JST Token: The Star Asset of the TRON Ecosystem

2025-04-28, 06:06

On April 27, 2025, Sun Yuchen, the founder of TRON, made a stunning statement on the X platform, claiming that the JST Token has achieved a fundamental reversal and is expected to become the ‘next hundredfold token.’ With this statement, the price of the JST Token surged by 34% within 24 hours, reaching $0.04310, with trading volume soaring and market enthusiasm running high. Sun Yuchen pointed out that the JST Token, as the core governance asset of the TRON eco, relies onJustLend and USDD The strong performance is demonstrating enormous growth potential.

What is JST Token?

JST Token (JUST) is the native governance token of the Just platform on the TRON blockchain, aiming to support decentralized finance (DeFi) and stablecoin eco. JST holders can participate in governance decisions of the Just platform, such as adjusting the interest rates of JustLend or the collateral parameters of USDD. Since its launch in 2020, JST Token has grown to become a pillar of the TRON DeFi eco, closely tied to the success of JustLend and USDD.

Sun Yuchen compares JST Token to AAVE A combination with MakerDAO, emphasizing its dual role in lending and stablecoin governance. He predicts that the annual revenue of the JST eco will exceed 100 million US dollars in 2026, and promises to repurchase and destroy all JST tokens with all profits to reduce circulation supply and increase long-term value. This deflation mechanism is similar to Binance’s. BNB Strategies have sparked widespread discussions in the market about the investment potential of the JST token.

JST Token’s growth engine

JustLend: The leader of TRON DeFi

JustLend is a decentralized lending platform in the TRON eco, allowing users to provide assets to liquidity pools or borrow against collateral. With the high throughput of over 2000 transactions per second (TPS) on the TRON blockchain and transaction fees as low as a fraction of a cent, JustLend offers up to 30% annual percentage yield (APY), attracting a large amount of liquidity. In 2022, its total value locked (TVL) has reached 1.9 billion US dollars, and Justin Sun claims that the platform’s annual net profit is in the tens of millions of dollars.

JST Token plays a governance role in JustLend, allowing holders to vote on key parameters such as interest rates and collateral ratios. As the user base and lock-up amount of JustLend continue to grow, the demand and value of JST Token are expected to further increase. However, the high yield depends on the subsidy from TRON DAO, and more data verification is needed for long-term sustainability.

USDD: Explosive growth of algorithmic stablecoins

USDD is an algorithmic stablecoin launched by TRON in 2022, maintaining a peg of 1 USD through arbitrage mechanism and TRON DAO reserves (including assets such as TRX, BTC). The USDD 2.0 launched in 2025 attracted a large number of users with a 20% APY, becoming a core asset in the TRON eco. Justin Sun stated that the ‘explosive growth’ of USDD further solidified the governance value of the JST token. However, the algorithmic mechanism of USDD and Terra Similar to UST, the latter collapsed in 2022, causing a loss of $40 billion. USDD also uncoupled to $0.97 in December 2022, with reports in 2023 questioning the transparency of its stUSDT reserves, pointing to funds flowing to platforms controlled by Justin Sun. These events remind investors that the future of the JST token is closely linked to the stability of USDD.

Repurchase and Burn Mechanism: JST Token’s Deflation Potential

Sun Yuchen has promised to use all the profits of JustLend and USDD to repurchase and destroy the JST token, reducing the circulating supply, which theoretically could drive up the token price. This mechanism has been successful in the crypto market, for example, Binance significantly increased the value of BNB through burning. Users on the X platform have responded positively to this plan, with some believing that the deflationary effect of JST token will attract long-term investors.

However, the ution of buybacks and burns depends on the actual profit-making ability of the eco. The high yield portion of JustLend and USDD comes from TRON DAO subsidies. If the market environment deteriorates or subsidies are reduced, profits may be limited. In addition, Justin Sun has not publicly disclosed detailed financial data, investors need to closely monitor TRON DAO reserve reports and buyback ution to assess the deflation potential of the JST Token.

TRON eco: JST Token’s solid backing

The value of JST Token is inseparable from the support of the TRON blockchain. Founded by Justin Sun in 2017, TRON is known for its high performance and low cost, using the Delegated Proof of Stake (DPoS) mechanism. By 2025, TRON has over 10 million daily active users, leading the industry in the number of DApps. The total locked value of its DeFi eco exceeded $8.1 billion in 2023, second only to Ethereum.

TRON’s diverse eco provides broad application scenarios for JST Token:

DeFi eco: JustLend, SunSwap, and JustStable form a complete financial , supporting lending, trading, and stablecoin services.
Content and Entertainment: By acquiring BitTorrent, TRON launches BTFS and BTT tokens to support decentralized storage and the NFT market.
Global cooperation: Cooperating with giants such as Samsung, Opera, etc., integrating TRX and TRON eco into mainstream applications, especially in Asian and Latin American markets.

TRON’s technical advantages and global layout provide a solid foundation for the growth of JST Token, but centralised governance (many super representatives are closely related to Justin Sun) and regulatory pressure may affect eco trust.

Conclusion

JST Token, as the core asset of the TRON DeFi eco, has shown significant investment potential with the strong performance of JustLend and USDD, as well as the repurchase and burn mechanism promised by Justin Sun. TRON’s high-performance blockchain and diverse applications provide solid support for the JST Token, especially in the DeFi and content fields. However, risks of algorithmic stablecoins, sustainability of high returns, transparency issues, and regulatory pressures remind investors to remain cautious.

Author: Rooick Z., Gate.io Researcher

This article represents only the author's opinion and does not constitute any trading advice. Investment carries risks, and decisions should be made cautiously.

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