DuckChain Completes Burning of 5.45% of Total DUCK Token Supply

Event Background

DuckChain is an Ethereum Virtual Machine (EVM)-compatible Layer 2 blockchain platform designed to connect TON to major ecosystems such as Ethereum and Bitcoin. With the goal of moving billions of Telegram users from off-chain to on-chain, DuckChain has quickly gained attention for its unique integration with Telegram Stars – a payment method that simplifies gas and transaction fees. The DUCK token, with an initial supply of 10 billion, serves as the backbone of the ecosystem, supporting functions such as staking, governance, and fee payments.

Token burning is not a new concept in the cryptocurrency market. It is a common strategy to reduce the total circulating supply, potentially increasing the value of each remaining token if demand remains or increases. In the case of DuckChain, burning 5.45% of the total supply – equivalent to 545 million DUCK tokens – is a notable move, especially in the context of the project's strong community development and ecosystem expansion.

Token Burn Event Details

According to the official announcement, DuckChain completed the token burn on March 20, 2025, reducing the total supply from 10 billion to approximately 9.455 billion DUCK tokens. This process was done by sending the burned tokens to a “black hole” wallet address – where they are permanently locked and cannot be used again. Although the details of the source of the burned tokens (e.g. from circulation, team reserves, or community funds) have not been fully disclosed, the move demonstrates DuckChain’s commitment to managing the supply in a transparent and user-friendly manner.

The event comes at a time when the cryptocurrency market is experiencing significant volatility, with investor sentiment being affected by the overall performance of major digital assets such as Bitcoin and Ethereum. The DUCK token price has recently been hovering around $0.0029 (according to CoinMarketCap data as of early January 2025), down 14.3% over the previous 7 days. The token burn can be seen as DuckChain’s attempt to reverse this trend and create positive momentum for the token’s value.

The meaning of burning tokens

The 5.45% reduction in total supply could increase the scarcity of DUCK tokens, which could push up the value of each token if market demand does not decrease. With the current supply reduced to 9.455 billion and actual circulation around 5.9 billion (according to CoinGecko), selling pressure could be alleviated, creating conditions for long-term price increases.

DuckChain has dedicated 77% of its total token supply to community and ecosystem development, including 50% for airdrops. The token burn shows that the project is not only focused on distribution but also committed to maintaining asset value for holders. This is a positive signal for DuckChain's more than 20 million users, including 3 million paying users and 7 million active wallet addresses as of January 2025.

With 10% of tokens reserved for investors, 10% for the team, and 3% for advisors, the reduction in total supply helps rebalance the distribution ratio, avoiding future value dilution when tokens from these funds are unlocked. This is also in line with DuckChain's long-term strategy of building a sustainable ecosystem.

Potential impact on the market

• Short-term: The token burn event could stimulate positive investor sentiment, leading to increased trading volume and DUCK token price in the next few days. Data from January 2025 shows DUCK's 24-hour trading volume at $3.23 million, up 50.4% from the previous day. If this trend continues, the price could recover from its recent lows.

• Long-term: The success of token burning depends on DuckChain's ability to sustain ecosystem growth. With plans such as expanding the validator network, launching a staking campaign, and developing core dApps (as per KuCoin's roadmap), reducing supply is just one part of a larger strategy to increase the real value of DUCK.

Risks and challenges

Despite the potential benefits, token burning does not guarantee success. If DuckChain fails to attract new users or stimulate demand for DUCK, the token price may not increase as expected. Additionally, the overall volatility of the cryptocurrency market is also a factor beyond our control that could overshadow the impact of the event.

Conclude

DuckChain's completion of the 5.45% burn of the total DUCK token supply is a strategic move, demonstrating a long-term vision for supply management and value creation for the community. In the context of the project's efforts to become a bridge between Telegram and the blockchain world, this move not only strengthens trust but also lays the foundation for sustainable development. However, to turn the potential into reality, DuckChain needs to continue to promote technological integration, expand users, and make the most of the Telegram ecosystem. This event will certainly be the focus of attention of the crypto community in the coming time, and its true effectiveness will be verified over time.