Recently, a leading stablecoin protocol completed a major token upgrade. The LIP-021 proposal officially took effect, directly rewriting the tokenomics model. The core action can be summarized in three words—significant deflation.

Specifically, the protocol decided to permanently burn 200 million tokens (valued at over $56 million at current prices), reducing the maximum supply from 1 billion to 800 million. This is not just empty promises but real token destruction. The circulating supply pressure is immediately released, and as the protocol’s TVL and revenue continue to grow, the supply and demand relationship will become increasingly tight, naturally driving up the token’s value under this logic.

More importantly, there is an adjustment in revenue distribution. The previous fixed buyback and freeze mechanism has been replaced by a flexible distribution plan—part of the revenue is directly rewarded to veLISTA holders, part is invested into ecosystem development, and the remaining 60% of the revenue distribution remains unchanged. As a result, the dividend share for veLISTA holders has been significantly increased, currently averaging an annualized return of 8%-12%. Coupled with profits from stablecoin arbitrage, the overall annualized return easily exceeds 25%.

Token locking has also been solidly implemented. Tokens for the team and investors are locked for 1 to 5 years, eliminating short-term dumping risks; community incentives are planned to be distributed continuously over 20 years. This design aims to prevent token inflation and ensure long-term ecosystem vitality.

Holding veLISTA also grants some additional rights—such as participating in governance votes to decide on lending interest rates, new collateral types, and protocol fee distribution—core parameters. In simple terms, it’s about having real control over the ecosystem’s development direction. With this combination of measures—covering deflation, returns, risk control, and governance—the entire logical chain is very coherent.