On October 21 (SGT), JustLend DAO—the flagship DeFi protocol of the TRON ecosystem—reached a major milestone with the successful completion of its first large-scale JST burn. This marks JST’s evolution from a fully circulating token into a continuously deflationary asset.
As announced, JustLend DAO has allocated over 59 million USDT from its accumulated protocol revenue. Of that amount, 30% has already been deployed to buy back and burn 560 million JST. The remaining 70%, over 41 million USDT, will be burned in phases over four quarters.
Unlike short-term subsidy-driven buybacks, JST’s deflation is powered by real, recurring profits from JustLend DAO and USDD, the twin pillars of the TRON ecosystem. By anchoring JST’s value directly to protocol earnings—grounded in existing revenue and continuously replenished by new profits—the model creates a clear, sustainable deflationary cycle that stands in stark contrast to typical one-off buyback schemes.
Buyback funding comes from two sources: first, JustLend DAO’s net income, encompassing both the current reserves and future earnings; second, USDD’s incremental revenue, once its multi-chain operations surpass $10 million in profit.
According to the announcement, JustLend DAO pulled over 59 million USDT from accumulated revenue and adopted a phased approach: 30% for the first tranche and 70% to be burned quarter by quarter. The initial tranche is now complete—roughly 17.72 million USDT (30% of the current reserve) was used to burn about 560 million JST, representing close to 5.66% of total supply. The remaining 70%, or over 41 million USDT, will be burned across four quarters. In the interim, these funds are held as jUSDT in JustLend DAO’s SBM USDT market to generate yield, with those proceeds also earmarked for future buybacks and burns.
Building on incremental earnings, JustLend DAO will channel each quarter’s new net income into the buyback pool, while USDD’s profits—once they reach target levels—will also feed into the cycle. Future buybacks and burns will be executed by JustLend Grants DAO under a transparent framework: during the first four quarters, each new quarter will kick off with the burn of the previous quarter’s incremental net income plus 17.5% of the existing reserve.
The initial 5.66% burn is just the beginning. As reserve funds are gradually released and incremental revenue continues to flow in, the cumulative amount of JST burned is expected to exceed 20%.
With the inaugural buyback-and-burn now underway, JST’s large-scale deflation cycle has officially begun. JST’s deflation now moves in lockstep with the reinforcing cycles of JustLend DAO and USDD, positioning JST for a new upward trajectory.
JST reached full circulation in Q2 2023, with a fixed total supply of 9.9 billion tokens and no future unlock pressure. Every buyback and burn delivers a real reduction of circulating supply, increasing scarcity and strengthening price support for the token. Notably, JST’s token burn stands out for its scale: with a market capitalization of around $300 million, JustLend DAO’s $60 million in accumulated revenue alone represents roughly 20% of JST’s total market value.
The long-term value growth of JST stems not only from its deflatory mechanism but also from the steadfast support of the JUST ecosystem’s full value loop. JustLend DAO and USDD, as its two core pillars, both provide funds for the deflation model and translate supply contraction into lasting value growth.
As the DeFi cornerstone of the TRON ecosystem, JUST has built a robust service infrastructure incorporating SBM, sTRX, and Energy Rental for JustLend DAO, while expanding its DeFi product line-up with stablecoins such as USDD. The JUST ecosystem now boasts up to $12.2 billion in TVL, accounting for 46% of TRON’s total—a testament to the market’s strong confidence in its ability to generate sustainable, large-scale yields.
JustLend DAO has evolved from a single-purpose lending protocol to a feature-rich DeFi platform spanning supply and borrowing, liquidity staking, and Energy rental. Its diversified income structure gives it a competitive edge in both resilience and growth potential. As of October 21, JustLend DAO recorded $7.62 billion in TVL and a user base of 477,000, securing fourth place globally in the lending sector by TVL with notable dominance in the DeFi landscape.
On the profitability front, beyond the existing $59 million in revenue, the platform captured nearly $2 million in fees in Q3 this year, according to DeFiLama. That incremental revenue alone is sufficient to cover the $6 million quarterly buyback, providing a solid funding base for JST’s long-term deflation model.
USDD, meanwhile, functions as the second engine powering the deflation mechanism. Any revenue exceeding the $10 million threshold will be allocated to JST buybacks. Now deployed across major chains including Ethereum and BNB Chain, USDD has a circulating supply of over $450 million and is poised to become a key liquidity source for JST deflation.
This buyback and burn isn’t a flash in a pan but marks the beginning of a long-term deflationary model anchored in real ecosystem earnings. From JustLend DAO’s $60 million in existing revenue to the steady inflow of USDD’s multi-chain profits and the comprehensive support of the JUST ecosystem, JST is establishing a virtuous cycle—where ecosystem-driven deflation enhances token scarcity, boosts value, and in turn fuels further ecosystem growth.
JustLend DAO is TRON’s decentralized financial platform where users can earn yields through supplied assets, borrow digital assets against collateral, participate in TRX staking, and rent Energy. Committed to developing TRON-based DeFi protocols and providing all-in-one financial solutions to its users, there is now more than $7.6B Total Value Locked in the JUST Network.
The JustLend DAO provides a forum for its users to participate in governance and directives, while empowering its users with decentralized authority, trustless transactions, smart-contract automation, and security with transparent accountability.
