HTX DAO announces completion of Q3 2024 HTX token burn, optimizing liquidity strategy
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HTX DAO announces completion of Q3 2024 HTX token burn, optimizing liquidity strategy
According to data released by HTX DAO, this burn was conducted in two transactions, collectively destroying approximately 15,811,683,954,403 HTX tokens, with a total value exceeding $21.25 million.
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On October 15, HTX DAO announced the completion of its third-quarter 2024 HTX token burn. During this quarter, HTX DAO burned approximately 15,811,683,954,403 HTX tokens, with a total value exceeding $21.25 million. This marks a significant shift in the platform's liquidity strategy. Starting from Q3, HTX DAO has decided to discontinue its previous liquidity contribution mechanism and adopt a more direct and effective token burn model to further enhance the long-term value and supply-demand balance of the token.
Liquidity Strategy Shift: From Contributions to Burns
Since its launch, HTX DAO has maintained token liquidity and market stability through on-chain liquidity contributions. In prior operations, HTX DAO allocated a portion of Huobi HTX’s quarterly revenue to liquidity contributions, executed via platforms such as sun.io.
As the platform matures, the market liquidity of HTX tokens has reached its intended target, resulting in diminishing marginal returns from continued liquidity contributions. Therefore, based on feedback from committee members and community users, HTX DAO has decided to cease liquidity contributions and instead directly burn the tokens originally designated for contributions. This change will help reduce the total circulating supply, increase the scarcity of HTX tokens, and support steady long-term price appreciation.
Q3 Burn Details: Over $21.25 Million Worth of HTX Tokens Burned
According to data released by HTX DAO, the current burn was conducted in two separate transactions, totaling approximately 15,811,683,954,403 HTX tokens, valued at over $21.25 million.
The burn operations have been completed on-chain, with details as follows:
The first burn involved 9,801,342,915,734.8688 $HTX tokens originally allocated for liquidity contributions.
Transaction hash: [085b4fe14fc1686f1b24c26a69de4a99b72c52d9cc531ec083400a801df91191]
(https://tronscan.org/#/transaction/085b4fe14fc1686f1b24c26a69de4a99b72c52d9cc531ec083400a801df91191).
The second burn came from the transaction mining mechanism, amounting to 6,010,341,038,668.8688 $HTX.
Transaction hash: [dbf31d030d7664888a5955484aa6e6d78ca2e0f7023245d31c568cd0e33df286]
(https://tronscan.org/#/transaction/dbf31d030d7664888a5955484aa6e6d78ca2e0f7023245d31c568cd0e33df286).
For more information, please refer to the official announcement: https://htxdao-1.gitbook.io/announcement-cn
Liquidity Needs Met – Strategic Adjustment to Drive Market Growth
Comparing Q2 and Q3 2024 burns, although the total volume burned this quarter is slightly lower than the previous quarter, this is primarily because Q2 included transaction mining revenue within Huobi HTX’s income calculation, leading to a higher burn volume. In reality, transitioning from liquidity contributions to direct burns will significantly accelerate the burn rate going forward.
HTX DAO conducts burns based on 50% of the platform’s quarterly revenue. The reported external revenue was $24.75 million in Q3 2023 and approximately $42.5 million in Q3 2024—a year-on-year increase of 72%. Accordingly, HTX DAO used $21.25 million as the basis for evaluating liquidity contributions this quarter. However, since on-chain liquidity requirements have already been met, it was ultimately decided to directly burn this portion of HTX tokens.
This move by HTX DAO aligns with market development needs and reflects community feedback. By replacing contributions with burns, HTX DAO reduces token supply in the market while ensuring sufficient liquidity, thereby optimizing the overall supply-demand equilibrium of the token.
Going forward, HTX DAO will continue its policy of burning 50% of Huobi HTX’s quarterly revenue each quarter. The next scheduled HTX token burn is expected to take place on January 15, 2025. Future burn volumes will depend on fluctuations in platform revenue, but the consistent execution of the burn mechanism is expected to bring greater market stability to the HTX token. HTX DAO remains committed to delivering increasing long-term benefits to its users and community.
About HTX DAO
As a multi-chain decentralized autonomous organization (DAO), HTX DAO represents an innovative governance model. Unlike traditional corporate structures, it adopts a decentralized governance framework composed of diverse participants, all working collectively toward the success of the organization. Its unique ecosystem promotes open values and encourages all ecosystem participants to submit proposals that drive the development of HTX DAO.
Contact Information
Website: www.htxdao.com
Email: [email protected]
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