DEGEN Foundation Announces Phased Token Burn to Combat Inflation

The DEGEN Foundation announced on the X platform that 32.5% of DEGEN tokens will be destroyed to counter dilution and inflation, seeking community feedback as of July 29, 2025.

This reduction in token supply aims to enhance long-term value for holders and prevent excessive inflation, aligning with market trends for similar crypto assets.

DEGEN’s 32.5% Token Burn Targets Inflation Concerns

The DEGEN Foundation has taken steps to address community concerns over potential inflation and dilution by initiating a phased destruction of 32.5% of DEGEN tokens. This initiative intends to create long-term sustainability for the project by prioritizing current holders’ interests over future airdrops.

The decision signals a shift away from large-scale airdrop plans, instead opting to implement steady, monthly token burns. This approach is designed to establish a sustainable ecosystem while also rewarding long-term holders. The Foundation acknowledged that retaining these tokens for airdrops could dilute existing interests.

Ai 姨, Web3 Content Creator, “The new rules for the DEGEN token ecosystem will not take effect until June 19, 2025, so today’s DEGEN token trading mechanics remain unchanged.”

Market Impact and Strategic Insights Post-Token Burn Announcement

Did you know? The phased burn strategy mirrors earlier successful tactics by other meme tokens like Shiba Inu, which improved market sentiment through controlled supply reduction.

According to CoinMarketCap, DEGEN’s current price is $0.00 with a market cap of $106.54 million. Its 24-hour trading volume is $36.05 million, reflecting a slight decline of 3.25%. Notably, DEGEN experienced a 57.40% rise over 90 days, highlighting potential momentum.

Insights from the Coincu research team suggest that aligning the burn strategy with clear communication could enhance investor trust. This may result in sustained interest, although the broader impact will depend on consistent execution and engagement. The strategic reduction of supply, if effectively managed, can reinforce DEGEN’s market position and foster community alignment.