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A core governance proposal from a leading DEX has recently been approved. This resolution involves two key actions: 100 million of the protocol's governance tokens will be burned, and the fee switch function will be officially activated.
This is no small matter. Token burning directly impacts the circulating supply, which can support long-term value from an economic perspective. The fee switch changes the protocol's revenue distribution model, meaning the entire ecosystem's profit-sharing structure will be adjusted. For holders, liquidity providers, and the entire DeFi ecosystem, this will trigger a chain reaction.
In simple terms, this is the protocol's self-optimization and improvement. By burning tokens and adjusting the fee mechanism, it can enhance the token economy and strengthen the protocol's sustainability. The market typically reacts positively to such signals.
Of course, the actual impact will depend on subsequent market performance and user feedback. But from a governance perspective, this move is in the right direction.