Don't Just Look at the Interest: Unveiling the Logic of 'Hidden Destruction' Towards Deflation
$DUSK Good afternoon, friends. Let's chat about something light yet valuable during this lunch break. If your understanding of the deflation mechanism of
@Dusk is still limited to just Gas fees being burned, then it might be time for an update.
In the recording, CTO Hine mentioned a key term: Protocol Owned Liquidity.
Why is this 'hidden destruction'?
The Dusk plan aims to use real income from EVM and RWA products to buy back tokens and permanently inject them into liquidity pools.
Hine clearly defined in the interview that this is 'effectively a burn'. Because these repurchased coins are permanently locked in the pool to generate yield, although they nominally still exist, they will never return to the market for sell-off. This mechanism not only makes the coins scarce, but also increases the market depth, which is the true path to deflation.
Uncle's Ramblings:
Understanding this layer of logic will prevent you from being frightened by the daily circulation volume. This method of 'supporting deflation with yield' is more strategic than simple violent destruction.
$DUSK #dusk #Tokenomics #Burn