In the current market, large funds are no longer playing with meme coins. They are looking for projects that can generate self-sustaining revenue—assets with a positive economic cycle.



Recently, I studied the token mechanism of DUSK and discovered a very interesting phenomenon: a "supply shock" signal is forming.

Many people only look at the price, but what truly matters are the staking rate of $DUSK and the incentive design. DUSK uses the Succinct Attestation protocol, which requires a large number of validation nodes to maintain network decentralization. To attract these nodes, the project team has designed a quite competitive staking incentive—this is where it gets interesting.

The economic flywheel works like this:

RWA-type products (bonds, ETFs, etc.) launched on DUSK require institutions to pay for complex privacy computations, necessitating large purchases of $DUSK. At the same time, retail investors and node operators who want to share in the network growth dividends must lock up $DUSK to act as validators. Institutions are buying, nodes are locking, and the circulating supply in the market is decreasing rapidly.

I looked at recent on-chain data, and the frequency of large holders moving tokens into staking contracts is clearly accelerating. This is a signal of smart money—they are preparing to lock tokens for long-term network benefits. Supply is becoming tighter, demand is growing, and this is the core of the story.
DUSK1,87%
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LuckyBlindCatvip
· 01-20 05:51
Large funds are really doing their homework seriously, unlike us retail investors who just look at the K-line chart, haha. I need to think more about the staking flywheel logic of DUSK... But smart money locking in positions is definitely a signal, just worried it might turn into another information gap game.
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Layer2Observervip
· 01-20 05:50
This analytical perspective indeed hits the point, but one clarification is needed — an increase in staking rate does not necessarily mean a supply shock; it also depends on the incentive cycle and unlocking mechanisms, which require further validation.
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MultiSigFailMastervip
· 01-20 05:49
The narrative of supply shocks sounds convincing, but large holders locking their positions could also be just a preparation to liquidate retail investors. Who can really say for sure... However, the DUSK mechanism design is indeed more interesting than those trash ones on the market.
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RugPullProphetvip
· 01-20 05:46
Oh dear, I've heard this supply shock theory so many times. Every time they say it's going to take off, but what happens?
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MEVHunterWangvip
· 01-20 05:41
Oh, DUSK's logic does have some merit, but I have to say... I've heard the supply shock explanation too many times. What happens at critical moments?
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ImaginaryWhalevip
· 01-20 05:39
The logic of supply tightening sounds good, but the real question is—Is the RWA launch schedule reliable? Will institutions really come?
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GateUser-4745f9cevip
· 01-20 05:24
I've heard this supply shock logic too many times, and every time it sounds very convincing, then... well, you know.
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