Written by: Deep Tide TechFlow

When discussing the concept of "governance" in the crypto industry, many people eloquently explain: token holders vote to reach consensus and drive ecosystem development.

But when it comes to actual implementation, almost everyone who has engaged in governance laments: it's arguably the most challenging module in the crypto space.

From decentralizing governance tokens to mobilizing community participation, from balancing stakeholder interests to transparently executing governance proposals... each step presents challenges.

Governance operates like a highly precise and intricate machine: when functioning well, it becomes an ecosystem growth flywheel; but if any component fails, it faces community skepticism and trust rebuilding.

For exchanges with larger user bases, more stakeholders, and higher discussion volumes, leveraging governance for ecosystem advancement presents an even more complex proposition.

Coinciding with HTX DAO's release of its 2025 annual report - an organization committed to establishing DAO governance benchmarks - Deep Tide TechFlow conducted an in-depth conversation with Molly, HTX's official spokesperson and HTX DAO ambassador.

Examining the annual report reveals HTX DAO's impressive achievements: 849,900 global $HTX holders, 1.1916 trillion $HTX in cumulative on-chain voting, 85.88 trillion $HTX permanently removed from circulation, and over $30 million in total user收益 distribution... With $HTX at its core, 2025 marked the year HTX DAO's governance framework became fully operational.

When discussing $HTX's token positioning, Molly defined it as "a token designed for decentralized governance," stating:

Unlike platform tokens primarily confined to single ecosystems, DAO governance tokens enable diversified exploration around entire governance systems, community culture, and Web3 infrastructure development, offering greater potential. HTX DAO aims to become an open, inclusive ecosystem where all HTX-related builders and community members can collectively participate in decentralized governance practices.

Regarding the community-focused $HTX burn mechanism, Molly elaborated on how it interconnects with governance voting, token value, and ecosystem development to achieve self-sustaining, sustainable growth:

HTX DAO has formally transitioned from "liquidity donations" to "burn mechanism." Each quarter, $HTX equivalent to 50% of exchange revenue will be permanently removed from circulation. The burn mechanism serves both as a token value accelerator and decentralized governance catalyst.

Finally, addressing core criteria and implementation pathways for establishing "DAO governance benchmarks" - frequently mentioned in social media - Molly shared key factors:

I believe creating successful decentralized governance models first requires verifiable economic closed loops, followed by properly managing oversight and authority relationships. Moving forward, HTX DAO will vigorously expand $HTX's utility scenarios through both internal platform exploration and external institutional partnerships, while simultaneously enabling broader participation in $HTX's token ecosystem to increase holder numbers.

This content follows Molly's insights into HTX DAO's community-driven governance, revealing $HTX's more scientifically democratic burn mechanisms, diversified utility empowerment, and stronger sustainable value growth foundations.

$HTX Isn't a Platform Token - It's a More Open, Inclusive Governance Token

Deep Tide TechFlow: First, please introduce yourself and your primary responsibilities.

Molly:

Hello everyone, I'm HTX's official spokesperson and also serve as HTX DAO ambassador. I'm delighted to have this opportunity to connect with everyone.

Having worked in blockchain for over four years, my recent focus involves exploring centralized exchange governance mechanisms and their integration with decentralized DAO structures. We're seeking sustainable models for "exchange DAO transformation."

Deep Tide TechFlow: What kind of organization is HTX DAO? What are its objectives, and how does it relate to $HTX tokens?

Molly:

This is a frequently asked question. HTX DAO is a decentralized autonomous organization initiated by HTX exchange with TRON ecosystem support, collaboratively established by community members, early contributors, and global advisors. Our initial motivation was exploring how to genuinely integrate decentralized governance concepts into centralized exchange systems, enabling token holders to participate in exchange governance and decision-making.

Through this exploration, we discovered DAO's potential extends far beyond exchange governance, encompassing democratic structural development, governance model innovation, and cultural ecosystem cultivation - all emerging directions from our practical experience.

Currently, we're positioning HTX DAO as a reference model. If our exploration proves successful, we hope it provides guidance for other DAO initiatives. Over the past two years, we've received numerous knowledge-sharing requests from other DAO projects, which we find highly encouraging.

Regarding $HTX's relationship with the DAO, $HTX Token serves as the DAO's governance token. It supports not only HTX platform but also exchange ecosystems like Poloniex. Its positioning isn't traditional "platform token" but rather a token oriented toward decentralized governance.

Compared to platform tokens limited to single ecosystems, DAO governance tokens offer greater potential for diversified exploration around governance systems, community culture, and Web3 development. We envision HTX DAO as an open, inclusive ecosystem where all HTX-related builders and community members can collectively participate in decentralized governance practices.

Deep Tide TechFlow: Since $HTX isn't a platform token, why did HTX choose supporting DAO governance tokens over issuing platform tokens?

