When the foundation begins to 'burn its own money', you should be careful — what they are burning is not cost but your last escape door.
Today, while HashKey is sluggishly raising 250 million and ETFs are smartly flowing out 284 million, in another corner of the crypto world, a delicate and classical 'good show' is unfolding.
The Hyper Foundation solemnly announces: After community governance voting, the HYPE tokens in the aid fund address have been officially recognized for destruction. The voting result is 'democratic' and 'clear': 85% support, 7% oppose, and 8% abstain.
The press release is concise, transparent, and full of decentralized ritual. A touching picture of the community coming together, actively tightening supply, and enduring pain for the long-term development of token value is about to emerge.
Now, let us momentarily hold back the tears that are about to flow, moved by the 'community spirit'. Then, take up the cold scalpel that has dissected leveraged whales and the frenzy of mergers and acquisitions to cut through the gorgeous costume of this performance.
You will find that what is hidden inside is not sacrifice and dedication at all. Instead, it is a modern financial sorcery manual filled with 'deflationary scams' and 'tyranny of staking rights'.
1. The magic of destruction: Using an eraser to wipe away a corner of your IOU.
First, let us understand what the essence of this 'foundation destroying tokens' is.
A project party or foundation usually holds a huge proportion of tokens obtained at almost zero cost in the early stages. These tokens hang over the market like the sword of Damocles, ready to be smashed into the market, becoming the source of selling pressure.
Now, they tell you: Look how noble we are. We are going to publicly melt a part of this sword. The supply has decreased, scarcity has increased, and this is good news for all token holders, isn't it?
Utterly absurd.
It's like a factory manager of a printing house taking a pile of infinitely costless white paper (tokens) from their warehouse, announcing that they will burn it, and then asking everyone in the market who exchanged real money for paper money (tokens bought by retail investors) to cheer for 'the paper money is worth more now'.
What they destroy is not value but potential selling pressure. What they burn is not assets but debt certificates that should not exist infinitely.
More critically, they completed a perfect expectation management through the action of 'destruction'. They made you focus on the mathematical formula of 'supply reduction' while forgetting to ask: 'What gave you the right to hold so many tokens at almost zero cost?' 'Besides this part, how many 'swords' do you still have hanging over our heads that haven't been destroyed?'
Destruction has become a moral smokescreen to cover the original sin.
2. 85% 'democracy': A referendum held by the holders on 'whether to sheath the sword'.
Now, let's look at this vote, hailed as a 'model of decentralized governance': 85% of the staking weight supports destruction.
This number sounds overwhelmingly consensual. But please ask the simplest question: Who holds this 85% of staking weight?
In a typical project, the foundation, team, and early whale investors often hold the vast majority of tokens. The so-called 'voting by staking weight' is essentially a game of 'the holder votes on whether to temporarily sheathe the sword'.
The mentality of the big holders (the holders): The tokens they hold have a very low cost. By destroying a portion of their inventory, they create scarcity expectations, pushing up market prices, benefiting themselves without harm. The remaining tokens they have will increase in value accordingly. It's like landlords agreeing to burn a small portion of their remaining grain, causing the market price of grain to soar, thus making the remaining grain in their granaries worth more. They will certainly raise their hands in approval.
The plight of retail investors: you bought tokens in the secondary market with real money, and your staking weight is negligible. Your 7% opposition or 8% abstention is meaningless in this set of 'equity supremacy' game rules. You are forced to be 'represented' and cheer for a financial operation that essentially serves the interests of the big holders.
This 85% is not democracy at all.
This is a naked capital aristocracy disguised by codes and rules. It makes plunder civilized and harvesting full of ritual.
3. Ultimate scenario: When 'deflation' becomes the only religion, liquidity is the sacrifice.
This performance of the Hyper Foundation must be viewed in the entire grand and distorted narrative context we see today:
What are exchanges (like HTX) doing? They drain the market's short-term liquidity with high interest, turning your active funds into their locked assets.
What are leveraged whales (like Trend Research) doing? They kidnap the market's mid-term liquidity with lending, creating panic of 'too big to fail' to prevent capital outflow.
What are industry giants (acquirers) doing? They eliminate competitors through mergers and acquisitions, monopolize channels, and control the distribution of structural liquidity.
And now, what are the Hyper Foundations doing? They are trying to create absolute scarcity from the very bottom of asset attributes, completing the ultimate narrative control of liquidity.
Their logical chain is incredibly clear:
Physically locking up your money (high interest from exchanges) → Emotionally intimidating your money (leverage risk) → Structurally controlling your money (industry mergers) → Finally, narratively convincing you that money (tokens) is becoming increasingly scarce, and you shouldn't sell it; you should hold on and even buy more.
"Destruction" is the last link in this narrative chain and also the most seductive one. It wears the holy cloak of 'good news', 'deflation', and 'community consensus', making you willingly give up 'liquidity', the supreme right in financial markets.
They are collectively weaving a gigantic trap: a market where liquidity is constantly drained, intimidated, monopolized, and hypnotized by the 'deflation narrative'. In this market, the digital assets you hold may be rising, but the channels to exchange them for real purchasing power and safely exit are being welded shut one by one.
4. Prophecy: When all tokens learn to 'self-destruct', it will be the final act of this liquidity funeral.
So, do not cheer for the 85% voting rate and the news of 'official destruction'.
This is not a victory for the community.
This is a premeditated murder of liquidity, and the vast majority of retail investors are unknowingly acting as witnesses for the murderer.
The Hyper Foundation can vote to destroy the tokens of the 'aid fund' today; tomorrow, they can use the same logic to vote to never unlock team tokens and vote to impose a higher 'destruction tax' on each transaction.
When 'deflation' becomes the only credible narrative for all projects, and 'destruction' becomes the standard action for all foundations to please the market, the entire crypto market will turn into a terrifying liquidity black hole.
On the surface, asset prices soar due to scarcity.
In fact, everyone is trapped in a financial prison built of increasingly scarce tokens, with no way out. You have more and more prison tokens but can no longer exchange them for freedom.
At that time, we will suddenly realize:
Today's 'destruction' with 85% high votes is not a foundational gift of value at all.
That was the first tolling of the death knell for the ultimate liquidity exhaustion of the crypto market.$BTC
