JustLend DAO Burns 525M JST in Second Buyback, Cutting Total Supply Nearly 11%
JustLend DAO, TRON’s decentralized lending protocol, completed a second JST buyback-and-burn, permanently removing 525 million JST (≈$21 million) — about 5.3% of total supply. Combined with a prior burn, the cumulative reduction now totals ~1.08 billion JST, or roughly 10.96% of supply, achieved in under three months. The second buyback used SBM USDT balances generated after the first burn, indicating a partly self-sustaining funding mechanism tied to protocol activity. Key protocol metrics cited: JustLend TVL exceeded $7.08 billion, sTRX staking tops 9.3 billion TRX, and the GasFree Smart Wallet processed $46 billion in volume; USDD multi‑chain TVL surpassed $1 billion, giving extra capacity for buybacks. Market response included a JST market-cap move above $400 million, 24h volume rising ~22% to $31.49 million, and month-to-date price gains ~10.8%. JustLend DAO plans ongoing quarterly buyback-and-burn cycles to progressively reduce JST supply and increase governance weight per token as ecosystem activity grows. Traders should note increased token scarcity that can provide short-term supply-driven price support; monitor liquidity, order-book depth and realized volume for sustainability; and watch for future treasury actions or product updates that could extend demand.
Bullish
The announced buyback-and-burns reduce JST circulating supply materially (≈11% cumulative), which is a direct scarcity driver and typically supports price, especially when combined with visible buyback funding and rising on-chain activity. Short-term impact is likely bullish due to the supply shock and observed uptick in market cap, volume and price. However, the strength and persistence of price gains depend on liquidity and whether buybacks continue at similar scale; if buybacks are one-off or liquidity is thin, initial gains could fade. Over the medium to long term, a recurring quarterly burn program tied to protocol revenue and ecosystem growth can sustainably reduce supply and increase per-token governance weight — a fundamental positive — provided demand (TVL, staking, wallet usage, USDD activity) keeps pace. Traders should weigh the immediate supply squeeze against order-book depth, exchange listings, and whether on-chain metrics translate into steady demand before increasing position size.