Molly:

From industry development perspective, platform token narratives belong to previous cycle. Their models have been repeatedly validated and relatively matured through fee discounts, mining incentives, platform utilities, and even public chain launches - all with market success cases. However, we believe the industry is entering a new phase emphasizing decentralization and community governance.

Most platform token governance remains fundamentally centralized, with decisions and utility logic controlled internally. Through HTX DAO exploration, we found genuine innovation lies in returning governance rights to communities and ecosystem participants.

At HTX DAO, many matters aren't unilaterally decided by the exchange but collectively discussed and governed by external ecosystem builders, token holders, and DAO committees. This represents fundamental differentiation from traditional platform tokens.

Admittedly, this path isn't easy. As I've mentioned previously, we cannot guarantee complete success, but it deserves attempt because it addresses longer-term question: how to establish new collaborative relationships between external community forces and centralized exchanges rather than simple hierarchical structures.

Vision-wise, platform tokens resemble platform equity extensions with governance scope mainly limited to single ecosystems; whereas DAO governance tokens target broader objectives, aspiring to build open, autonomous, co-created ecosystems. We believe such attempts better align with crypto industry's "decentralization" direction while offering new possibilities for exchange governance.

Deep Tide TechFlow: What role do you envision for $HTX? What are its most unique, irreplaceable competitive advantages compared to other platform tokens?

Molly:

As mentioned, platform token models might represent phase-specific trends, with sustainable development likely limited to leading exchanges due to finite resources and market share. In competitive environments, stronger exchanges naturally develop more competitive ecosystems.

Therefore, $HTX's role isn't competing with other platform tokens. Actually, we believe exchange development intertwines with entire industry growth. We remain relatively niche - insiders have years of experience, but external traditional financial institutions and new entrants maintain wait-and-see attitudes. Remaining within small circles prevents ecosystem expansion, whereas enabling broader understanding and participation drives industry prosperity, consequently benefiting $HTX.

Thus, we've set clear annual objective: becoming builders. Beyond focusing solely on exchange platform, we're expanding into developer ecosystems, philanthropic projects, etc. These represent future directions - making crypto technology more accessible, understandable, and usable for broader audiences.

$HTX's advantages are evident: as decentralized organization, we effectively evangelize crypto industry globally, introducing concepts and participation methods to external audiences. Our Shanghai developer forum attracted numerous Web3-interested external participants, building bridges, dispelling misconceptions, and generating industry interest.

Additionally, we collaborate with developers and researchers exploring crypto technology applications across various fields. HTX DAO not only provides investment support but also drives technological application and development. We recognize that multi-party collaboration genuinely advances the entire industry.

$HTX's another unique advantage is our robust content research team. Many might not realize our platform operates professional cryptocurrency research institute with deep expertise in crypto-related fields. We provide professional analysis and guidance helping external audiences understand industry dynamics and development trends. We're also developing Web3 courses for Web2 users, facilitating industry comprehension and entry points.

Burn Mechanism Serves as Both Token Value Flywheel and Decentralized Governance Catalyst

Deep Tide TechFlow: $HTX's burn mechanism attracts market attention. Could you detail its funding sources, cycles, and decision logic? How does it fundamentally alter token supply-demand dynamics?

Molly:

I'll address this in three parts.

First, funding sources: initial burn funds originated from liquidity donation model, with half coming from HTX's $HTX and half from Tron's $TRX, specifically liquidity donations based on HTX's revenue situation.

After approximately six months of liquidity pool development, we gradually transitioned to burn model. Currently, burn funds entirely come from $HTX held by HTX's liquidity department. Initial token allocation included exchange-held tokens, but as burning progresses, exchange-held $HTX will continuously decrease.

This year, we decided to donate all $HTX to community achieving full circulation. Future token management and governance will transfer to DAO organization. This means burned tokens represent not just circulating financial instruments but further commitment to decentralized governance.

Regarding burn mechanism updates, we've incorporated them into this year's whitepaper, actually implementing since last year's third quarter. Specifically, we established fixed ratio: each quarter, $HTX equivalent to 50% of exchange revenue will be burned. For example, currently in fourth quarter, we'll calculate total exchange revenue before December 15th and burn $HTX equivalent to 50% revenue.

Finally, regarding burn mechanism's impact on supply-demand dynamics, this touches core issues of token governance and decentralization. As mentioned, with exchange development, higher revenue means more $HTX burned. Thus, exchange-held tokens will gradually diminish, eventually entering completely DAO community-led decentralized governance phase, where DAO establishes relevant proposals maintaining healthy deflation mechanisms while continuously adjusting and optimizing based on development stages.

Deep Tide TechFlow: You mentioned donating all $HTX to community achieving full circulation - I understand this refers to HTX DAO. What's the decision process for allocating these funds?

