BNB Chain Leading Lending Protocol: Lista is about to burn 20% of the total token supply!

The most appealing aspect of the proposal is undoubtedly the burning of 20% of the total token supply, which is also the most likely to affect the token price.

However, the most important change in the proposal is: switching from permanently locking 40% of the protocol's weekly revenue for token repurchase to a flexible model!

Regarding the token's inflation, the weekly repurchase and permanent lock is effective but slow; it is gradual and cannot quickly respond to inflation risks.

Directly burning 20% creates immediate deflation; simply put, assuming the market cap remains unchanged, if the supply decreases by 20%, the price could theoretically increase by about 25% (Price = Market Cap / Supply).

Many friends previously mentioned that the price of LISTA seems disconnected from what they are doing. One reason for this is that the expectation of future token unlocks dilutes users' perceived "value," so this burn is actually a way to restore LISTA's value.

Moreover, the "flexible model" also means that Lista DAO will have more budget in the future to build the ecosystem.

For example, it can be used to collaborate with other protocols, expand the protocol's own functionalities, and provide DeFi yield subsidies.

Currently, Lista, and even the entire BNB Chain's DeFi ecosystem, is relatively weak compared to the well-known TVL powerhouse AAVE, Ethena, and Pendle, but this reform offers hope!

For instance, in the PT circular lending strategy mentioned yesterday, while Lista can also participate, the options are relatively limited and the overall returns are lower.

If this 40% budget is used to connect with other protocols and provide certain subsidies for yield strategies, it could supplement the PT circular lending or LP circular lending strategies.

Lista may not see a TVL growth of 5 billion USD in a week like AAVE has recently, but a growth of hundreds of millions isn’t too big of a problem!

At that time, the TVL powerhouse will have a place for Lista!

Above is the greatest expectation for Lista's proposal!

Lista is one of the protocols I use most frequently, unfortunately, I recently closed my long contract grid, and now only have the locked veLISTA left, missing out on the price increase, 😭

Note: The above is for information sharing only, not investment advice, please do your own research!

DeFi Enthusiast: BitHappy