allowing users to participate in community governance and proposal voting through their $HTX holdings. In the future, HTX DAO will continue to enhance community consensus, support ecological prosperity, and co-build an autonomous financial ecosystem in the Web3 era with users.
Compared to many "paper DAOs" and projects that merely shout about burning in the crypto industry, HTX DAO's burn actions not only have verifiable authenticity on-chain but also reflect its long-term strategic focus on deflationary models and ecological construction. We analyze this burn event from multiple dimensions, attempting to restore a more realistic and rational development picture of HTX DAO.
1. Burning is not a gimmick, but part of the DAO governance mechanism
In the early days of the crypto industry, the common "burning" operation was often a "market value management" behavior carried out by project parties to stimulate prices in the short term without community consent or transparent mechanisms. In contrast, HTX DAO established a "verifiable income - automatic repurchase - on-chain burn" model at the end of 2023, providing a strong institutional foundation for the burn.
HTX DAO's burn mechanism includes:
● Income linkage: A certain percentage of ecological income (such as transaction fees, platform income, etc.) is used to repurchase HTX;
● On-chain transparency: All burn addresses and transaction records are traceable, with real-time data synchronization;
● Clear cycles: Burn announcements and hash information are released quarterly on schedule, subject to community audit;
● Governance constraints: The DAO governance mechanism supervises and adjusts the repurchase and burn ratios and execution frequency.
Therefore, the burn of HTX DAO is not a short-term market behavior but a deflationary "realization" action under institutional design, with long-term compounding effects.
2. Value fluctuations in burning reflect rational market mechanisms
Compared to Q4 2024, the total value of burns in Q1 2025 saw a slight decline (Q4 2024 was $22 million, Q1 2025 was $19.2 million), which raised concerns among some investors. However, from a mechanistic perspective, this decline precisely reflects the rationality and non-manipulative nature of HTX DAO's operation:
● DAO income fluctuations are normal and depend on the overall trading activity in the market;
● Repurchase funds come from real income, not virtual allocations or pre-advanced market value;
● The quantity and pace of burns follow an established model and are not adjusted temporarily due to "market value anxiety."
This indicates that HTX DAO's value growth path does not rely on "artificial beautification," but rather follows a verifiable and sustainable path of "growth + deflation" dual drivers.
3. Reduced circulation, increased scarcity, value logic is being realized
Currently, the deflationary trend of HTX DAO is very evident:
● Cumulative burns: Over 609.7 trillion HTX, with an increasing proportion of the initial total;
● Total circulation reduction: The scarcity of HTX in the hands of long-term holders is continuously increasing;
● Healthy token model: Low inflation and high burn make HTX a "rare net deflationary asset" in the exchange ecosystem.
From Ethereum's (ETH) EIP-1559 model to BNB's quarterly burns, deflationary assets have been repeatedly validated by the market as one of the core logics supporting long-term value. HTX DAO is continuously advancing along this mature logic, and its mechanisms for staking, governance, and nodes within the ecosystem also form positive feedback with the burn system. The deflationary logic of HTX DAO is not only a Tokenomics design but also a value consensus: the less circulation, the stronger the value of a single token; the larger the ecosystem, the more burns, the higher the value.
4. Comparative analysis: Scarcity execution power in DAO governance
Currently, there are many projects in the market that claim to be "DAOs," but few can truly implement governance proposals and realize mechanism benefit distribution. One of the main features of HTX DAO is that its execution power and transparency are genuinely visible on-chain.
Comparing with common issues in other DAOs:
Therefore, from the perspective of mechanism reliability, HTX DAO can be considered one of the top samples in the current DAO ecosystem with the strongest execution efficiency, clearest deflationary logic, and most transparent financial data.
5. DAO is not a slogan, but a value realization mechanism
From the Q1 burn data, HTX DAO continues to follow its path of steady growth: maintaining nearly $20 million in repurchase and burn despite income fluctuations, with on-chain transparency, high community acceptance, and continuous optimization of circulation structure. All these factors converge to form a key judgment: HTX DAO is on a path that truly allows DAOs to "fulfill promises" and realize the long-term value of tokens.
With the market recovery, ecological expansion, and increased user activity, we have reason to believe that the burn data for each quarter in the future will become a highly persuasive "milestone" on HTX DAO's growth path.
This is not only a verification of the mechanism but also a practical answer to the question of "Can DAOs work?"
About HTX DAO
As a multi-chain deployed decentralized autonomous organization (DAO), HTX DAO showcases an innovative governance approach. Unlike traditional corporate structures, it adopts a decentralized governance structure composed of diverse groups, collectively committed to promoting the success of this organization. Its unique ecosystem advocates open values and encourages all ecological 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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