Molly:

After entering DAO, tokens become completely community-managed.

Regarding governance, committees undergo community member elections - we've completed two election cycles. Election mechanisms remain highly open: any $HTX holder can participate, though certain thresholds exist for $HTX holdings and professional experience. Elections follow international standards including campaigns, Q&A sessions, and live streams. Elected committee members oversee token governance and ecosystem development, requiring regular progress updates to community and accepting holder supervision.

Initially, we held semi-annual elections, but during second cycle we consulted first-term committee members feeling six-month terms were too short for knowledge accumulation. We adjusted to more conventional frequency - currently testing 1.5-year terms, with potential extensions based on performance, generally 3-4 year election cycles.

Governance-wise, committee members can propose initiatives for community discussion and voting. Approved proposals receive corresponding resource allocation for project implementation. For example, we recently initiated developer ecosystem proposal involving entire process from proposal submission to review, fund allocation, and incentive mechanism establishment.

These funds manage through HTX DAO with completely transparent sources and flows. Future plans include publicly displaying treasury fund movements on DAO website, enabling all users to track specific expenditure destinations and effects.

Deep Tide TechFlow: How do you ensure governance process fairness, transparency, and efficiency, truly achieving community-driven operations?

Molly:

This represents ongoing consideration throughout our practical experience.

Regarding fairness and transparency, we previously over-interpreted fairness as one-person-one-vote. However, practical experience revealed this approach's immaturity. During last year's market downturn, a proposer suggested burning 99% tokens, receiving substantial support under "one-person-one-vote" model. Clearly, this represented extreme, emotional decision whereas token burning should follow strategic objectives.

This incident made us realize so-called fairness and transparency must ensure entire ecosystem's healthy development. Our primary responsibility lies with ecosystem and holders. Often requiring more prudent approaches, short-term popularity or traffic shouldn't measure success, especially during initial phases needing vision-oriented participants guiding toward sustainable growth.

Consequently, we adjusted voting mechanisms. We gradually recognized holders with more tokens should possess greater voting influence, while professional opinions deserve more respect. For example, during voting listing processes, expert recommendations and exchange asset team ratings could carry higher weights than ordinary user votes. Ensuring fairness and transparency, all voting processes remain blockchain-verifiable with completely public addresses, procedures, and results.

Data ultimately validated our decisions. For instance, comparing six projects selected through voting listing with unselected projects' market performance over time demonstrated our selections aligned with ecosystem development core objectives.

Therefore, beyond ensuring voting process and result transparency, we emphasize post-voting tracking and feedback. Through such data, we evaluate whether decisions genuinely promote ecosystem development while ensuring future decision accuracy and effectiveness.

We believe beyond data and transparent voting mechanisms, communication remains crucial. We regularly engage users through Twitter and Space sessions, explaining decision rationales and underlying logic. This approach helps users better understand our objectives and directions, addressing concerns.

Actually, we find communication highly effective. Many users might misunderstand without full context, but through explanation they often comprehend our decisions while developing future confidence. Moreover, seeing decisions ultimately deliver returns and positive development directions gradually strengthens trust.

Multi-Scenario Utility Enhancement Injects Fundamental Value Logic into $HTX

Deep Tide TechFlow: Beyond burning, what other measures (like locking, staking) does HTX employ to maintain $HTX token scarcity?

Molly:

Regarding $HTX token scarcity, we primarily ensure through burn mechanism. This remains crucial. Simultaneously, we focus on token liquidity and price stability where liquidity donation pools play significant though often overlooked roles, with effects becoming increasingly evident over time. They not only help stabilize token prices but also provide market support.

We initially guaranteed token deflation through 50% burn ratio, occasionally organizing activities like last year's trading mining program where all distributed $HTX underwent 1:1 repurchase and burning. This approach both promoted token burning and effectively stabilized prices.

To stabilize user holdings and promote token circulation, we implemented locking and staking strategies. For example, last year we offered high interest subsidies for locking - initially 18% for three-month terms and 15% for flexible terms, attracting greater holdings through attractive APY.

We also integrated Launchpool access - currently platform $HTX holders can simultaneously earn wealth management and mining rewards with single click, further empowering token holders.

We introduced special considerations for $HTX holders across multiple platform scenarios. For instance, VIP client privileges include $HTX holdings accelerating qualification for premium client status. Additionally, OTC trading sections offer fee discounts for $HTX holders. Overall, we encourage widespread $HTX usage within platform while increasing holding willingness and usage frequency through various scenarios. Importantly, revenue generated from $HTX usage contributes to burning, forming complete闭环 that both promotes token burning and stabilizes token scarcity.

We're actively exploring $HTX token applications within DAO ecosystem. Future DAO construction and activity participants will receive