Many people only focus on the Gas fee burn when looking at DUSK, but they overlook a more core deflationary design. The project team has long embedded a true trick called Protocol Owned Liquidity (POL), which is the real invisible engine of deflation.



What does Dusk plan to do with the genuine income from EVM and RWA products? Buy back tokens and then permanently inject them into the liquidity pool. It sounds simple, but the project's CTO frankly stated a big truth — this is essentially a form of destruction. Why is that? Because once these repurchased tokens are locked into the pool and generate returns, they will never be thrown back into the market. Nominally still on-chain, but in reality, they have completely disappeared from circulation.

This design has two clever aspects. First, the tokens become scarce. Second, the market depth is directly improved; the deeper the liquidity pool, the more stable the market fluctuations. Instead of violently destroying tokens, it’s better to let the earnings support deflation — the overall pattern is indeed different.

Many are scared by the daily circulation numbers, but there's no need to panic. Once you understand this logic, you'll see that DUSK's deflation mechanism is quite solidly designed. This is not a simple brute-force destruction game, but a play that uses earnings to reinforce scarcity.
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MoonRocketmanvip
· 01-24 00:44
Oh no, I've already calculated this POL logic long ago. Rebuy locking pools equals invisible destruction, and from an RSI perspective, it hits the key point directly. --- The deeper the liquidity, the more stable the market. This design is indeed more sophisticated than brute-force destruction, showing some real ingenuity. --- Wait, permanently locking into the pool to generate yields? That sounds like CTO is hinting at something. We need to track the actual fuel refilling progress. --- Many people are scared by the circulating supply, but I see this as the biggest signal for launch window. Once scarcity is confirmed, there's no turning back. --- The deflation engine operates invisibly. When the time comes, there will be a bunch of coins that can't escape, and the market will suddenly realize that the real liquidity has decreased by an order of magnitude. --- POL's move is more ruthless than direct destruction because the nominal still exists but the actual coins disappear, maximizing psychological game. --- Reaping yields to reinforce scarcity? This idea is a bit like rocket reuse. Lower costs, higher efficiency, and in the long run, the overall pattern truly changes.
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Blockwatcher9000vip
· 01-23 21:19
POL's logic is indeed a bit cleverer, much smarter than direct destruction.
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gas_fee_therapistvip
· 01-23 05:29
POL this gameplay is indeed excellent, much more decent than simply burning tokens. --- Wait, if liquidity is locked, can it really be considered as disappearing from circulation? I feel like this is a wordplay. --- Haha, finally someone explained it clearly. I was confused when I read DUSK's documentation. --- I get this logic now, it's like the token is doing an infinite nested benefit cycle. --- The question is, when will the market fully understand this design? Right now, many are still shouting for destruction. --- It sounds good, but if market sentiment crashes, all this liquidity is pointless. --- Deepening the liquidity sounds comfortable, but the real key is whether the returns can keep up with inflation.
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FlashLoanPhantomvip
· 01-23 05:15
This move by POL is indeed interesting. It's much more elegant than simply burning tokens, and with increased depth, the volatility actually stabilizes... Wait, in that case, who will take on the liquidity pool rewards?
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LightningAllInHerovip
· 01-23 05:10
Oh wow, this is exactly what I want to see, not the kind of destructive brute force work. POL's approach definitely shows some vision.
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GateUser-a5fa8bd0vip
· 01-23 05:07
POL this approach is indeed smarter than direct destruction; locking the liquidity pool is equivalent to a form of destruction. Stabilizing the market is the real priority.
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