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Huma Finance recently announced a significant adjustment to its token economics, attracting widespread attention in the market. The project has launched an ambitious plan to use 50% of the transaction fees for the buyback and burn of HUMA tokens. This initiative has achieved remarkable results in the second quarter of 2025, with a total of 140 million HUMA tokens burned, significantly reducing the token's Circulating Supply.
This strategy complements HUMA's LP reward model. The model adopts a quarterly decreasing release method, releasing 40% in the first year and then decreasing by 7% each quarter thereafter. This combination effect gives HUMA tokens a strong deflationary characteristic, which is expected to support its value in the long term.
From a technical perspective, Huma's innovation lies in its unique payment fuel mechanism. Each cross-border transaction requires burning 0.003 HUMA, which directly ties the demand for the token to the activity level of the ecosystem. At the same time, the protocol treasury adopts a two-year linear release strategy to ensure a continuous supply of funds for ecosystem development.
Market data shows that the destruction volume of HUMA has a significant positive correlation with the trading volume. The trading volume in the second quarter increased by 217% month-on-month, which directly drove the destruction volume to soar by 350% year-on-year, highlighting the project's good development momentum.
In terms of compliance, Huma has also made significant progress. The project has obtained MSB licensing in the United States and MPI licensing in Singapore, demonstrating its efforts in regulatory compliance. Notably, the DeFi anti-money laundering standards developed by Huma in collaboration with Elliptic have been adopted by the EU's MiCA (Markets in Crypto-Assets) legislation, which is undoubtedly an important recognition of its compliance practices.
In addition, Huma is actively expanding its cooperation with traditional financial institutions. Through the Huma Prime service, some well-known banks have achieved overnight financing in the tens of millions of dollars, which not only broadens Huma's business scope but also further consolidates its advantageous position in compliance.
In summary, Huma Finance is building an ecosystem with strong deflationary characteristics, technological innovation, and regulatory compliance through a multi-faceted strategy. These initiatives are expected to not only drive the value growth of HUMA tokens but also provide valuable references for the healthy development of the entire DeFi industry.