A major update has been rolled out to a certain DEX ecosystem. In the community governance voting, token holders approved the "UNIfication" upgrade plan with an almost unanimous support rate. The two most notable measures are the fee conversion mechanism and a large-scale token burn plan.

First, regarding the token burn—official plans call for directly burning 100 million platform tokens, which is worth approximately $600 million at current prices. The burn is conducted through the "fire pit" contract, where holders can actively send tokens into it and then withdraw corresponding other crypto assets from the "token jar." This mechanism not only quickly reduces circulating supply but also provides community members with real value exchange—it's not just a burn out of thin air but allows swapping for actual assets, which in some ways creates an internal price discovery mechanism.

Next, looking at the fee conversion part. The new mechanism will transfer between 1/6 and 1/4 of the fees generated by v2 and v3 trading pools into the token jar, instead of distributing them directly to token holders as before. Additionally, a new protocol fee discount auction mechanism has been designed to compensate liquidity providers—this approach protects LPs' expected earnings while also directing some fees into the token jar, balancing between revenue sharing and ecosystem development.

From a broader perspective, this combination is a redesign of the token economic model. By burning to reduce supply scarcity and establishing a more flexible revenue distribution system through fee conversion, the goal is clear—enhance the intrinsic value of the token.