JustLend DAO Completes Second JST Buyback and Burn, Removing Nearly 11% of Total Supply

JustLend DAO, a leading decentralized lending platform on the TRON blockchain, has completed a second JST token buyback and burn, removing 525 million tokens from circulation. This action reduces the total supply by approximately 5.3%. The burn is part of the platform's ongoing strategy to maintain a deflationary token supply.

The second burn adds to a cumulative reduction of roughly 1.08 billion JST tokens since the first burn, representing 10.96% of the total supply. This action was supported by continued growth in the JustLend DAO ecosystem, including a total value locked (TVL) of over $7.08 billion as of January 16, 2026.

The JST token buybacks are funded by the platform's SBM USDT reserves. These reserves were generated during the first burn and are being used to support a self-sustaining model for ongoing supply reduction.

Why Did This Happen?

The decision to conduct another JST buyback and burn is part of JustLend DAO's strategy to align token holder value with protocol growth. The reduction in supply increases the scarcity of JST tokens, which can boost their value as demand remains steady or grows.

The move is also linked to the expansion of the USDD multi-chain ecosystem, which includes growth across Ethereum and BNB Chain. This expansion has more than doubled TVL in the USDD ecosystem in under two months, strengthening the link between stablecoin adoption, protocol activity, and JST supply reduction.

How Did Markets React?

Market reactions to the second JST burn were positive. As of January 8, 2026, JST's market capitalization surpassed $400 million for the first time. The 24-hour trading volume rose 21.92% to $31.49 million, while the token's price increased 10.82% over the past month and 3.1% in a single day.

These market dynamics reflect increased investor confidence in the JST token and the broader JustLend DAO ecosystem. The ongoing supply reduction has also increased governance weight for remaining JST holders, giving them greater influence over protocol parameters and future developments.

What Are Analysts Watching Next?

The continuation of quarterly buyback-and-burn cycles provides a clear and measurable path for reducing JST supply over time. As the ecosystem continues to grow, the supply of JST is expected to decline in a predictable manner, increasing scarcity and aligning with investor expectations for token value appreciation.

Analysts are closely watching how the JST token performs as the supply reduction continues. Factors such as TVL, protocol revenue, and ongoing product development will be critical in determining the long-term success of this strategy.

Investors are also monitoring how the USDD ecosystem integrates with JustLend DAO, as this could further strengthen the link between stablecoin usage and token supply dynamics. The success of this model will depend on sustained growth and innovation within the TRON-based DeFi space.